- 1. Sustainable Competiveness Network Enables Connectivity,
Global CompetivenIf You Have Agreed With Everything Ive Said Ive
Clearly FailedJohn ChambersChairman and CEOCisco Systems
2. GAAP ReconciliationDuring this presentation references to
financial measures of Cisco will includereferences to non-GAAP
financial measures. Cisco provides a reconciliation betweenGAAP and
non-GAAP financial information on our website at www.cisco.com
underAbout Cisco in the Investor Relations
section.http://investor.cisco.com/results.cfmForward-Looking
StatementsThis presentation contains projections and other
forwardforward-looking statements regardingfuture events or the
future financial performance of Cisco, including future
operatingresults. These projections and statements are only
predictions. Actual events orresults may differ materially from
those in the projections or other forward
forward-lookingstatements. Please see Ciscos filings with the SEC,
including its most recent filingson Form 10-K and Form 10-Q, for a
discussion of important risk factors that couldQ,cause actual
events or results to differ materially from those in the
projections or otherforward-looking statements. 3. Whats on Your
Mind? Sustainable Competiveness Global Economy Technology
Transitions Social Media / CollaborationVideo / Virtualization /
Data Cent Business Case for IT... IT Innovation / Enable Strategy?
Whats Working with IT? WhatDo Differently? Innovation Operational
Excellence 4. Whats on My Mind? Market Transitions / Tipping
Points- Global Economy - Collaboration / Video- Technology
Transitions - Consumer Business- Virtualization / Data Center Speed
/ Scale / Flexibility / Replication Collaboration / Video
Everything We Do Market Adjacencies 30+ New Business Models
Innovation Business Models / Organization Structure / IT Innovation
AND Operational ExcellenceSustainable Competiveness Countries /
Companies 5. Vision: Countrys Sustainable Competitiveness Education
Infrastructure Innovation Market Transitions Supportive Government
Collaboration First Time 3 Billion People < $3 / Day 6. Common
Vocabulary / Key Themes Market Transitions / Tipping Points
Opportunity / time to change Business / Government Model Vision 5+
years + Strategy 2-4 years Execution 12-18 months 18Challenge
Enable Vision / Strategy / Execution by I 7. arket Transitions in
Global GDP Emerging CountrieCisco Makes All Decisions Vision 5 10
Years100% Developed75%50%25% Emerging18201913 195020052025
Innovation / Operational Excellence / SpeedEmerging No Longer
FollowingSource: The Economist, The New Titans, 16 Sept. 2006 8. T
has proven to be a key enabler of socioeconomic progress
andvelopment, enhancing productivity and therefore economic grow
ucing poverty and improving living standards.- World Economic
Forum, Global IT Re 9. Technology has become thengine of
Globalization - Worlde expansion of ICT is bothse and effect of
globalizationGlobalization has bea main driver of-
WorlOrgantechnological progres 10. Source: SSaudi ArabiaON THE FAST
TRACK TO TOP 1 11. ness-FriendlyImpressive ProgressQuality
vironment Workforce Infrastructu13 Ease Doing 27th Globalusiness
Top 10 most Competitiven14 FDI Inflow competitive economy
Universities 7 Newarketficiency $2.4B educreform 5emove Hurdles
students 12. Ciscos Vision / Strategy / ExecutionNetwork Changes
Way We All Forms Communication /Work / Live / Play / Learn IT into
NetworkNetwork Becomes theEnabling New BusinessPlatform IINModels
Productivity / GrowthMarket TransitionsTechnology and
BusinessCustomer DrivenArchitectureInnovationBuild / Buy / Cross
FunctionalPartner / CollaborateTeamwork / Prioritization Leader In
All Customer Leader in Collaboratio#1 Product Leadership
SegmentsConsumerand Web 2.0Lead Layers 1-7Quad Play Everywhere UC
Leader in Video ArchitConvergence 13. arket
TransitionsOpportunities VideoNetworkNetwork as PlatformNetworkof
Networksone/ Voice / Video1997 2000 20062009 14. Ciscos Growth
Strategy BuildInnovation NotCompetition Competition
MarketMarketTransitionsTransitionsAdjacenciesBuy Partner 15. sis
inence Fear in FinancialMarkets Q1 Phase 1 Acceleration Q4 Tipping
Point Global EconomicMeltdown Q3 Bottom JAN 2008 JAN 2009DEC 2009
16. sis inCisco Focus Over Last 2 Yearence Fear in FinancialMarkets
Speed, Scale, Flexibility, Replicate Q1 PhaseAccelerat Playbook,
Gameplan Most Aggressive in HistoryQ4 Tipping Point
OrganizationGlobal Economic Business ModelsStructure, MeltdownQ3
Bottom Network is Platform for Communications / IT JAN 2008JAN
2009DEC 2009 17. Market Transitio 18. Expanding Expectations of IT
Priorities Aligned Embed Enable CEO Priorities (Business Focus)CIO
Priorities (Technology Focus) Vision / Strategy / ExecutionGrowth /
Productivity / Cost RealignmentNew Business Models Speed /
FlexibilityBusiness and Technology ArchitecturesIT / Program
Progress, CapabilitiesT has gone from enabling our strategy to
being our strate 19. conomy 30+ New Markets+10% ExpensePlaybook
Game Plan Expense Reduction Resource $1.5BReallocation $1B
Organization StructureBusiness Models - C / B / WG - Engineering /
SalesV/S/E 30+ Market Adjacencies +ExecutionGrowth 20.
InnovationOperational Excelle Market Transitions 34X Business
Models V/S/E( OperationalInnovation ExecutionExcellence Process /
PreparationSpeed / Scale / Flex / ReplicableOrganization Structure
Enable Network Platform Collaboration / Web 2.0 PlumberTechnology
Business Partner Collaboration Enables all of the Above 21.
Leadership in Collaborative Utilization6X Files Uploaded Publishers
41X User Growth Rate 86X 22. TelePresenceTelePresence Flagship of
Collaboration Business Models452K Meetings7,800 Meetings / Week674
Rooms 204 Cities 47 Countries60%+ Utilization 10 hour day500
Customers CEOs Get It 23. COP15 COP Bonn GenevaCopenhagen New York
7 TelePresence secure 5 rooms UN locations: Bonn, Geneva, Nairobi,
New York, Danish Foreign Ministry Copenh UN, IGOs, NGOs via Cisco
rooms (~70 globally)Nairob 2006 Cisco Systems, Inc. All rights
reserved. Cisco Confidential 24. For ConsumerSwim w/ DolphinsZip
LiningBear Fishing Family 25. For BusinessCustomer MeetingOn My
MindCompany Meeting Jabber War Room 26. Organization Structure
Collaborative Groups Innovation Operational Excellence 27. Market
Adjacencies 30+Collaboration UC / WebEx / TP Smart Connected
AdvertisingCisco 3.0CommunitiesVideo Smart GridQualityMexico 3.0
Saudi Arabia /Software/Command / Control Brasil / RussiaChina
3.0XaaSStrategyCollab. / Teamwork Cloud MediaSports
/MobilityServices Globalisation
ComputingSolutionsEntertainment(IRIS) RoutersManaged
Virtualization/ Commercial Solutions Green In Space ServicesData
Center AccelerationEmergingVirtualSafety /dia 3.0Small Business
Consumer Countries 2.0Healthcare SecurityGrowth / Execution
((25%...12-17%) 28. Foundation for Business GoalsCollaboration UC /
WebEx / TelePresence45 Days Enabled by Structure /
ModelsSmartConnectedCommunities Advertising Cisco 3.0 4
AcquisitionsVideo Smart Grid Earnings QualityMexico 3.0 Command /
ControlMedia Software/China 3.0 Solutions XaaSCollab. / Teamwork
Strategic Alliances Shareholder MeetingMobilityCloudComputing
Brasil / Russia /Saudi ArabiaServices GlobalisationSports /
Entertainment Strategy CIO Conference (IRIS) RoutersIn
SpaceManagedServicesSolutions Virtualization/Data CenterCommercial
100+ Customer MeetingsAccelerationGreenSmallEmerging Virtual Safety
/India 3.0Consumer HealthcareSecurity Business Countries 2.0Speed /
Scale / Flexibility / Replicate OrganizationalNew Business
Structure ModelsCouncils / BoardsV/S/EWorking Groups 29.
Effectiveness in TransitionsIndustry Market Capitalization$132B
January 1995November 20January 201 $110B$60B $23B1995: Alcatel,
Lucent, Nortel, 2006: Alcatel, Lucent, Nortel, Ciena,Ascend, 3Com,
Bay, Cabletron, Fore, Madge, Shiva, Newbridge, XylanCom, Enterasys,
Extreme, Foundry, Juniper, Redback, Riverstone, Sy 30. Cisco
Networking Academies 165+ Countries / Territories 9,500+
AcademiesWORLDWIDE 20,000+ Instructors 900,000+ Students (20%
Female) 650,000+ CCNA 4 Graduates (15% Female) 2,181+
AcademiesUNITED STATES3,652+ Instructors 137,538+ 137Students (15%
Female) 172,380+ 172CCNA 4 Graduates (12% Female) 200+
AcademiesMIDDLE EAST300+ Instructors20,000+ Students (21%
Female)35,000+ CCNA 4 Graduates (17% Female) 89 Academies239
InstructorsSAUDI ARABIA 13,226 Students (26% Female)2,737 CCNA 4
Graduates (3% Female) 31. BahrainBahrain International Circuitan
environment where technology thrives Powered by Ciscoa winning
combination oftechnology and talent 32. Consider the
Possibilitiesrom BasicsTo Efficiency and Innovatzens: siloed
government Citizens: One Government all needagencies different
ministriesIntegrated ICT frameworkT solution patchworkShared
services, optimized operatioconnected services,
data-sharingCollaborative citizen-centric approap-down government
pushBroadband Experience, Applicationcus only broadband
penetrationIT is part of THE strategys an enableroperation
Collaboration / Internet Phase 2 33. ICT: Gaining Importancep 10
competitiveeconomyThe NCC* Working Recommendations ICT sector
growth 10%... 5 years Access, affordability mobile services all ar
Nationwide broadband penetrationationwide: applications Subsidies
rural broadband penetrationubsidies Competitive telecoms
regulationompetitive CT Enabler and e-government
servicesgovernmentmpetitive Advantage Education awareness
programsducation,Source: * The National Competitiveness Center,
Saudi Arabia