Cisco Corporate Overview. Market Capitalization Leadership January 1995November 2005November 2009...

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Cisco Corporate Overview

Transcript of Cisco Corporate Overview. Market Capitalization Leadership January 1995November 2005November 2009...

Cisco Corporate Overview

Market Capitalization Leadership

January 1995 November 2005 November 2009

Cisco

$10B

Top 12Competitors

$71B

Cisco

$110B

Top 11Competitors

$60B

Cisco

$129B

Top 11Competitors

$23B

Market Share Leadership

0%

20%

40%

60%

80%

100%Digital Video: IPTV

65%Cisco/SA

0%

20%

40%

60%

80%

100%Switching: Modular/Fixed

Cisco/SA70%

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%Security

Cisco

Security

35%

0%

20%

40%

60%

80%

100%Voice

Cisco28%

0%

20%

40%

60%

80%

100%Wireless: LAN

Cisco 54%

0%

20%

40%

60%

80%

100%Storage: Area Networks

Cisco 24%

0%

20%

40%

60%

80%

100%Routing: Edge/Core/Access

Cisco57%

100%

0%

20%

40%

60%

80%

Networked Home

Linksys 45%

0%

20%

40%

60%

80%

100%Web Conferencing

Cisco/WebEx

50%

Secur

ity

Voice

Routin

g: E

dge/

Core/

Acces

s

Digita

l Vide

o: IP

TV

Wire

less:

LAN

Networ

ked

Home

Switchin

g: M

odula

r/Fixe

d

Stora

ge: A

rea

Networ

ks

Web

Con

fere

ncing

Market Share Leadership

28%67% 70%24% 50% 54% 35%57%

50%

65% 70%35%

28% 54% 24%

57% 45%

Only company with leadership across all segments

45%

Integration as sustainable competitive advantage

Diverse product portfolio for long-term stability

Strong Geographical Balance

Q1 FY10 Fiscal Revenue by Geography

U.S. andCanada

JapanEmergingMarkets

AsiaPacific

Europe

$5.0B

(10%) Y/Y

$0.4B

2%Y/Y

$0.9B

(30%) Y/Y

$1.0B

(6%) Y/Y

$1.8B

(15%) Y/Y

Total $9.0B (13%) Y/Y

John Chambers,Chairman and CEO, Cisco

“Cisco’s strategy is based on catching market transitions—the market transitions that affect our customers.  With the proliferation of video and collaborative Web 2.0 technologies, the network continues to evolve from the plumbing of the Internet—providing connectivity—to the platform that will change the way we work, live, play and learn.”

The Network as the Platform…

1997 2000 2006 2008 - 2009

Collaboration/Web 2.0

Network as Platform

Network of Networks

All in One:Data/Voice/Video

Market Transitions

Our strategy is guided by the market transitions that affect our customers.

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 8

3–5 Year Goals Cisco Strategy FY ’10 Initiatives

IntelligentInformation Network

3-5 Year Goals Initiatives

Business Architecture

Technology Architecture

The Network as the Platform…

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 9

networkthe

as the

platform

Mobility

Data

Vide

oV

oice

Data

Mobility Voice

Video

Enterprise ServiceProvider Small CommercialConsumer

Information

Freedom Communications

Entertainment

PublicSector

Cisco: The Convergence Innovator

One Seamless, Transparent Customer ExperienceOne Seamless, Transparent Customer Experience

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 10

Creating Sustainable Differentiation Through Platform Leadership

ProductsProducts

SystemsSystems

Solutions & Business Models

Solutions & Business Models

Architectural PlaysArchitectural Plays

a place where everyone is connected

That’s the Human Network

connect

culture community

employees

customers

Cisco allows people to locally and globally

collaboration

The Cisco Vision changing the way we

to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners

The Mission

work, and learn. SMlive, play,

Innovation

Quality Team

Collaboration / Teamwork

Market Transitions

FunDrive

Change

Empowerment

Open Communication

ProfitContribution (Frugality)

No Technology

Religion

Continuous Improvement/Stretch Goals

Inclusion

Trust/Fairness/Integrity

Giving Back

culture

CustomerSuccess

Business Architecture +Technology Architecture

Network as the Platform

Technology Architecture

Business Architecture

Cisco’s customers

drive our strategy—we deliver long-term relationships and customer satisfaction based on customer needsculture

Cisco 3.0

Global Approach

Services-ledSolutions

cultureemployees

…are our competitive advantage

service1/6

engineering1/3

sales1/3

other1/6

employees

63K+

countries

165+

offices

450+

the idea of

communityno longerculture applies to just

towns

cities

or countries

your

is wherever you need to interact.

community

we believe

belongs to everyone.

SustainableBusiness Practices

Networking Academy

Make Every Connection a Green Connection

Volunteerism

community

Go-to-Market / Investment Strategy

Acquisition

StrategyIn

tern

alIn

nova

tion

Innovation as a means of evolving through…

technologyInnovation

Build Buy

Partner

InternalInnovation

Engineers

20,000+

Major Labs Worldwide

30PatentsIssued

5000

Patents Filed Annually

700Build

InternalInnovation

Source: Yahoo Finance, Company Financial Statements, analyst estimates used for IBM, Intel and HP FY09

IBM Microsoft Intel HP

$5.2B

14%

Cisco

R&D Commitment

R&D as Percent of FY09 Revenue

6%

15%16%

3%

AcquisitionStrategy

Buy

Market Acceleration

MarketExpansion

New MarketEntry

Go-to-Market /Investment Strategy

Partner

Best In Class

Long-TermPartnership

MutuallyBeneficial

1995

1997

1998

1999(cont)

1999

1993

2000(cont)

2007

1996

1999

1994

2000

2001

2002

2003

2004

2005

2005(cont)

2006

2008

Acquisition Summary 2009

John ChambersChairman and CEO

“Cisco is truly dedicated to customer success. Our mission is to shape the future of the internet by creating unprecedented value and opportunity for our customers, partners, shareholders, and employees.”

Cisco’s History of Customer Satisfaction

1996 20091997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Cisco annual survey; measured on a scale of 1 to 5 in fiscal years

5

3

10+ years of history—formally tracking customer satisfaction

Central part of Cisco’s culture

Customer satisfaction tied to the bonus plan

4.01 4.06 4.154.22

4.33 4.33 4.30 4.33 4.37 4.37 4.36 4.41 4.44 4.43

history technologycustomersculturehistory technologycustomersculture

ew olc me tothe human network.