Cisco Tech Talk Enterprise Switching. Muninder Singh Sambi, Sr. Director, Product Management, Enterprise Switching March 5, 2018
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1 Cisco Tech Talk Enterprise Switching Muninder Singh Sambi, Sr. Director, Product Management, Enterprise Switching March 5, 2018
2 Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Cisco s filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forward-looking statements. GAAP Reconciliation During this presentation references to financial measures of Cisco will include references to non-gaap financial measures. Cisco provides a reconciliation between GAAP and non-gaap financial information on our website at under Financial Info in the Investor Relations section Cisco and/or its affiliates. All rights reserved. Cisco Confidential
3 Enterprise Trends Driving Digital Transformation Mobility IoT Cyber Security 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
4 These Digital transformation poses challenge for Enterprise IT Data growth Connected devices Threat surface areas $60B 95% Annually spent on Network Operations, Labor & Tools Of network changes are performed manually 70% Of policy violations are due to human error Resources 75% Of OpEx spent on changes and troubleshooting 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential An evolved world needs a network evolved.
5 Intent-based Networking enables Digital transformation for Enterprise IT Digital Business Network DNA Center Policy Automation Assuranc e Analytics Intent-based Network Infrastructure Mobile Security IoT The Catalyst 9000 Powered By Intent. Informed by Context Cisco and/or its affiliates. All rights reserved. Cisco Public
6 Mobility Cat 9000 Foundation of Intent Based Networking IoT Convergence Integrated Security Programmable Cloud Ready Customers and growing! Shipping since June 21, 2017 WINNER: Overall Product of the Year Design 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential UADP Modern Operating System: Open IOS XE Common Licensing Industry s Unmatched High Availability Multi-Gigabit (mgig) Performance/scale UPoE (60W) Scale
7 Catalyst 9000 Fastest ramping product in Cisco At the heart of this vision is truly reinventing networking, which we started last June with the launch of the intuitive network. I m so proud to say the Catalyst 9000 is the fastest ramping product introduction we ve had in our history, and is a fantastic example of the innovation we ve delivered over the past two years. Chuck Robbins 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
8 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
9 Price 10%+ over Advantage Price 10% to 20% over Essentials 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
10 Customer Momentum with Intent-Based Networking Education Healthcare Retail and Enterprise Government 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
11 Customer Study Children s Hospital LA Secures Connected Devices with Intent-based networking Challenge Large healthcare deployment, challenges to manage 1000s of connected devices Connect and configure 100,000 connected devices in the next 5 years Profile and ensure devices are secure Enable security profiles and provide a single pane of glass 67%* Reduce Network Provisioning Cost 80%* Improve Issue Resolution Cost 48%* Reduce Cost of Security Breach Business Outcomes 67% reduction in cost to carry out tasks such as device provisioning and policy Lowered issue resolution cost by 80% with a simplified dashboard, integration with other Cisco tools, and automation of monitoring and troubleshooting providing visibility across the network Solution: Cisco DNA Center, Cisco SD-Access TM, and Catalyst 9000 platform It is clear that SD-Access is the future; it is the only way we can keep up with the explosion of connected devices -Marty Miller, Technology Specialist, CHLA * Source: Internal TCO Analysis with Large Enterprise Customer ** Capex Reduction based on converging IOT Networks
12 Customer Study Amorepacific Future Proofs its Business with Intent-Based Networking 85%* Challenge Large Korean Retailer building out a new global HQ in Seoul, South Korea Create future-proof networking infrastructure for the new headquarters Build smart workplace environment for optimized communication and collaboration Secure a flexible and high capacity infrastructure Reduce Network Provisioning Cost Improve Issue Resolution Cost Reduce Cost of Security Breach Business Outcomes 85% reduction in cost to carry out tasks such as device provisioning and policy Time-to-market: Faster User-onboarding, from 3 week to 8 hours Enhanced stability through a software-based technology, allowing flexible network segmentation on SD-Access Fabric. Solution: Cisco DNA Center, Cisco SD-Access TM, and Catalyst 9000 platform, Cisco Aironet 3800s Our trust in Cisco s ability to be a step ahead of the curve by providing a solution that deals with changing trends such as IBN was fundamental * Source: Internal TCO Analysis with Large Enterprise Customer ** Capex Reduction based on converging IOT Networks -Jinwoo Kim, Director of IT, AmorePacific
13 Cisco s intent-based networking Shift IT time to business focus 67 % 80 % Improved issue Savings in network provisioning time resolution 48 % 61 % Reduced operating Reduced security breach impact expenses *Source: Cisco Internal TCO analysis based on input from large enterprise customer (actual results may vary) 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential ** CapEx reduction based on converging IoT networks
14 Intent-based Networking The Journey so far.. Intent Based Infrastructure Secure foundation Programmability Virtualization Policy-Based Automation Business Policy Translation Segmentation Analytics & Assurance Everything as a sensor Telemetry Historical & Real-time Launched in Cisco Live Barcelona Cisco and/or its affiliates. All rights reserved. Cisco Confidential
15 Ongoing Intent-Based Networking Innovation Continuous Verification Successful Rollouts, Operational Continuity What is Assurance? The guarantee that the infrastructure is doing what you intended it to do Insights & Visibility Minimize Downtime, User Productivity Corrective Actions Guided Remediation, Automated Updates, System optimization IT Productivity 2017 Cisco and/or its affiliates. All rights reserved. CISCO CONFIDENTIAL
16 Give IT Time Back DNA Assurance Improve Issue Resolution Converting Data into IT Insights! Challenges Workgroups IoT devices Full network visibility End-to-end QoE Mobile Applications Application visibility and control Fast network remediation Mergers 43% IT time is spent on troubleshooting Routers Switches Wireless
17 Flexible consumption Innovation, Agility and Better planning C Cisco and/or its affiliates. All rights reserved. Cisco Confidential
18 Questions? 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
19
20 FORWARD-LOOKING STATEMENTS These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of These forward-looking statements include, among other things, statements regarding future events (such as continued execution on our strategy, our ability to continue to innovate and grow our business, the continued criticality of the network to the business success of our customers, the momentum of our intent-based networking portfolio, continued progress in shifting our business toward more software and recurring revenue, and our ability to continue to execute well, deliver profitable growth and return capital to our shareholders) and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in routing, switching and services; the timing of orders and manufacturing and customer lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters, and governmental investigations; our ability to achieve the benefits of the announced restructuring and possible changes in the size and timing of the related charges; man-made problems such as cyber-attacks, data protection breaches, computer viruses or terrorism; natural catastrophic events; a pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets, currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco s most recent reports on Forms 10-Q and 10-K filed on February 20, 2018 and September 7, 2017 respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco s results of operations for the three and six months ended January 27, 2018 are not necessarily indicative of Cisco s operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of these presentation slides and the related conference call.
21 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
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