Accelerating Growth Through the Network as the Platform · Accelerating Growth Through the Network ... Everything as a Service ... to enhance productivity and elevate service levels

Dan Smoot, Vice President

Accelerating Growth Through the Network as the Platform

Cisco Capital Worldwide Sales

28 June 2011

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 2

Megatrends Driving Changes

Cisco Today

Globalisation & Country Enablement

Cisco Capital Accelerates Problem Solving

and Drives Growth

Cisco Capital Offerings

Wrap-Up and Q&A


Revitalization of Cities,

States, Countries

Connected Life

Everything as a Service

Aging/ConnectingHypergrowth

700+ Million

Urbanized

3 Billion Will Be

Connected

Capacity Planning

New Business

Models and

Ecosystems

Smart+Connected

Communities

Network as the

Platform

SocialEconomic

Mobility Everywhere


Geo-Political Concern

InflationaryPressures

Equity MarketsVolatility

Business Confidence

Inconsistent Market Expansion

Global Economy

Kenya has recovered from the triple food, fuel, and financial crises and is experiencing

significant growth fuelled by a new constitution, the telecommunications boom,

macroeconomic management and regional integration among other factors

For the last decade, Tanzania has sustained high economic growth driven by structural

reforms and improvements in economic performance and service delivery

Source: The World Bank Website

East African Economy

Uganda maintains growth by moving towards structural transformation


“Kenya is at the threshold

of a major demographic transition and rapid urbanization.”- The World Bank


John Chambers,

Chairman and CEO, Cisco

“ A strong Information and

Communication technology

infrastructure is a key component to

driving socio-economic progress

around the world.

Countries also need sustainable

economic development to stimulate

innovation and job-creation.

The network is the platform in

accelerating economic growth and

improving the lives of citizens.”

–John Chambers,

Chairman and CEO, Cisco


Changing the way we live, work, play and learn

Worldwide leader in networking for the Internet

Founded in 1984

$40B cash/cash equivalents

$5.3B a year in R&D

141+ acquisitions

86% of products distributed via channel

100,000+ employees and contractors

Headquartered in San Jose, CA

Global presence in 165 countries


Go-to-Market

Investment Strategy

Innovation as a

means of evolving

through…

technologyInnovation

Build Buy

Partner


InternalInnovation

Engineers

20,000+

R&D Investment

Annually

$5.3B+

Major Labs

Worldwide

30Patents

Issued

8,000

Patents Filed

Annually

700Build


InternalInnovation

Source: Yahoo Finance, Company Financial Statements, analyst

estimates used for IBM, Intel and HP QFY10

IBM Microsoft Intel HP

$5.3B

13%

Cisco

R&D as Percent of FY10 Revenue

6%

14%14%

3%


AcquisitionStrategy

Buy

Market

Acceleration

Market

Expansion

New Market

Entry


Partner

Best In

Class

Long-Term

PartnershipMutually

Beneficial

Go-to-Market / Investment Strategy


• Expand the Network’s strategic relevance

• Accelerate the speed of innovation and execution

• Scale focus areas into $10B+ businesses

• Drive total shareholderreturn

2012-2016

2001-2011

• Ride the Wave of the IP build-out

• Build portfolio of Advanced Technologies to pull through core

Simplification

1985-2000

Innovation

Integration

Globalisation and Country Enablement are Our Key Pillars

What GlobalisationMeans to Cisco

Cisco’s vision is to become the most

globally relevant company to its

customers, partners and employees

Further our customers’ ability to

capitalize on global market transitions

by offering greater choice of offers,

business models, and ecosystems with

the network as the platform


SMART+CONNECTED COMMUNITIES

SUSTAINABILITY

ADVANTAGE

Social Economic Environmental

Retail School

Sports &

Leisure

Travel

Health

OfficeHomeGovernment

Telecom Utilities Safety & Security

Building Emergency

Response

Transportation

CLOUD COMPUTING

BORDERLESS NETWORK COLLABORATION

SERVICE DELIVERY

PLATFORMDATA CENTER /

VIRTUALIZATION


Consumer TelePresence

Common Area TelePresence

Linksys Routers

Digital Signs

IP Video Cameras

Access Control Points

Core and/or LAN Switches

Wireless Access Points

Advisory Services/Technical Services

65,000 residents

300,000 jobs

45M square feet of office space

30M square feet of residential space

10M square feet of retail space

10M square feet of public space


Marketplace is scrutinizing customers; customers are scrutinizing their spending

Pressure to negotiate better deals and discounts

Banks have tighter lending criteria

Pressure for Service Providers, companies and governments to enhance productivity and elevate service levels

Funding Impact on

Business

Need for

New Business

Models


Products, solutions and services to better conduct their businesses

Alternative sources of funding

Innovative and flexible procurement models

New financial solutions to enable cloud computing

Their business challenges resolved

Speed of delivery

Ease of doing business


Cisco Capital is a world-class financial

services organization specializing in

financing networking and communications

solutions by providing innovative, flexible

financial programs to customers and

partners worldwide

Cisco Capital Sales drive growth by

leveraging innovative financing solutions

for our sales force and customers


Develop deep understanding of customer needs

Drive growth by engineering financing products and solutions

Align with Cisco’s go-to-market and architectural plays

Use lifecycle management

Create new financial models to seize cloud and managed services opportunities


Mission: Enabling profitable growth through innovative financing

Countries offering

End User Financing

Countries with

Channel Financing

Countries offering

Cisco Certified

Refurbished Equipment

Billion in assets

Employees

Since

the leading provider of financing

for all Cisco solutions


• World-class Information

and Communications

technology Solutions

• Unmatched IP Expertise

and Innovation

• Comprehensive

Horizontal and Vertical

Architectures

• Technical and Advanced

Services

• Cutting-edge Cloud

based Services

• Trusted Global

Industry Leader

• Network as a platform for

Sustainable Competitive

Advantage

• Aligned to Business

Transformation Imperatives

• Vertical Expertise for

Optimization and Scalability

• IT Finance Specialists Aligned to CFO Needs and Business Priorities

• Partner to Build Financial Business Case: TCO and ROI

• Innovative Financing Models and Active Technology Lifecycle Management

• Strong Financial Resources and Global/Partner Relationships

Financial Decision

Makers

Business

Decision

Makers

Technical

Decision

Makers


End User Financing

Attractive, flexible

financing options

for Cisco

technology

solutions

Channel Financing

Credit lines and

payment terms

beyond the

standard Cisco net

30 day terms

Cisco Certified Refurbished Equipment

Price competitive

and trusted

alternative

when new Cisco

is not an option


• New Business

Models

• Cisco Architectures

and the Cloud

• Risk Sharing

• Market-Tailored

Financing Options

• Right Infrastructure

and Governance

• Global Operating

Platform

• Training Programs

• Excellence in Our

Sales Process

• Collaboration with

Functions Across

Cisco

Innovating Financial Solutions

Country Enablement

World-class Sales Organization


Innovation

and Evolution

of Financing

Solutions

1.Step

Financing

3. Subsidized

Base

2. Multi-term Financing

4.PAY As You

Grow

5.Flexible Demand

Existing Offers New Offers

• New SP business models focused on monetization

• Comprehensive Cloud/Data Center/virtualization

architectures

• Risk sharing offers for lower total cost of ownership

Data Center and Cloud Business Models and Offers

Increasing Complexity/Risk/Price

Lower Complexity/Risk/Price


Dynamic

Country

Enablement

• Position as a cross-border financing expert

• Leverage network of strong partners to grow business

• Establish Capital as a customer sales and business enabler

• Build the market


• New services in 9 countries in the eastern

African region

• Enables Wananchi Group to deploy

Cisco’s integrated end-to-end network

technology solutions, encompassing

Cisco’s BN, Collaboration and DC

virtualization solutions

• An important milestone for Cisco’s goal

to deliver advanced communication and

collaboration services

• Cisco Capital is uniquely positioned to

arrange the most competitive and flexible

financing

• Cisco & Wananchi Group will provide

innovative managed/hosted

communications and collaboration

services for the residential, corporate and

government sectors


“ Cisco Capital is a huge

advantage because it allows a

business to manage their cash

flow on their terms and pay for

technology in the way it makes

the most sense for them and

their budget.”

–Ryan Harper, President,

Cynnex Networks

“ Working with Cisco Capital

allowed us to realize an ROI

from Day 1 and enabled the

university to adapt to future

requirements through flexible

financing arrangements.”

–Richard Constantine

CIO, Swinburne University of

Technology, Australia

“ An upfront investment is usually

unavoidable when it comes to

upgrading the telephone system

for an entire company. Being

able to obtain the initial capital

and to significantly reduce costs

was very appealing.”

–Shigeaki Suzuki, Group Leader, IT &

Engineering. JCG Corporation


Capital

Changing the Way We Work, Live, Play, and Learn…and the Way Customers Buy!

Thank you.

Documents

Accelerating Growth Through the Network as the Platform · Accelerating Growth Through the Network ... Everything as a Service ... to enhance productivity and elevate service levels