Cisco Go to Market Strategy

Dr. Yasemin YUCEL KARASU

Strategy and Business Development, Regional Manager

09/11/2012

Who we are ?- key milestones, market shares, technology, culture

What are we selling? – key solutions, technologies, and products

Where are we selling? – key segments and theaters

How are we selling? – key messages, distribution channels

Cisco Public 3 © 2011 Cisco and/or its affiliates. All rights reserved.

Computer scientists, Len Bosack and Sandy Lerner found Cisco Systems

Bosack and Lerner run network cables between two different buildings on the Stanford University campus

A technology has to be invented to deal with disparate local area protocols; the multi-protocol router is born

© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Public 4

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. SM live, play,


culture employees

…are our competitive

advantage

service 1/6

engineering 1/3

sales 1/3

other 1/6

employees

72K+

countries

165+

offices

460+


the idea of

community no longer culture applies to just

towns

cities

or countries


your

is wherever you need to interact.

community


network the

as the

platform

Mobility

Data

Vid

eo V

oic

e

Data

Mobility Voice

Video

Enterprise Service

Provider Small Commercial Consumer

Information

Freedom Communications

Entertainment

Public

Sector

One Seamless, Transparent Customer Experience


0%

20%

40%

60%

80%

100%

Digital Video: IPTV

64.2% Cisco/SA

0%

20%

40%

60%

80%

100%

Switching: Modular/Fixed

Cisco/SA 69.6%

0%

20%

40%

60%

80%

100%

0%

20%

40%

60%

80%

100%

Security

Cisco

Security

31.5%

0%

20%

40%

60%

80%

100%

Voice

Cisco

37.1%

0%

20%

40%

60%

80%

100%

Wireless: LAN

Cisco 53.3%

0%

20%

40%

60%

80%

100%

Storage: Area Networks

Cisco 44.7%

0%

20%

40%

60%

80%

100%

Routing: Edge/Core/Access

Cisco 53%

100%

0%

20%

40%

60%

80%

Networked Home

Linksys 23.3%

0%

20%

40%

60%

80%

100%

Web Conferencing

Cisco/WebEx

38%


Q2 FY12 Fiscal

Revenue by Geography

EMEAR APJC

$3.2B

15% Y/Y

$1.7B

11% Y/Y

Total $11.5B 11% Y/Y

Americas

$6.6B

9% Y/Y


Go-to-Market

Investment Strategy

Innovation as a

means of evolving

through…

technology Innovation

Build Buy

Partner


Internal Innovation

Engineers

20,000+

R&D Investment

Annually

$5.8B+

Major Labs

Worldwide

7 Patents

Issued

8,000

Patents Filed

Annually

700 Build

Internal Innovation

Source: Yahoo Finance, Company Financial Statements for latest reported fiscal year

IBM Microsoft Intel HP

$5.8B

13%

Cisco

R&D as Percent of Revenue

6%

14% 14%

3%

13

1997 2000 2006 2008 – 2011

Collaboration/

Web 2.0

Network as

Platform

Network of

Networks

All in One: Data/Voice/Video

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

Differentiation and a competitive edge Improve through

collaboration ICT driving job growth and

competitiveness

Increase Revenue

New

Revenue

Faster

Product

to Market

More

Recurring

Revenue

Reduce Operating

Expenses

Cost

Reduction

Faster

Decision

Making

Smart

Use

Vital

Resources

Reform National

Infrastructure

Skills

Education

Safety

Healthcare

Broadband

Access

Technology

Personalisation

Rapid

Globalisation

Ecological

Footprint

Demographics Business

Volatility


By 2014, 40% of Enterprise IT spend will be Opex 1

Enterprise-class Cloud technologies will be used by

70% of Enterprises in 20122

By 2020, 1/3 of all the data will live in or pass

through the cloud 3

Within the next 3 years around 20% of the

Collaboration market will move to Cloud 4

BY 2016, >50% of Global 1000 companies will

have stored customer-sensitive data in the public

cloud 4

Data sources:

1. Gartner

2. State of the CIO 2011 study, CIO magazine

3. Gartner

4. Cisco internal calculations


In 2012, the number of mobile-connected devices

will exceed the world’s population

Mobile video data traffic will grow nearly 14 times

by 2015, and will represent over half of all data

traffic

Mobile data traffic in Europe will grow more than 10

fold from 2010 to 2015, reaching 7,900 million GB

of data

In 2012, Mobile data services spending has passed

fixed data spending for the first time

By 2015, almost 1 zettabyte of data will traverse the

network annually. Cellular and WiFi traffic will

account for 54% of total IP traffic

The number of things connected to internet will be

50billion by 2020.

An estimated 5 exabytes of unique information

were created in 2008. This is equivalent to 1 billion

DVDs. Just three years later (today), we are

creating 1.2 zettabytes of new information annually.

This is the same as every person on Earth tweeting

for 100 years, or 125 million years of your favorite

1-hour TV show.


Bringing innovation and expertise to solve customers’ business problems:

Link Technology Architecture to Business Architecture

Our Foundation: Routing, Switching, Services Make our networks secure and mobile – Security, Mobility

Collaboration

Focus on large markets • Going through transitions where the network is becoming more critical • Which are drivers of future networking growth

Data Center Virtualization

and Cloud Video

1

2 3 4

5


Enable cloud services including

people-centric collaboration and

other applications

Tailored Solutions for Building Clouds

Rich Ecosystem of Integrated Solutions

Enable customers to deploy tested, best of breed solutions

Enable customers to build and operate private, public or hybrid

clouds

Enabling Cloud Applications/Services by Uniquely Combining the Unified Data Center and Cloud Intelligent Network

Innovative Cloud Services

http://www.mysql.com/

http://www.qualcomm.com/


Bringing innovation and expertise to solve customers’ business problems:

Link Technology Architecture to Business Architecture

Our Foundation: Routing, Switching, Services

Collaboration

Focus on large markets • Going through transitions where the network is becoming more critical • Which are drivers of future networking growth

Data Center Virtualization

and Cloud Video

Customer Transformation

Partner Centricity

Make our networks secure and mobile – Security

Make our networks secure and mobile –Mobility


High touch sales engagement with all

Transformational and Major Customers

Cisco differentiation through focus &

accountability

Resource alignment for architectural relevance

& deep account coverage

High service relevance driving customer

transformation

Customer Transformation is one of the major pillars of the EMEAR GTM and allows

us a clear and concise focus on our Transformational and Major customers


Integration of Partner Led and Commercial

Sales

Alignment of Recruitment, Enablement and

Sales

Broad Market Coverage & Infinite Scalability

Reduced complexity for partner interaction

To reach all of our customers in a more effective fashion, we have now integrated the partner and

commercial teams to balance recruitment, enablement and sales through our partners.

That will drive simplicity and allows us to leverage our partner base to reach more customers.


Customer Led

Partner Led

Partner Led

Customer Led

Characteristics

• High touch accounts in Enterprise, SP and PS

segments

• Comprises Transformational and Major

customers

• Focus is “Deep” account penetration

• CD/AM: Sales leader and

orchestrator/coordinator

• Focus is “Broad” market coverage

• Addresses any customer (ENT, SP, PS and

Commercial) not covered by a Cisco CD/AM

Transformational

Major

Named Partner

Non Named

Partner


Major Customers = Strategic Service

Customers

Major Customers = All other customers

Transformational Customers

All other customers

Customer Led

Partner Led

Customer Led

Customer Led

Customer Led

Partner Led

Partner Led

• Besides Transformational Customers, the service organization focuses on a number of “Strategic Service Customers” to accelerate the transformation of a

select number of Major customers where services relevance has already been established. Both product and services GTM is Customer Led.

• The GTM for the remainder of Major customers is Customer Led from a product perspective and Partner Led from a services perspective


Collaboration/ Teamwork

Innovation

Quality

Team

Market Transitions

Fun Drive Change

Empowerment

Open Communication

Profit

Contribution (Frugality)

No Technology

Religion

Continuous Improvement/

Stretch Goals Inclusion

Trust/

Fairness/

Integrity

Giving Back

culture

Customer

Success

Thank you.