Data Center Innovation News Conference: Partner Summit 2014

Cisco Confidential 1 © 2013-2014 Cisco and/or its affiliates. All rights reserved.

Frank Palumbo

Senior Vice President Cisco Global Data Center Sales

Data Center Innovation


Cisco Data Center Innovation

•  UCS 5th Anniversary Application Centric Infrastructure Soni Jiandani, SVP, INSBU, Cisco

•  Channel Partner Panel Moderator: John Growdon, Sr. Director, Data Center Sales, WW Channels, Cisco

•  Questions and Answers

Press Conference Agenda


March 2009: Cisco Announces Unified Computing System

“A year from now the difference will be UCS is dead and we have had phenomenal market share growth in the networking space.” – HP

“Cisco deserves a lot of credit for its industry chutzpah.”

“The tough part here is that the server buyer has no relationship with Cisco and they don't know why they need one.”

“Cisco data center play reinvents the server.”

“Cisco Systems launches long-anticipated Unified Computing System.”

HP Throws Down the Gauntlet Against Cisco


Timing Is Everything

Source: www.gartner.com/newsroom/id/1059813

Worldwide IT Spending On Pace to Decline 6 Percent In 2009

Latest forecast shows spending declines across hardware, software, IT services, and telecommunications sectors


#2 Worldwide market share in x86 blades

3,850 UCS channel partners

30,000+ Unique UCS customers

90 World record performance benchmarks to date

More than 75% of all

customers have invested in UCS Fortune 500

Cisco Unified Computing System

Sources: IDC Worldwide Quarterly Server Tracker, Q3 2013, December 2013, Revenue Share, Cisco Q1FY14 earnings results (Data Center Revenue is defined as Cisco UCS and Nexus 1000V)

Cisco Confidential 5


Cisco Channel Partners Embraced UCS

Channel partners understood the value of UCS - invested in training and infrastructure. Huge contributor to UCS success. Result: expanded practice. Value delivered to customers.


-19%

-6% 3% -12%

39%

-15% -4%

UCS Leads Server Growth (Y/Y) Q1 CY13 To Q4 CY13

$12.7B $13.2B $8.3B $2.2B $1.8B $49.7B

Market

Source: IDC Server Tracker, February 2014, WW vendor revenue, All Servers. Revenue is cumulative 4 quarters (Q1CY13 – Q4CY13)

$2.3B


Converged Infrastructure

Hypervisor

Compute

Network

FlexPod, Vblock, VSPEX, and more

Storage

Cisco UCS Director

End-to-End Infrastructure Automation


UCS Invicta Series: flash memory to accelerate applications with UCS

Cisco UCS Innovation Continues

Address new data velocity and scale

requirements

Flash-based application

acceleration

Servers

Flash Memory UCS Network &

Storage Access


Cisco Unified Computing System Delivering “Business Outcomes” For Over 30,000 Customers Worldwide

90% World-Record Performance Benchmarks

84% Reduce

Provisioning Times

61% Reduce

Management Costs

54% Reduce Power

and Cooling Costs

77% Reduce Cabling

“Our Cisco Unified Computing System decision is a game-changer.”

Wes Wright CIO, Seattle Children’s

“We can offer leading solutions to our customers and continue to expand our business.”

Martin Breslin Infrastructure Architect, SEI

“With Cisco UCS, we can adapt much more quickly to user demand.”

Mark Adams VP, Information Technology, HireRight

Sources: Cisco UCS Changing the Economics of the Datacenter, Customer Case Studies, Cisco UCS Performance Benchmarks

Greater Business Agility

Lower Operating Expenses

Reduced Costs/ Complexity

Lower Computing Cost

Faster Fact-based Decision Making


Application Centric Infrastructure Soni Jiandani, SVP, INSBU, Cisco


What’s New Today ACI Expansion New Nexus 9504, 9516 enables ACI scale out using

fastest and lowest latency 40G platform in the Industry

Cloud Provider Portfolio

New Nexus 3164 – 64 x 40G Line Rate, providing world’s largest cloud providers scale to 100,000’s servers 90+% Cloud Providers footprint powered by Cisco Nexus

Customer Success Telstra chooses Cisco for Cloud Services with ACI

Cloud Automation and ACI

Enabling 2M+ Cisco Certified Professionals for cloud automation and ACI

Channel Success New Channel Incentive, Enablement and ACI Practice Development Programs


78% Network is even more critical to delivering applications than a year ago*

The Network Is the Information Broker for All Applications

Applications Are Changing

Type Big data, distributed, mobile

Consumption Cloud – public, private, hybrid

Delivery Any where, any time, any device

* Cisco Global IT Impact Survey


Physical, Virtual, ACI – Cloud Ready

!  Integrated Network Virtualization – Routing + Switching

!  OpenFlow !  Open Source

!  Open !  No Virtual Machine Tax !  Any Hypervisor !  Physical & Virtual !  Full Visibility

!  Programmability !  Modernized NXOS

DC PODs DC Core

EXISTING 2, 3-TIER DESIGNS APPLICATION CENTRIC INFRASTRUCTURE

SDN OVERLAY MODEL

APIC


Network Language

Network vs. Applications – Two Different Languages

Application Language

•  Rapid Deployment !  Grow, Shrink, Move as

Needed !  Compute, Storage, and

Network

•  Scalability •  Stability •  Reliability •  Performance

Any Application Any Time Anywhere

Requires an Application Centric Infrastructure


Application Centric Infrastructure – Summary ACI Vision: Rapid Deployment of Applications onto

Networks with Scale, Security and Full Visibility

•  OPEN RESTFUL APIs •  CENTRALIZED POLICY MODEL •  OPEN SOURCE

CONTROLLER

APPLICATION CENTRIC NETWORK

ABSTRACTION NEXUS 9500 and 9300


Next Evolution ACI

The Future of Networking

‘Table Stakes’ SDN

‘Table Stakes’ Network Virtualization

Business Relevance Through Application Centricity

Automation

Centralized Provisioning

Simplification

App Agility

Simplification

App Agility

Automation

Simplification

App Agility


Automation

Centralized Provisioning

Simplification

App Agility

The Future of Networking

Deliver New Revenue Streams Faster

Risk and OpEx Reduction

Lowered OpEx

Reduced Risk

Reduced CapEx

APIC


Continued History of Innovation

Cat 5K/6K

MDS-SAN Unified Fabric + FEX + UCS

Leading the Industry in Data Center Innovation with Market Inflections

Nexus 9K + ACI Over 500 Customers in Pipeline

APIC


Nexus 9516 •  Modular platform

•  21 Rack Units, 16 Line Card Slots

•  Highest non-blocking port density •  Wire rate 576 ports x 40 Gbps •  Wire rate 2,304 ports x 10 Gbps

•  Power efficiency •  11 W per 40 Gbps port •  No mid-plane - Unobstructed front-to-back airflow, future

proof 100G Ethernet, 15-20% more power efficient vs. competition

Orderable: Apr 2014 FCS: Mid-CY14


Nexus 9504 Orderable: March 28, FCS: April 2014 •  Modular platform in a small footprint

•  7 Rack Units, 4 IO Modules

•  High non-blocking port density •  Wire rate 144 x 40 Gbps •  Wire rate 576 x 10 Gbps

•  Power efficiency •  14 W per 40 Gbps port •  No mid-plane - Unobstructed front-to-back

airflow, future proof 100G Ethernet, 15-20% more power efficient vs. competition

•  VXLAN, NVGRE (virtual/overlay networks) bridging, routing and gateway – built in to ASICs


Industry-Leading 40G port density in 2RU Performance Flexibility Programmability

•  5.12 Terabits/sec in 2RU •  High density 10/40G

64 ports of 40G 256 ports of 10G

•  Low latency •  48MB buffer •  64-way ECMP

•  Flexible port modes 40G or 4x10G

•  Copper / Fiber cabling Bidi, AOC, QSA, SR4

•  AC, DC power •  Forward & Reverse air flow

•  NX-API •  Linux Containers •  XML/JSON RPC •  Python •  OpenFlow •  Puppet/Chef •  BASH access

Introducing Cisco Nexus 3164Q Designed for MSDC’s and Big Data

Orderable: Apr 2014 FCS: Mid-CY14


Application Centric Infrastructure Progress and Momentum

Application Centric Infrastructure

New Nexus 9K Platforms Nexus 9000 Momentum

0%

20%

40%

60%

80%

100%

15% 7%

26%

19%

13%

20% Other

APJC

EMEAR

US Commercial

US SP

US Enterprise

PIPELINE >500 CUSTOMERS

CUSTOMERS ACROSS DIFFERENT

SEGMENTS

RAPID CHANNEL PARTNER SCALE

ACI Ecosystem Update

NEW PARTNERS

Early Design Wins in all Major Geographies and Segments: Enterprise, Cloud, Service Providers, Public Sectors, Commercial


Software-Based Network Virtualization !  Lacks Scale, Visibility, Security !  More Complexity

!  Decreases Reliability !  Disjointed Overlay and Underlay

Application Centric Infrastructure !  Network Virtualization !  Open Single Point of Control and Management

(Policy) !  Application Policy and Automation !  Physical and Virtual !  Scale and Security

!  Visibility and Troubleshooting !  Simplicity

Future Open Model Today’s SDN Datacenter Model

A New OPEN Operating Model Is Required

Cisco Confidential 25 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Source: * Deutsche Bank 9/27/2013: “Whitebox Switches Are Not Exactly a Bargain”; ASP for 64 port 10GE switch ** Cisco IT

IMPLICATIONS: CAPEX AND OPEX CISCO DRIVING INDUSTRY LEADING TCO

CAPEX SWITCH NO WHITEBOX ADVANTAGE

3 YEAR CAPEX ToR EXAMPLE

$5,500*

$4,000*

Whitebox $2,500

Cumulus SW $1,000 per year

Branded Switch w/ integrated HW/SW

+37.5%

CAPEX OVERLAY VM TAX FOR OVERLAY SIGNIFICANT HIGHER

THAN A WHOLE NEW NETWORK

10 VM/10G SWITCH PORT

x $10 PER VM

PER MONTHS =

$100 PER VM PER MONTH

NETWORK OPEX**

35% OPEX SAVINGS WITH ACI

CAPEX 27%

OPEX 73%

BEFORE ACI

TCO 75% TOTAL COST OF OWNERSHIP

SAVINGS

NETWORK VIRTUALIZATION +

MERCHANT SWITCHES

$40 OPEX*

$100 VM TAX

$14 NETWORK $25 OPEX

$15 NETWORK

$154

$40

APP CENTRIC

CISCO


Cisco IT – ACI TCO Savings Network Operations & Management Network Provisioning

CAPEX Savings 25%

Power 45%

Space 19% 12 %

Optimization 20 %

Optimization

Provisioning SLA Improvement

Incident Management

Problem Management

Event Management

4x Increase in Bandwidth (10Gbs to 40Gbs)

Data Center Network Compute Storage

* Single Fabric * Single Fabric

Data Center Access

Access Control List

Local/Global Server Load Balancing

21% Cost Savings

Service Management

58% Savings in Automation


Cisco IT ACI –TCO & Savings Summary

OPEX

CAPEX

Pre-ACI Post-ACI

46% Savings

41% Overall

25% Savings

OPEX

CAPEX


Cloud Automation with Cisco ACI

SINGLE PANE OF MANAGEMENT FOR HYBRID CLOUD

END-TO-END AUTOMATION OF APPLICATION AND LIFECYCLE MANAGEMENT

AUTOMATED PROVISIONING OF COMPUTE, NETWORK,

STORAGE

SUPPORT FOR CONVERGED

INFRASTRUCTURE

APIC

L4-7 SERVICES COMPUTE STORAGE VIRTUALIZATION


New Nexus/ACI Channel Acceleration and Enablement Programs

Nexus New Account Breakaway

SeedIT

Opportunity Incentive Program

New

New

New Nexus 9K Standalone Enablement

Over 1000 Partners Trained Globally

ACI Training

4 New Cisco Certified Professional Programs


Partner Panel Discussion: Channel Views on Data Center Moderator: John Growdon, Sr. Director, Data Center Sales, WW Channels, Cisco

Panel members Robert M. Olwig, Vice President, Corporate Business Development,

World Wide Technology, Inc.

Chris Gabriel, Chief Technology Officer, Logicalis Group

Waheed Choudhry, President & COO, Nexus

Mr. SONG, CEO, ECCOM Network System, Co. Ltd.


Questions and Answers


Cisco Unified Computing System Platform For IT Innovation

Orchestration Ready via Open API

Fabric-Centric Design Scales

Simply and Efficiently

Automates IT Processes with

Configuration by Policy

Consolidates Monitoring and Troubleshooting

Ideal Infrastructure for ALL Application Requirements

Physical Virtual Blade Rack

Local Storage Centralized

Single Tenant Multi-Tenant Single DC Multi DC

CISCO UCS

CLOUD

PHYSICAL VIRTUAL


Cisco UCS After Five Short Years

Technology Partnerships Channel Acceleration Real Innovation

IDC Worldwide Quarterly Server Tracker, Q1 2013 Revenue Share, May 2013

“Leader” in Gartner Magic Quadrant for

Blade Servers #2 in World Wide x86 Blade Server Market

23,000 Number of UCS Customers 5400 900 30,000

2010 2011 2012 2013 2014 2009

3,850 Partners $2B+ UCS Business

Growing Partner Data Center Practices

Simplify the Total Solution Established and

Emerging Players Integrated and Converged

Infrastructures

Focused on Customer OPEX Application Centric

vs. Hardware Centric ASIC-Level Virtualization

Technology

Growth Drivers


!  Reduce the complexity that drives OPEX

!  Get the most out of virtualization

!  Automate and move faster

!  Get ready for cloud

Cisco UCS: The Right Solution At The Right Time

Application Centricity

Platform for IT Innovation

Operational Simplicity

Customer Needs in 2009 Help me:

Virtualization

Network & Storage Access

Cisco UCS

Compute