Cisco Confidential© 2010 Cisco and/or its affiliates. All rights reserved. 1

Jeff McEachern

Business Development Manager

Smart Services

Smart Care

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

What Makes a Cisco Service “Smart”?

Services that have …which collect …which is analyzedand compared to

…to provide

Actionable InsightCisco’s Intellectual Capital

Network DiagnosticData

Automated Software-enabled

Capabilities

+ +CISCO INTELLECTUAL CAPITAL

25 years of networking innovation and leadership

50 million installed devices

6 million annual customer interactions

90,000+ technical documents

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Smart Care

‘Four Pillar’ Capabilities

Smart Capabilities

24/7 Partner Access to Technical Assistance Center

Cisco.com and Smart Care Portal/Tools Access

NBD Hardware Replacement with Optional Four Hour Coverage

Cisco IOS Updates, Upgrades, and Software Updates

Cisco Smart Care Service

Single Contract

Management

ProductAlerts and

Notifications

Securityand Core

Assessments and Repair

Remote Network

Monitoring

Voice Assessments and Quality Monitoring Services

Network Wide Maintenance

Coverage

Delivered and Supported by Partner

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Inventory & Contract Management

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Dashboard: Alerts & Notifications

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Customer Reports Supports QBRs, facilitates budgeting and demonstrates value add

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Product EnhancementsOperational & Marketing Changes

Smart Care: Partner Asks

Bigger Average Contract Size More Flexibility

Consistency with other Cisco

offers

Faster on-boarding

More devicecoverage

Support moreprotocols

Better portal performance

Additional Assessments

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Smart Care: New Deliverables

Customers with 1000+ devices

Product EnhancementsOperational & Marketing Changes

Cisco incentive programs: XIP

SKU-based like SMARTnet

Training, sales & technical tools

UCS & SMB devices

Better portal performance

SNMP3 protocol

Medianet & IPv6

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Smart Care: Pricing & Profitability

• 15% Rebate Import contract into portal and maintain 70% appliance

deployment rate Stackable, in addition to attach/renew rebates

• Higher Services Margin Higher renewal rate Additional revenue due to the discovery of uncovered devices

and EOL Reduction in support calls Additional assurance you hit attach/renew New Business - Higher close ratio Professional Services Potential

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Smart Care Margin AnalysisSmart Care Margin AnalysisStep 1: Enter Number of Customers 200Step 2: Enter PMC Renewal Potential $10,000,000Step 3: Enter Partner Average Renewal Rate 75%Step 4: Enter New Business Forecasted/Takeover $1,500,000Step 5: Enter existing Attach/Renew Rebate % 2%Step 6: Examine and modify fields in the input column (noted in yellow)

SmartNet Smart Care Add'l Profit $ Add'l Profit % InputRenewals $10,000,000 $10,000,000 Avg Renewal Rate $7,500,000 $8,500,000 10%Partner Buy $5,925,000 $6,715,000 23%Profit $1,575,000 $1,785,000 $210,000 13.33%Smart Care Rebates $1,007,250 $1,217,250 77.29% 15%Deduct: Smart Care Support Costs $1,007,250 $210,000 13.33% 15%Discovery of Uncovered Devices, EOS, EOL $42,000 $252,000 16.00% $1,000Attach/Renew Rebates $118,500 $201,450 $334,950 21.27% 1%Reduction in Support Costs (Faster Case Resolution) $28,000 $362,950 23.04% 4New Professional Service Contracts $15,000 $377,950 24.00% 5Additional New Business $1,500,000 $1,875,000 $512,950 32.57% 25%Profit $1,693,500 $2,087,950 $512,950 32.57%

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Tools for Success – Your BDM

• Business Consultant

• Services Model Analysis

• On-Boarding

• Positioning, Packaging and Pricing

• Sales Training

• Joint Sales Calls

• Administration

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Summary

Cisco Smart Care expands business opportunities by providing a proactive services platform on which partners can build the next generation of personalized services.

Improve profitability by transitioning to a service-led model based on higher profit margins and predictable recurring revenue

Differentiate business offering by developing personalized services for commercial customers

Increase customer loyalty by delivering an exceptional service experience

Simplify contract maintenance by leveraging a single contract with auto-renew and auto-add features

Cost-effectively grow service business through a collaborative go-to-market strategy with Cisco