© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

Managed Services Channel Program

April 08, 2008

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2

What This Session Covers

The managed services market opportunity

Cisco’s Managed Services Channel Program Overview

Preview of the MSCP Agent model

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What Are Managed Services?

Information Technologies Delivered As Finished Solutions, Managed Remotely by Highly Skilled Professionals from a Network Operation Center (NOC)

Managed Services Are Proactively Monitored and Providers Can Troubleshoot Incidents from the NOC, According to Defined Service Level Agreements (SLAs) Negotiated with End Users

Managed Services Are often Offered on an Operating Expense Basis That Requires No Capital Outlay for the End User Customer

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4

Video on Demand

Wireless Mobility

Anywhere, Anytime Network Access

Collaboration Applications

20% of Global Workforce Is Remote

IT Departments Must Support Increasingly

Complex Business Applications

* Source: The Economist 2007

Information Technology Is Critical

Workplace EvolutionThe Way Business Is Done Dramatically Changes

Interactive Business

Video On-Demand

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CAGR18%

Security 20%IP Voice 39%Metro E 22%IP VPN 9%

Technology

Huge Growth Opportunity

Managed services growth bests growth rate of overall technology growthKey technologies are more likely to be consumed as managed servicesIT is shifting from technology decisions to solutions/ provider choices

Managed Services Trends:

$57B

2007 2008 2009 2010 2011

$49B

$41B$34B

$29B

2012

$66B

Source: Ovum 2008

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Revenue Growth in All Size Classes

18%CAGR (2007–2012)

21%

17%

17%

19%

20%

Global Revenues by Company Size Band, 2007 and 2012

2.07 5.213.51

8.257.81

16.869.0

19.75

6.21

15.83

28.58

65.90

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2007 2012

US$ B

5000+1000–4999250–999100–24920–99

Segment buying patterns are relatively consistent above 250 seats

*44% of SMB prefer to buy IT from Local VAR or SI—Forrester Research 2007

**

Source: Ovum, 2007

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Cisco’s Offer-Based Program Model

OutsourcingManaged ServicesResale

Program model geared to unique needs of MSP’sDrive AT and Cisco IP TransportConsistent with value-based strategyCreate preference for Cisco Powered Services

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 8

Fundamental Program Structure

ServiceCoveredby SLA

NetworkOperationsCenter

Tiering ofManaged ServicesRewards

Requirements

Service Portfolio

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Requirements

MSCP Criteria based on major industry frameworks:

ITIL (Information Technology Infrastructure Library )

ISO 20000-1

Cisco conducts independent third-party audit of Partner NOC

NOC Procedures and capabilities

Review of partner service portfolio

Services parsed into model

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 10

Cisco Powered Managed Services:Managed Unified Communication

Managed ConnectivityManaged Data Center

Managed SecurityManaged Mobility

Cisco AT Based Managed SolutionsCisco Based IP Connectivity

Managed LANManaged Legacy

Connectivity

Rewards Tied to Service Value

Strategic Managed Services

Legacy Managed Services

Rewar

dsReb

ates

*VIP, OIP, SIP Rebates do not apply to MSCP purchases

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Managed Service Designations

Managed Service OffersExperience Based Criteria1. Technical Attributes of service

2. Reporting and Management features

3. Resilience and Quality of Service

4. Service Level Agreements

Validated by independent 3rd Party

Inclusive Bills of Material

Pre-approved pricing

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12

Service Designations

ProgramLevel

Managed Connectivity

Managed Security

Managed Unified Comms

Managed Mobile Comms

Managed Data Center

Cisco Powered Managed Services

MPLS VPNMetro EthernetInternet IP Trunking

FirewallIDS/ IPS

Business CommunicationsUnified Contact CenterHosted UCS

WAAS

*TP Transport*Appl Aware VPN

*Managed TP

*NAC*Video Surveillance

*Service Mesh

Strategic Managed Services

MPLS VPNMetro EthernetInternetIPsec VPNIP Trunking

FirewallIDS/ IPSSecure Router (K9)

Business CommunicationsUnified Contact CenterHosted UCS

Wireless LAN WAAS

*NAC

*Hosting/Co-Location

Legacy Managed Services

RouterFrame Relay/ATMLAN

*Hosting/Co-Location

*Denotes Future Designation

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Conditioning the Market to DemandCisco Powered Managed Services

Cisco Website

CPMSMicrosite

Partner LocatorFind a MSP

SocialMarketing

Viral Videos, “Experience the CPMS Difference”

DigitalMarketing

Google, SEO, Banners Ads

Analyst Thought

LeadershipBusiness

TechnologyRoundtable

Managed Services

CommunitiesWebinars,

Blogs, Research

Demand Generation

Demand Accelerator

Tool

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 14

Phase 2Phase 1

Cisco Services and MSCP

Managed Services Channel Program

Shared Support

Co-brand Foundation

Collaborative Services

Collaborative Service Family for Managed

Services

Integrated Program Structure Service Price Predictability Rewards Tied to Value Provided through a Partner’s Managed Services OfferingsAligns Cisco Service Portfolio with WW Channels Managed Services Channel ProgramIntellectual Capital Based Service OfferingsAvailable SLAs

Use Existing Service

Programs

Cisco Service

Promotion for MSCP

or

3% net Rebate on New SMARTnet Orders

Use of E-Promotion Code

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15

Q and A

MSCP Program Details www.cisco.com/go/mscp

Cisco Powered Program www.cisco.com/go/cpn

Cisco Partnerspace www.ciscopartnerspace.com