Forward-looking Statements. GAAP Reconciliation.

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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 Form 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. 2

3 Driving Value and Innovation Through Investor Day Nick Earle, SVP, Global Cloud and Managed Services Sales

4 277X Data created by IoE devices v. end-user 30M New devices connected every week 180B Mobile apps downloaded in % Workloads processed in Cloud DCs by TB+ of data per person by 2020 The Uber Trend: Exponential Rise in Connectivity Source: IDC 4

5 Exponential Growth Drives Opportunities Exponential Trend Linear Trend Knee of Curve Disruptive Stress /Opportunity Peter Diamandis: BOLD

6 When Products Become Cloud-enabled, They Become 10X More Valuable $23.19 $18.01 $5.99 $ $ $59.99

7 A Broader Perspective than Hybrid Cloud Is Required SaaS PaaS IaaS Data Center Cloud Edge / IoT

8 CIOs Need to Embrace Both Traditional and Hyperscale Application Deployment Traditional enterprise applications Hyperscale applications serving several thousands of users very quickly ERP, CRM, Applications that leverage traditional databases Majority of applications being run for/by Enterprises today IoE and increasing connectivity driving the need for such workloads Hadoop, Mobile back-ends, Gaming, Social Small (~10%), yet rapidly growing percentage of applications in the Cloud

9 Application Portability and Interoperability Is the Key Traditional Applications SaaS Cloud Native Applications ERP, Financial, Client/Server, CRM, , PaaS IaaS IoT, BigData, Analytics, Gaming,... Data Center Cloud Edge / IoT

10 Change Governance Bimodal IT Is the New Normal Nonlinear Mode Accept Instability Systems of Innovation 45% Traditional Mode Requires Reliability (ITIL, CMMI, COBIT) (DevOps, automation, reusable) Systems of Differentiation Systems of Record of CIOs currently have a second fast/agile mode of operation Source: Gartner, Lydia Leong Source: Gartner, Lydia Leong

11 We Must Connect the Clouds Internet Islands of Isolated PC LAN Networks (1990s) The Internet World of Isolated Clouds (2000s) The Multiple LANs using a multitude of protocols Connected using industrystandard IP protocol Individual custom-built clouds without consistent APIs Connected for application acceleration with Open APIs The Internet IP Based Open Standards The Web-scale Architecture API-Driven Automation Open, Secure, Compliant, Hybrid IT

12 Value Proposition: Hybrid IT Not Just Hybrid Cloud Highly Secure Network Policy Extension Application Policy Control Across All Clouds Hyperscale Applications Analytics for IT and OT Hybrid cloud requires the ability to run any VM or bare - metal server in any cloud and maintain network policy and security consistently CIOs need application-centric policy control across all IT components and all clouds at scale CIOs need Bimodal IT - the ability to develop cloud-native applications on OpenStack and link to legacy applications The Internet of Everything (IoE) explosion will require data virtualization at scale, not data replication

13 The Partner Services Cisco Marketplace Cisco Services Infrastructure as a Service Desktop as a Service Enterprise Private Clouds Spark Energy Management Disaster Recovery as a Service Cloud Cell Architecture for SAP HANA INTERCLOUD Connected Analytics for Events Extended Patient Care Video & TelePresence as a Service Unified Communications as a Service Providers Services Alliance Service Grid Service Delivery Platform Exchange Contact Center as a Service CIMK v1.0

14 60+ Global Partners April 28, 2015

15 GROWTH PLAN

16 Best Data Center and Cloud Portfolio in Industry Cloud Offers Cisco UCS Policy-Driven Infrastructure Cisco ACI Cisco Nexus Data Center Automation Software Cisco ONE Foundation for Compute Private and Hybrid Cloud Software Cisco ONE Enterprise Cloud Suite PaaS Cisco SaaS Marketplace Enterprise Cloud Cisco OpenStack Private Cloud Providers INTERCLOUD Services IaaS Public Clouds Big Data Analytics Cisco Connected Analytics Data Center Cloud Edge / IoT

17 How Does Drive Transaction & Annuity Growth? Private Cloud Integrated Archs: 9K, 7K Openstack Private Cloud ACI, ICF Cisco ONE Enterprise Cloud Suite Connected Analytics Cisco Cloud Services: PaaS, Spark, etc Cisco Services ASPs: $500k to $2m TAM: >40,000 UCS customers Current penetration: <1% Providers Enterprise Private Marketplace Clouds Cisco SaaS & Mgd Srvcs Connected Analytics 3 rd Party SaaS Workload Brokering INTERCLOUD TAM: Thousands of Apps Millions of users Billions of Things Current penetration: 0% New Revenue Drivers Broader RTM for Cisco SaaS & MS ISV revenue sharing Micro Services Brokerage Fees ASPs: Dollars / App / User / Mth Cents / Data Service / Transaction Services Alliance Public Cloud Integrated Archs: 9K, 7K Managed OpenStack Node ACI, ICF Virtual Managed Services Connected Analytics Management) Cisco Services ASPs: $2m - $4m per SP node $500k per Partner TAM: Partners Current penetration 30% (Commitment) >1000 SP nodes >200 DC

18 The 5 Phase Plan Services Data Services Industry Exch. + IoE Build Infrastructure, Capabilities & Ecosystem Deliver on the Value of Capabilities Build the Marketplace Cloud Support, professional and managed services on nodes Enable App / Workload Exchange & Leverage Policy Global Connects World of Many Clouds Micro Services Monetization Create and manage exchange Brokerage Marketplace Cisco-only Marketplace SaaS, Connected Analytics IaaS / PaaS We are here Brokerage fees Reselling partner capabilities (% marketplace fees) 3rd party ISV apps (% marketplace fees) Cisco apps and services (e.g. VMS) on CIS and marketplace Retail and wholesale IaaS, managed cloud services Cloud stack (SW) Cloud Infra. (HW) Cisco ONE software sold as ELA to end users nodes / Private clouds on Integrated Architecture stacks (Openstack and others)

19 Forward-Looking Statements These presentation slides and related webcast may be deemed to 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 statements regarding our growth and strategy) 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, including our foundational priorities, and in certain geographical locations; 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; 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; 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 Form 10-K and Form 10-Q. The financial information contained in these presentation slides and related webcast should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco s most recent reports on Form 10-K and Form 10-Q, as each may be amended from time to time. Cisco s results of operations for prior periods are not necessarily indicative of Cisco s operating results for any future periods. Any projections in these presentation slides and related webcast 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 related webcast Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

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