Sesh Tirumala

Vice President, IT

April 13th 2017

Cisco’s Journey

DigitalTransformation

Agenda

Cisco Landscape

Why the Move to Digitization?

Digitization Use Cases

Q&A

Cisco LandscapeSetting the Context

Cisco Snapshot

192 Acquisitions since 1993

19,000+

Patents

$48.7B

Revenue

#1 or #2in most market

segments

70,000+

Employees

$71.8B

Total Cash

60,000+

Channel

Partners

16,000 Engineers

$37.2B

Product Revenue

380 global sites in

165+ countries

$11.9B

Services

Revenue

32Years Old

Evolution of the Network

SecurityIoT and

Applications

Next-Gen Data Center, Cloud &

Analytics

Service Provider

Cisco’s Key Focus Areas

97Countries

570Offices

141,766Connected

Stakeholders

6,769LAN Switches

12,013UCS Blades

29.4MWData Center

Capacity

89PBOverall Usable

Storage

46,903Production

Virtual Machines

154Services

203,702Connected Devices

4,379Routers

DNS 5.8BDNS Records/day

71,539Employees

Cisco at a Glance

Territory Manager

Billing and Revenue

Management

Product LifeCycle

Analytics

Enterprise Inventory &

Service Level Optimization

Service Contracts and

Install Base Management

Fulfillment Experience

Fulfill to Activate Invoice to Cash

Service & Consumption Experience

Monitor to Usage IB / Contract Mgmt

Issue to Resolution

Acquisitions

Data & Analytics

Knowledge Management Customer Success Management

Common

Technologies

Market to

Demand

Lead to

Opportunity

Quote to

Order

Selling & Buying Experience

Cisco Technology Landscape Business Process Category (Outside-In View)

Simplification: Business Services Architecture

Change ManagementDefine / Measure Success

Services Taxonomy

Organizing principle

Services Roles

Responsibility and accountability

Services P&L (Cost and Value)

CostBill of IT to deliver

a capability

ValueClient view of

capability

Business Partnership

Business Partnership /

Aggregate Value of IT Services

Services Funding

Budget

Strategic

Investment

Planning

Organizational

HealthArchitectural

ReviewsServices

Review

Guillermo DiazChief Information Officer

Rebecca JacobyChief Operations Officer

Kevin BandyChief Digital Officer

Why the Move to Digitization?

Our Digital Transformation

Value Reimagined | Work Reimagined

New Customer Experience

New Business Models

Security Everywhere

CDaaS - InnovationDigitizing Planning to Release Process | Continuous

Delivery Toolchain | 80% Agile – 20% Waterfall Po

licy

CiscoVirtualization

Cisco Tetration

Po

licyDaaS - Insights

Analytics | Visualization | Virtualization |

Data Catalog of Services | Role Based Access

4

Po

licy

PaaS - AgilityOrchestration Foundation | Automation | Open

and API Driven | Removed 83% Cost Structure

3

Cisco

UCS

Cisco

Security

Cisco

UC&V

Cisco

Network

Storage

ACI

IaaS - SimplicityCatalyst of Service Architecture | Simplified Infrastructure

Provisioning | Programmable & Policy Based

2

5

Po

licyAPPaaS – Outcome Focus

Mobile | Web | Machine | Cloud Native |

Contextual Collaboration

Cloud Native

IOE/Policy

SaaS

ERP

Value

Exchange1

Cisco NSO

Cisco

Network

Cisco

Network

Cisco

Network

Spark

TRANSFORM Everything We Do

Simplification Automation Security AnalyticsContinuousInnovation

5 DIGITAL PRINCIPLES

Digitization Use Cases

Digitizing Renewals – How it’s Done

Qualified Opportunities ManagementPre-Quoting &

Deal Approval

Quoting &

Ordering

Co

llab

ora

te

Reconcile Assets

and Entitlements

Price Modeling

(what if scenarios)

Historic deals

approved and the

view to that Analytics to support…

Cisco Impact

(Partner integration)

i

Op

po

rtu

nity

Qu

alif

ica

tio

n

Upgrade and

downgrade

Kn

ow

yo

ur

Cu

sto

me

r

Actionable

Opportunity

Asset

Information

Digital Seller

View

Deal seamless

routing

Improved

Validations

Simple Q2O

process

Deal Approval

Rules

Optimization

Proactive management and

maintenance of

customer/partner entitlement

access

Self-Service Contract

Management

Auto entitle based on

business rules

Smart Account

Management

Opportunity

business rules

Cross sell upsell

view

Historic

Purchase View

Contact

Information

Accurate Tagging for

Renewals and Follow on

Std & Non-Std Billing based

on Customer’s Invoicing

Requirements

Optimized revenue

allocation/compensation for

renewals and follow-on

Invoicing and Billing Options

Partner Metrics

Partner Feedback

Goal Setting

Sales Comp

Entitlement &

Contract ManagementBilling & Invoicing

Sales Comp &

Partner Rebate

Qu

alifie

d R

en

ew

als

Op

po

rtun

ities

IB/S

A

Data

Foundation

Custo

me

r

Re

gis

try

Lic

ensin

g

Suppo

rt

Sa

les

Co

ve

rage

Pa

rtne

r

Da

ta

Po

rtfolio

/

Co

nfig

Co

llecto

r

Minimum Duration

Renewal Quote Protection Multiple End Users

Takeovers

Periodic Billing Schedule

Summary Quoting

Service Contract Start date

Policy Simplification

Introduce common definitions, ability to tag data and enrich with partner data.

Provide visibility to

actionable insights through

clean data and advanced

analytics.

Deliver simplified next generation quoting, ordering and

management experience.

Expand upon consumption

based, auto-renew business

models.

Simplify through policy.

Simplification

AutomationConversational Commerce – Digital Assistant

Security Everywhere

4TB

Data Collected

& Analyzed

NetFlow

Analyzed per/day

(Lancope)

15B

Traffic Inspected

per/day

27TB

Alerts per/day

(NG-IPS)

1.5M

Network

Events

1.7T

10K

Files Analyzed

per/day

(ThreatGRID)

5.8B

DNS Records

per/day

6M

Web Transactions

Inspected per/day

(WSA)

425

Devices Detecting &

Preventing Incidents

4.1M

Email Transactions

Blocked per/day

(ESA)

Security

One day defending Cisco…

During

Before

After

1

2

3

Discover

Enforce

Harden

Detect

Block

Defend

Remediate

Scope

Contain

(Real Time Predictive Score + Prescriptive measures)

Augmenting Cisco Support with Analytics

Avoidable RMA IdentificationCategorization of ARMAs

Predicting ARMA

+

Cisco Spark Application AI Bot

Identification &

Categorization

Prediction

Prediction Model

Backend Engine

A-RMA viewDecision Cockpits

Analytics Consumption

Analytics Identified “Avoidable” Returns

Providing Metrics / Insights into root causes

Digital assistant for Support to minimize “Avoidable” Returns

Value Generated

Analytics

Continuous Innovation

CultureMultidisciplinary

Labs

Business aligned operating model, people and capabilities(technical depth / engineering skillsets)

Agile Method

and Mindset

Modern

DevOps Tool

Chain

Test and Learn

on Cloud

Micro-Service-

Led Architecture

and App

Consolidation

Shared

Components

Data-Centric

Management

Model

ContinuousInnovation

Continuous Delivery Analytics

ApplicationAre we baking CD Practices and Quality while building the Software?

DeveloperAre we measuring Developer and Vendor Software Contributions?

SecurityAre we baking Security while building the Software?

PlatformAre Continuous Delivery Platforms and Practices pervasive?

Technical

LeadsSenior

Execs

Software

Developer

Senior

Execs

Security

ArchitectSenior

Execs

CoDE

TeamSenior

Execs

Analytics

Accelerating Digital Skills

IT Skills ReportDigital

Competencies

IT SkillsAcademyEducation, experience,

exposure offerings

Progress

Needed for the

future

Top 10 skills needed for

each competency area

SAFE / Agile: ~ 355 Scrum Masters

Data Scientists: ~ 95 graduates

Security: White Belts: 1470

Green Belts: 226

Engineering Cloud Training: 123

Leading Change

Clear Vision

Building a sense of urgency

Iterative Execution

Architecture Leadership

Culture of innovation / Risk taking

Lessons Learned

“If the rate of change on the

outside exceeds the rate of

change on the inside, the

end is near.”

- Jack Welch