OC-BD-Strat-0101-1 © 2001, Cisco Systems, Inc. High growth through strategic partnerships Mobile Computing and Networking Venture Capital Session July.

OC-BD-Strat-0101-1© 2001, Cisco Systems, Inc.

High growth through High growth through strategic partnershipsstrategic partnerships

Mobile Computing and NetworkingMobile Computing and NetworkingVenture Capital SessionVenture Capital Session

July 17July 17thth, 2001, 2001

High growth through High growth through strategic partnershipsstrategic partnerships

Mobile Computing and NetworkingMobile Computing and NetworkingVenture Capital SessionVenture Capital Session

July 17July 17thth, 2001, 2001

Presentation_ID

Emmanuel Roger Emmanuel Roger EMEA Business Development EMEA Business Development

[email protected]@cisco.com

www.cisco.com OC-BD-Strat-0101-2© 2001, Cisco Systems, Inc.

Cisco Leadership StrategyCisco Leadership StrategyCisco Leadership StrategyCisco Leadership Strategy

CoreCompetency

InternalDevelopment

JointDevelopment

JointMarket/

OEM

Acquire


Business Development @ CiscoBusiness Development @ CiscoBusiness Development @ CiscoBusiness Development @ Cisco

To infuse technologies and products

into Cisco that fuel growth

over the next five years

3Presentation_ID © 1999, Cisco Systems, Inc.


Strategic Growth RelationshipsStrategic Growth RelationshipsStrategic Growth RelationshipsStrategic Growth Relationships

JointMarketing/

Sales/OEM

Alliance/JV

Investment

Acquire

Strategic ValueStrategic Value

Com

mit

men

tC

omm

itm

ent


Strategic Alliance MissionStrategic Alliance Mission

“Drive the Internet Economy by

• Accelerating Cisco and strategic partner technologies/ products/services adoption;

• Developing partnerships which grow and effectively manage Cisco assets and those of our strategic alliance partners,

• Providing unique value to our collective Customers.”


Cisco Named Strategic Alliances (active in EMEA)

Cisco Named Strategic Alliances (active in EMEA)

Hewlett PackardItaltel

AC

Oracle


Alliances SolutionsAlliances Solutions

•

T e c h Allia nc e se de visc he r

C S I/N I Allia nc e sm plottie r

E - S oftw a re a llia nc e sd n ik o la tos

Ope ra tiona l Jo in t V e nture sIta lte l a llia nc e - T BH

G ove rne m e nta l Allia nc e sT de jongh

Allia nc e M a rk e ting

S tra te g ic Allia nc e spturc h i

D ir Allia nc e s

W ire le sshm a k ija r

Optic a lbhe inric

S P V oic e /S igna llinge roge r

E nt V o ic e /AV V IDk doe rpe l

C onte nt & AS Pbpilo

N e tw ork M a na ge m e ntT BH

Applic a tionsT BH

C LOB T e c hnolog ie sT BH

N e w M a rk e ts & T e c hnologyoc ogne t

D ir Bus D e v

S o lu tions E ngine e ringAue rbe c k

Inc uba tion E ngine e ring

H a rdw a re E ngine e ring

S oftw a re E ngine e ring

T e c hnology C e ntrem luc c h in

M gr T e c hno C e nte r

Busine ss D e ve lopm e ntpshre ve

M gr Bus D e v

Le ga l

vpa ndurkM gr Bus D e v

C orpora te F ina nc e

lrusse llM gr Bus D e v

T a x

T BHM gr Bus D e v

BU /Func tiona l R e pre se nta tive s

T BHM gr Bus D e v

Ac quisition In te gra tion

T BHM gr Bus D e v

H R

IT

S P S a le s

E /S M B S a le s

W PR

M FG

Fina nc e

T ra in ing


D ir, BD E M E A

E M E A Busine ss D e ve lopm e nt & Allia nc e s

• Thin WAP software client to provide

microWebBrowser, email, calendar,….

GSM, HSCSD, GPRS, EDGE, UMTS, ...-> Bandwidth & flexibility

Radio Access layerMobile IP

Infra

Internet-ISP

Mobile Focused Content

HTML Web& Data Base

WAP ProtocolGW

Mobile Web Portal

Svcs Platform

• End to End Internet Access & Backbone

Infrastructure


C S I/N I Allia nc e sm plo ttie r

E - S o ftw a re a llia nc e sd n ik o la tos

O pe ra tiona l Jo in t V e nture sIta lte l a llia nc e - T BH




D ir Allia nc e s


O ptic a lbhe inric

S P V o ic e /S igna llinge roge r




Applic a tionsT BH

C LO B T e c hno log ie sT BH

N e w M a rk e ts & T e c hno logyoc ogne t

D ir Bus D e v

S o lu tions E ng ine e ringAue rbe c k

Inc uba tion E ng ine e ring

H a rdw a re E ng ine e ring

S oftw a re E ng ine e ring

T e c hno logy C e ntrem luc c h in



M gr Bus D e v

Le ga l




T a x

T BHM gr Bus D e v


T BHM gr Bus D e v

Ac qu isition In te gra tion

T BHM gr Bus D e v

H R

IT

S P S a le s

E /S M B S a le s

W PR

M FG

Fina nc e

T ra in ing

Ac qu isition In te gra tion

D ir, BD E M E A









D ir Allia nc e s


Optic a lbhe inric





Applic a tionsT BH



D ir Bus D e v

S olu tions E ngine e ringAue rbe c k




T e c hnology C e ntrem luc c hin



M gr Bus D e v

Le ga l




T a x

T BHM gr Bus D e v


T BHM gr Bus D e v


T BHM gr Bus D e v

H R

IT

S P S a le s

E /S M B S a le s

W PR

M FG

Fina nc e

T ra in ing


D ir, BD E M E A


T ech Alliance se devische r

C S I/N I Allianc esm plottie r

E - S oftw are a llianc esd n ik o la tos

Opera tiona l Jo in t V enturesIta lte l a lliance - T BH

G overnem enta l AlliancesT de jongh

Alliance M arke ting

S tra teg ic Allianc espturch i

D ir Allia nces

W ire lesshm ak ija r

Optica lbhe inric

S P V oic e /S igna llingeroger

E nt V oice /AV V IDkdoe rpe l

C ontent & AS Pbpilo

N etw ork M anagem entT BH

Applic a tionsT BH

C LOB T echnologiesT BH

N ew M arke ts & T ec hnologyocognet

D ir Bus D e v

S olutions E ngineeringAuerbeck

Incuba tion E ngineering

H ardw are E ngine ering

S oftw are E ngine ering

T echnology C e ntrem luc chin

M gr T echno C ente r

Business D eve lopm entpshreve

M gr Bus D ev

Lega l

vpa ndurkM gr Bus D ev

C orpora te F ina nce

lrusse llM gr Bus D ev

T ax

T BHM gr Bus D ev

BU /Func tiona l R e prese nta tives

T BHM gr Bus D ev

Acquisition In tegra tion

T BHM gr Bus D ev

H R

IT

S P S a le s

E /S M B S a les

W PR

M FG

Finance

T ra in ing

Acquisition In tegra tion

D ir, BD E M E A

E M E A Busine ss D eve lopm ent & Allia nces

Tech Alliancese devischer

CSI/NI Alliancesm plottier

E - Softw are alliancesd nikolatos

Operational Joint VenturesItaltel alliance - TBH

Governem ental AlliancesT dejongh

Alliance M arketing

Strategic Alliancespturchi

Dir Alliances

W irelesshm akijar

Opticalbheinric

SP Voice/Signallingeroger

Ent Voice/AVVIDkdoerpel

Content & ASPbpilo

Netw ork M anagem entTBH

ApplicationsTBH

CLOB TechnologiesTBH

New M arkets & Technologyocognet

Dir Bus Dev

Solutions EngineeringAuerbeck

Incubation Engineering

Hardw are Engineering

Softw are Engineering

Technology Centrem lucchin

M gr Techno Center

Business Developm entpshreve

M gr Bus Dev

Legal

vpandurkM gr Bus Dev

Corporate Finance

lrussellM gr Bus Dev

Tax

TBHM gr Bus Dev

BU/Functional Representatives

TBHM gr Bus Dev

Acquisition Integration

TBHM gr Bus Dev

HR

IT

SP Sales

E/SM B Sales

W PR

M FG

Finance

Training

Acquisition Integration

Dir, BD EM EA

EM EA Business Developm ent & Alliances

EmailApps








D ir Allia nc e s


Optic a lbhe inric





Applic a tionsT BH



D ir Bus D e v

S o lu tions E ngine e ringAue rbe c k




T e c hnology C e ntrem luc c h in



M gr Bus D e v

Le ga l




T a x

T BHM gr Bus D e v


T BHM gr Bus D e v


T BHM gr Bus D e v

H R

IT

S P S a le s

E /S M B S a le s

W PR

M FG

Fina nc e

T ra in ing


D ir, BD E M E A


Oracle / CAPG-EY /CiscoMobile Eco-Systems


Cisco’s Investment FrameworkCisco’s Investment Framework

Enabling TechnologiesEnabling Technologies

Demand CreationDemand Creation

Synergistically Growing each Partners’ Revenue BaseSynergistically Growing each Partners’ Revenue Base

Enhancing Products with Complementary TechnologiesEnhancing Products with Complementary Technologies

Minority Equity Investment

Technology LearningTechnology Learning

Building Knowledge Base of Future TechnologiesBuilding Knowledge Base of Future Technologies


Merger/Acquisition StrategyMerger/Acquisition Strategy

Shared VisionShared Vision

Short-Term“Win-Win”Short-Term“Win-Win”

Long-Term “Win-Win”Long-Term “Win-Win”

ChemistryChemistry


Acquisition DriversAcquisition Drivers

• Time-to-market

• Best-of-breed technology/products

• Acquire hot new talent

• Leverage Cisco distribution channel

• Get key component for current projects

• A&D vs. R&D


Integration Phases and ActivitiesIntegration Phases and Activities Integration Phases and ActivitiesIntegration Phases and Activities

Announce to Close

Close +90 Days 90–180 Days 180 Days and

Onward

• Empl Conversion

• Facility Planning

• Sales/SE Training

• IS/ESVoice, data, bus sys

• Product Roadmaps

• Orderability

• Revenue Plan

• Sales Strategy

• Services strategy

• Mfg planning

• Ramp Sales

• Measure Plan to Actuals

• Field Training Programs

• Push/Pull Programs

• SEVT Focus

• CCO/CEC Visibility

• Special Focus Programs

• Execute Manuf Plan

• Maintain People Focus

• Mainstream Cisco Product Line

• Full Product Integration

• BU Maintains Focus on Goals

• SE Teams Self-Sufficient

• 2nd Generation Roadmaps

• Perform Audit on Retention/Revenue

• Maintain People Focus

• HR Focus

• Equity/Comp

• Communications

• Set GoalsRev, prods, people

• Establish Budgets

• Define Organization

• Mkt Positioning

• Establish Int Team

• Integration Pre-plan

Announce Getting Started Leveraging Cisco Cisco Mainstream


Cisco Acquisitions 1 mar 2001

Cisco Acquisitions 1 mar 2001

• 30% external R&D, 70% internal R&D

• 69 acquisitions, >17B$

• 6500 people, 20% of Cisco employees

• 85% of CEO are still in Cisco


$200M

• PIX Firewall

• Cache Engine

• Local Director

1996 1999

NTI Story - Hockey Stick GrowthNTI Story - Hockey Stick GrowthNTI Story - Hockey Stick GrowthNTI Story - Hockey Stick Growth

• NAT/Firewall technology

• Acquired in 10/95

• $32 Million

• 10 employees

• $1M/quarter run rate


Typical Target CompanyTypical Target Company

• Venture-backed start-up

• 50-100 employees

• Focus in cutting edge technology

• Deep technical talent

• “Cisco kid”

• Located in San Jose, Boston, or RTP


Overall Integration Lessons LearnedOverall Integration Lessons Learned

• Understand cultural issues upfront - due diligence

• Drive product roadmaps early

• Quick assimilation into Cisco is good, but respect existing process

• Never say “Things won’t change” - correct expectations Day 1

• Have Cisco executive owner present and involved

• Identify acquisition champion at acquired company

• Identify and focus on sales integration issues immediately

• Seed Cisco people into acquired team in remote acquisitions

• Communicate early, often, and honestly


European M&A Cisco as of FY2000

European M&A Cisco as of FY2000

Seagull Semiconductor (Israel), Optical Chips

PentaCom Ltd.( Israel) DPT Solutions

Pirelli Optical Systems S.p.A. (Italy, Fr, Germany), WDM

Atlantech Technologies Ltd. (UK) Network Management

PBX Migration over LAN (UK);

Digital Video Headend

Multiservice Access (Israel)

Metro Optical Access (Sweden)

Unique R&D opportunitiesCost of Acquisition > 3.7B$FY00:Incremental 1200 R&D people in EMEAGeographic Center of Competency80% of transactions are remoteTarget of 40% of transaction in EMEA

170260_09F9_c1_Volpi © 1998, Cisco Systems, Inc.

OC-BD-Strat-0101-1 © 2001, Cisco Systems, Inc. High growth through strategic partnerships Mobile Computing and Networking Venture Capital Session July.

Documents

cisco systems

cisco slide

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