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Financing Business Innovation Cisco Unified Data Center. [Name] [Title]. Business and technology impacting the data centre. Proliferation of d evices. Data deluge. Cloud. Energy efficiency. Security and compliance. Budget constraints. Business agility. 24x7 Business. - PowerPoint PPT Presentation
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© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Financing Business InnovationCisco Unified Data Center[Name][Title]
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2External Use Only 2
Business challenges
Technology trends
Cloud Data deluge
Budgetconstraints
Security andcompliance24x7 BusinessBusiness
agility
Proliferationof devices
Business and technologyimpacting the data centre
Energy efficiency
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3External Use Only 3
Today’s CIO challengeManaging growing demand for IT projects
70-80%Maintenanc
e
IT budgets
Funded new
projectsUnfunded project
Unfunded projectUnfunded project
Unfunded project
Missed business
opportunities
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4External Use Only 4
SERVER-RELATED SPEND (CapEx + OpEx)WW Spending on Servers, Power & Cooling,and Mgmt. /
AdministrationOVERALL SPEND DISTRIBUTION
29%
22%12%
11%
10%
7%7% 2%
People Software Energy / Facilities ServersNetworking Storage Disaster Recovery Overhead
Source: Gartner—Cisco IT, “Data Center Cost Portfolio”
Source: IDC, “New Economic Model for the Datacenter”
Data center economics
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$0
$50
$100
$150
$200
$250
$300
Power & Cooling ExpenseMgmt. & Administration—Virtual ServersMgmt. & Administration—Standalone ServersServer Spending
HighOpEx
IDC, 2011
Cust
omer
Spe
ndin
g ($
B)
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5External Use Only 5
Converging legacy infrastructure• Infrastructure not designed for easy integration
• Layers of management software holding the system together
Complexity drives up management costs• Rigid models to upgrade and maintain system-level designs
• Multiple tools and points of configuration
Converged Infrastructure = Management Software Layers
Legacy infrastructure and management
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6External Use Only 6
The marketplace has changed how organisations acquire and consume their technology.More than ever, it’s critical that organisations have the financial flexibility to acquire and renew technology assets in line with their business strategy, while maintaining predictable budgets.
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7External Use Only 7
Greater business flexibilityBenefit Step
FinancingMulti-Term
FinancingPay As
You GrowFlexible Demand
Lower upfront cost of acquisition
Immediate budget creation
Flexible payments
Match payments to business benefit
Accelerated breakeven
Off balance sheet financing
Pay as you grow benefits
Improved asset managementFaster ramp-up through staged capacityAbility to evaluate/ return unused buffer capacityVariable billing on a usage basis above minimum commitment
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8External Use Only 8
Step FinancingPay less in the early stages of the Cisco Data Center implementation and ‘step up’ payments over time.Allows better alignment of costs to business benefits.
Time (Months)603015 45
Financing Payments
Committed Payments
Cust
omer
Pay
men
ts t
o Ci
sco
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9External Use Only 9
Multi-Term FinancingForgo the upfront purchase of server capacity that is not immediately required, and have the flexibility to refresh blades more frequently over time.Accelerate the time to break-even on the data center investment.
6 36..................................................................60
2412 18 300
Time (Months)
Blades/ Expansion Cards
Chassis & Base Kit
Blades/ Expansion CardsBlades/ Expansion Cards
Committed Payments
Cust
omer
Pay
men
ts t
o Ci
sco
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10External Use Only 10
Pay As You GrowReady-to-use, continuous replenishment, on-site inventory with payment deferral, payments financed
6 36..................................................................60
2412 18 300
Time (Months)
Committed Payments
Cust
omer
Pay
men
ts t
o Ci
sco
Base capacity
$
$
$
$ Deferred invoice in arrears
demand
Buffer capacity
$
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11External Use Only 11
Flexible DemandA shared-risk consumption model for Cisco Unified Computing System with payments based on usage
Time (Duration of Contract)
Cust
omer
’s P
aym
ents
to
Cisc
o
Fixed paymentlocked into
a lease/ loan
Variable payments
billed monthly as used
usage
Baseline capacity
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12External Use Only 12
Financing your data center innovation• We are a wholly-owned subsidiary of Cisco,
specialising in providing flexible and innovative financing solutions for Cisco’s customers wherever they operate in the world:• Align payment to revenues • Avoid upfront set up costs• Achieve greater business flexibility through technology
refresh, without increasing OpEx• Keep your technology assets off your balance sheet
• For information about how we can help your data centre planning:
Email us at [email protected] visit our website www.ciscocapital.com/emea
Thank you.
