Dan Smoot, Vice President
Accelerating Growth Through the Network as the Platform
Cisco Capital Worldwide Sales
28 June 2011
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 2
Megatrends Driving Changes
Cisco Today
Globalisation & Country Enablement
Cisco Capital Accelerates Problem Solving
and Drives Growth
Cisco Capital Offerings
Wrap-Up and Q&A
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 3
Revitalization of Cities,
States, Countries
Connected Life
Everything as a Service
Aging/ConnectingHypergrowth
700+ Million
Urbanized
3 Billion Will Be
Connected
Capacity Planning
New Business
Models and
Ecosystems
Smart+Connected
Communities
Network as the
Platform
SocialEconomic
Mobility Everywhere
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 4
Geo-Political Concern
InflationaryPressures
Equity MarketsVolatility
Business Confidence
Inconsistent Market Expansion
Global Economy
Kenya has recovered from the triple food, fuel, and financial crises and is experiencing
significant growth fuelled by a new constitution, the telecommunications boom,
macroeconomic management and regional integration among other factors
For the last decade, Tanzania has sustained high economic growth driven by structural
reforms and improvements in economic performance and service delivery
Source: The World Bank Website
East African Economy
Uganda maintains growth by moving towards structural transformation
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 5
“Kenya is at the threshold
of a major demographic transition and rapid urbanization.”- The World Bank
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 6
John Chambers,
Chairman and CEO, Cisco
“ A strong Information and
Communication technology
infrastructure is a key component to
driving socio-economic progress
around the world.
Countries also need sustainable
economic development to stimulate
innovation and job-creation.
The network is the platform in
accelerating economic growth and
improving the lives of citizens.”
–John Chambers,
Chairman and CEO, Cisco
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 7
Changing the way we live, work, play and learn
Worldwide leader in networking for the Internet
Founded in 1984
$40B cash/cash equivalents
$5.3B a year in R&D
141+ acquisitions
86% of products distributed via channel
100,000+ employees and contractors
Headquartered in San Jose, CA
Global presence in 165 countries
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 8
Go-to-Market
Investment Strategy
Innovation as a
means of evolving
through…
technologyInnovation
Build Buy
Partner
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 9
InternalInnovation
Engineers
20,000+
R&D Investment
Annually
$5.3B+
Major Labs
Worldwide
30Patents
Issued
8,000
Patents Filed
Annually
700Build
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 10
InternalInnovation
Source: Yahoo Finance, Company Financial Statements, analyst
estimates used for IBM, Intel and HP QFY10
IBM Microsoft Intel HP
$5.3B
13%
Cisco
R&D as Percent of FY10 Revenue
6%
14%14%
3%
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 11
AcquisitionStrategy
Buy
Market
Acceleration
Market
Expansion
New Market
Entry
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Public 12
Partner
Best In
Class
Long-Term
PartnershipMutually
Beneficial
Go-to-Market / Investment Strategy
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 13
• Expand the Network’s strategic relevance
• Accelerate the speed of innovation and execution
• Scale focus areas into $10B+ businesses
• Drive total shareholderreturn
2012-2016
2001-2011
• Ride the Wave of the IP build-out
• Build portfolio of Advanced Technologies to pull through core
Simplification
1985-2000
Innovation
Integration
Globalisation and Country Enablement are Our Key Pillars
What GlobalisationMeans to Cisco
Cisco’s vision is to become the most
globally relevant company to its
customers, partners and employees
Further our customers’ ability to
capitalize on global market transitions
by offering greater choice of offers,
business models, and ecosystems with
the network as the platform
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 15
SMART+CONNECTED COMMUNITIES
SUSTAINABILITY
ADVANTAGE
Social Economic Environmental
Retail School
Sports &
Leisure
Travel
Health
OfficeHomeGovernment
Telecom Utilities Safety & Security
Building Emergency
Response
Transportation
CLOUD COMPUTING
BORDERLESS NETWORK COLLABORATION
SERVICE DELIVERY
PLATFORMDATA CENTER /
VIRTUALIZATION
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 16
Consumer TelePresence
Common Area TelePresence
Linksys Routers
Digital Signs
IP Video Cameras
Access Control Points
Core and/or LAN Switches
Wireless Access Points
Advisory Services/Technical Services
65,000 residents
300,000 jobs
45M square feet of office space
30M square feet of residential space
10M square feet of retail space
10M square feet of public space
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 17
Marketplace is scrutinizing customers; customers are scrutinizing their spending
Pressure to negotiate better deals and discounts
Banks have tighter lending criteria
Pressure for Service Providers, companies and governments to enhance productivity and elevate service levels
Funding Impact on
Business
Need for
New Business
Models
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 18
Products, solutions and services to better conduct their businesses
Alternative sources of funding
Innovative and flexible procurement models
New financial solutions to enable cloud computing
Their business challenges resolved
Speed of delivery
Ease of doing business
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 19
Cisco Capital is a world-class financial
services organization specializing in
financing networking and communications
solutions by providing innovative, flexible
financial programs to customers and
partners worldwide
Cisco Capital Sales drive growth by
leveraging innovative financing solutions
for our sales force and customers
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 20
Develop deep understanding of customer needs
Drive growth by engineering financing products and solutions
Align with Cisco’s go-to-market and architectural plays
Use lifecycle management
Create new financial models to seize cloud and managed services opportunities
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 21
Mission: Enabling profitable growth through innovative financing
Countries offering
End User Financing
Countries with
Channel Financing
Countries offering
Cisco Certified
Refurbished Equipment
Billion in assets
Employees
Since
the leading provider of financing
for all Cisco solutions
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 22
• World-class Information
and Communications
technology Solutions
• Unmatched IP Expertise
and Innovation
• Comprehensive
Horizontal and Vertical
Architectures
• Technical and Advanced
Services
• Cutting-edge Cloud
based Services
• Trusted Global
Industry Leader
• Network as a platform for
Sustainable Competitive
Advantage
• Aligned to Business
Transformation Imperatives
• Vertical Expertise for
Optimization and Scalability
• IT Finance Specialists Aligned to CFO Needs and Business Priorities
• Partner to Build Financial Business Case: TCO and ROI
• Innovative Financing Models and Active Technology Lifecycle Management
• Strong Financial Resources and Global/Partner Relationships
Financial Decision
Makers
Business
Decision
Makers
Technical
Decision
Makers
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 23
End User Financing
Attractive, flexible
financing options
for Cisco
technology
solutions
Channel Financing
Credit lines and
payment terms
beyond the
standard Cisco net
30 day terms
Cisco Certified Refurbished Equipment
Price competitive
and trusted
alternative
when new Cisco
is not an option
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 24
• New Business
Models
• Cisco Architectures
and the Cloud
• Risk Sharing
• Market-Tailored
Financing Options
• Right Infrastructure
and Governance
• Global Operating
Platform
• Training Programs
• Excellence in Our
Sales Process
• Collaboration with
Functions Across
Cisco
Innovating Financial Solutions
Country Enablement
World-class Sales Organization
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 25
Innovation
and Evolution
of Financing
Solutions
1.Step
Financing
3. Subsidized
Base
2. Multi-term Financing
4.PAY As You
Grow
5.Flexible Demand
Existing Offers New Offers
• New SP business models focused on monetization
• Comprehensive Cloud/Data Center/virtualization
architectures
• Risk sharing offers for lower total cost of ownership
Data Center and Cloud Business Models and Offers
Increasing Complexity/Risk/Price
Lower Complexity/Risk/Price
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 26
Dynamic
Country
Enablement
• Position as a cross-border financing expert
• Leverage network of strong partners to grow business
• Establish Capital as a customer sales and business enabler
• Build the market
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 27
• New services in 9 countries in the eastern
African region
• Enables Wananchi Group to deploy
Cisco’s integrated end-to-end network
technology solutions, encompassing
Cisco’s BN, Collaboration and DC
virtualization solutions
• An important milestone for Cisco’s goal
to deliver advanced communication and
collaboration services
• Cisco Capital is uniquely positioned to
arrange the most competitive and flexible
financing
• Cisco & Wananchi Group will provide
innovative managed/hosted
communications and collaboration
services for the residential, corporate and
government sectors
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 28
“ Cisco Capital is a huge
advantage because it allows a
business to manage their cash
flow on their terms and pay for
technology in the way it makes
the most sense for them and
their budget.”
–Ryan Harper, President,
Cynnex Networks
“ Working with Cisco Capital
allowed us to realize an ROI
from Day 1 and enabled the
university to adapt to future
requirements through flexible
financing arrangements.”
–Richard Constantine
CIO, Swinburne University of
Technology, Australia
“ An upfront investment is usually
unavoidable when it comes to
upgrading the telephone system
for an entire company. Being
able to obtain the initial capital
and to significantly reduce costs
was very appealing.”
–Shigeaki Suzuki, Group Leader, IT &
Engineering. JCG Corporation
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 29
Capital
Changing the Way We Work, Live, Play, and Learn…and the Way Customers Buy!
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