© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential

WIM ELFRINK, CHIEF GLOBALISATION OFFICER13 February 2008

How Successful Leaders Think

Challenges for the Next Five Years

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Where are all the people going to be?

2050

1803

5222

768

392632

2000

3680

796

729305

520

USA

SouthAmerica

AfricaAsia

Europe

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Back To The Future

Source: World Bank/Angus Maddison. The World Economy: Historical StatisticsPricewaterhouseCoopers/Michael Milken Institute, Chairman, Fastcures/Goldman Sachs

The World’s Top 10 Economies

205020051820China 28.7%India 16.0%France 5.4%U.K. 5.2%Prussia 4.9%Japan 3.1%Austria 1.9%Spain 1.9%U.S. 1.8%Russia 1.7%

U.S. 28.4%Japan 10.6%Germany 6.4%UK 5.0%France 4.8%China 4.4%Italy 3.9%Spain 2.6%Canada 2.5%India 1.7%

China 25.6%U.S. 20.3%India 16.0%Japan 3.9%Brazil 3.5%Russia 3.4%Indonesia 2.3%U.K. 2.2%Germany 2.1%Mexico 2.0%

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Greatest Economic Shift in 100 Years

*At purchasing power paritySource: The Economist, “The New Titans,” 16 Sept. 2006

1000 1820 1913 1950 2005 2025

50%

75%

25%

1500

100%

DevelopedEconomies

EmergingEconomies

Share of Global GDP*

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New Era of Wealth

Mobility Mobility Will Be the PlatformWill Be the Platform

500M People Urbanised 500M People Urbanised Over Next 5 YearsOver Next 5 Years

Expanding Middle Class Expanding Middle Class Creates Buying PowerCreates Buying Power

Managed/HostedManaged/HostedServices will Connect Rural AreasServices will Connect Rural Areas

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Market Making Opportunities

Dubai

Singapore

India

Saudi Arabia

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Why India? India Epitomizes the Human Network

Culture of tolerance, diversity and partnership

Proximity to innovation and growth

Skilled partners with global capabilities

Judicial system enforces IP protection laws

Skilled English-speaking

talent at scale

Economicgrowth—top 5

economy by 2025

Fastestgrowing young

population

The world’slargest

free market

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Why India? Proximity to Growth, Innovation and Talent

Reaching 70% of the World’s Population

Cisco East

Cisco West

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A Global Innovation Hub

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Global R&D

Trade

The Evolution of Globalisation

Globalisation 1.0 (started 100’s of

years ago)

Virtualisation of the Corporate

Brain

Global Manufacturing

Globalisation 4.0 (2006-beyond)

Globalisation 3.0 (1990’s)Globalisation 2.0

(1980’s)

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Head QuartersPresident / UK PM

Germany

Dubai

AzerbaijanEgypt

China

IndiaSaudi

Arabia

D.C.

Global Collaboration / Web 2.0

San Jose

UkraineBoston Japan

India

London

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Challenges

Command & Control to Collaboration

Pervasive Education

Labor Arbitrage To InnovationCost Savings are a Bonus

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