Driving Innovation Next Gen Data Center Portfolio
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1 Driving Innovation Next Gen Data Center Portfolio
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. 2
3 Accelerating Convergence Disruptions Through Innovation IP Convergence Data Voice Video Virtualization Compute Network Storage +$3.5B annual run rate SDN Application Network Scale and Security +$2B in Next Gen DC+ACI Switching in 2yrs Hybrid Cloud Analytics HyperConvergence Cloud Scale Innovation Timeline 3
4 New Scale out and Scale Up Applications Support across Bare Metal, Virtualized and Containers Use Cases Distributed IP storage for cloud apps and traditional storage (FC/ FCoE) for existing apps Distributed apps via containerbased micro-services Inter-process communication across fabric Data Center Implications Embedded Security and Visibility Lossless Traffic Fabric Wide Intelligent Buffers 7X Increase in Density of Endpoints Increased I/O Traffic Drives 2.5X Bandwidth 4
5 Our Innovation in Action Cisco Hybrid Cloud Architecture Hybrid Cloud Orchestration Embedded Security and Telemetry
6 $68 Billion Opportunity in Calendar Year 2016 Enabling Policy Based Automation for a Hybrid Cloud Architecture Switching 1 > 10 > 25 > 40 > 50 > 100G Compute Best TCO Hyperconverged Agility & future-proofed Hybrid Cloud Management $9 Billion $45 Billion $2 Billion $10 Billion $$$ Opportunity: Additional = Value-Added Services Source: Dell Oro Ethernet Switch DC Market Forecast, January 2016; 451 Research 2016 Market Monitor Overview Report; IDC Worldwide Server Forecast, x86 Blade/Rack/Density-Optimized, December 2015; IDC Worldwide Converged Forecast, February 2016
7 Cisco Data Center 10G+ Worldwide Revenue Share HP 10% Arista 9% Huawei 5% Juniper 4% Dell 3% Brocade 2% Dell Oro L2+L3 Ethernet Switching Report February 2016 Includes DC Modular and DC Fixed Managed, excludes Unmanaged and SW 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
8 Cloud Services at Cloud Scale with Cloud Economics Two Year Time to Market Advantage Using 16nm ASICs 25G at Price of 10G 100G at Price of 40G Lead the Transition: 1>10>25>40>50>100 Investment Protection: ACI Support for Nexus 7K/ ASR 9K Multi-speed Ethernet 100M-100G 50% lower system cost, better reliability and lower power Cloud Scale Endpoint density up to 10X and 12x IPv6 routes 25% more non-blocking 100G performance (36x100G) Cloud Services Pervasive line rate, network-wide visibility wire rate NetFlow Embedded security Multi-Tenancy at Scale Enhanced fabric performance 50% faster application completion time Lossless Storage Traffic IP storage, FCOE/FC ready
9 New: Cloud Scale Technology Across Entire Portfolio Speed, Visibility, Security, Reliability and Scale Built In N3100 Fixed Series Reflect shipped 10M ports on Merchant portfolio N9K Modular 9500 Series N9K Fixed 9200/9300 Series Cisco ASICs Merchant Silicon Embedded NetFlow/Security Enhanced Scale (Ports, Table Sizes) Industry First 36 port wire rate 40/50/100G Investment Protection Use existing chassis for new line cards Same Hardware For stand-alone and ACI Industry s Only Native 25G Consistent NX- OS Image Between Nexus 3K and Nexus 9K
10 Cisco NXOS Software Innovation Open, Secure, Programmable AUTOMATION Ignite/POAP REST API DevOps Tools(Puppet/Chef/ Ansible) INFRASTRUCTURE ISSU & NX-OS Patchability Graceful Insertion & Removal Unified Fabric & FCoE Enterprise SIMPLICITY Trends ARCHITECTURE VXLAN EVPN Segment Routing Intelligent Traffic Director SECURITY & VISIBILITY Nexus Data Broker Sflow, Netflow, Splunk Certifications FIP, DoD UCL OPEN READY FOR DEVOPS STANDARD-BASED
11 Broadcom Trident & Tomahawk Need to go beyond Merchant Capabilities Line Rate Performance with Cisco Silicon 36 vs 20 ports of 100G line rate routing (64 byte packets) 36 vs 10 ports of 100G line rate VXLAN bridging and routing 512K 288K MAC 2x 6x 750K LPM 4x 192K 15x Cisco Cloud Scale Technology > 3x Throughput 750K 120K 750K 84K Host Routes IPv6 Routes Cisco Broadcom Tomahawk
12 Merchant (Jericho) Modular versus Cisco Cloud Scale Modular Forwarding Scalability Cisco Cloud Scale Technology 30% - 50% Improvement in Power Consumption 6x improvement in line-rate ports per ASIC 1 M IPv4 LPM 1 M 192K 5x 15x 1 M 750K IPv4 Host Routes 384K 6x 1.3 x Cisco Broadcom Jericho 64K IPv6 /64 LPM 64K IPv6 Host Routes
13 Silicon Innovation Two Year Advantage Cloud Scale Performance and Economics 12X Routes 2.5X Bandwidth Same Cost Native 25G and VXLAN Competition (Arista, Juniper, HP, Huawei) Cisco Silicon Generation Ahead 16nm 50% Less Cost 50% Faster Application Flows Up to 50% Less Power Real Time Telemetry at 100G Every Packet, Every Flow, No Sampling Embedded Security Multi-Tenancy 8X Scale Network Segmentation
14 Broadcom Trident & Tomahawk Need to go beyond Merchant Capabilities Broadcom Tomahawk based switch was unable to meet mega-scale customer requirements Multiple no-drop traffic classes for 100G interfaces with 300m+ links Smart Buffer Spines Smart Buffer TOR/ Leaf Distributed IP Storage IP Storage Traffic Data Traffic 300m Cisco Silicon Improvements Cisco Cloud Scale Technology Increased Buffer capacity and enhanced queueing required to meet cloud scale requirements. Cisco Silicon with 2.5x buffer capacity Intelligent Buffer Management Enhanced Algorithms (Approximate Fair Distribution and Dynamic Packet Prioritization) based on years of research* Real Performance Gains Increased buffer capacity and algorithms provide up to 60% improvement in application flow completion times** * **
15 Designed for Reliability, Price & Performance Within the Data Center 8 slots 288p 100G Nexus Fabric Modules (2 ASICs each) 8 Line Cards (4 ASICs each), integrated right-sized buffers 40 ASICs - based on 16nm Non-blocking vs. Deep Buffer 6 Fabric Modules (2 ASICs each) 8 Line Cards (6 ASICs each), External oversized DRAM buffers creating bandwidth bottlenecks and reliability concerns 60 ASICs based on 28nm Blocking beyond 24 ports Cisco Cloud Scale Integrated Intelligent Buffers Minimize Components Minimize # Fabric Modules Non-Blocking Cisco Cloud Scale Technology Nexus 9500: High Density 40/100G Lower Cost 50% Fewer ASICs = Better Reliability, Lower Power One ASIC Generation & 2 Years Later Better Reliability
16 Hyperconverged Infrastructure
17 Growth Opportunity One Infrastructure Management Model Cisco UCS 2016 Cisco HyperFlex Systems X86 Computing Converged Infrastructure Hyperconverged Infrastructure $42B $7B+ 65% CAGR $2B Source: IDC Worldwide Server Forecast, x86 Blade/Rack/Density Optimized, December 2015; IDC Worldwide Converged Forecast, February
18 Introducing Cisco HyperFlex Systems Complete Hyperconvergence Software Defined Compute, Storage and Network Next Generation Software Defined Storage Always-on Optimization and Flexible Scaling Future Ready Architecture Built for Todays Workloads and Emerging Applications 18
19 Real Innovation Independent Scaling of Compute and Capacity Dynamic Data Distribution Continuous Data Optimization Integrated Management and Data Services 19
20 The Hyperconverged Game Changes Today SDx and Policy-Driven Infrastructure Software-Defined Infrastructure Common Policy Extension Multi-Cloud ACI Policy-Model Public UCS HyperFlex Security Automation Hybrid Private Common Platform 20
21 Next Generation HyperConvergence with Cisco HyperFlex Deploy in Minutes, Not Hours or Days 80% Data Reduction with 48% Higher Performance 30% Lower TCO Than Competition Future-Ready for Containers and Microservices
22 Working Together: End-to-end Orchestration
23 Hybrid Cloud Visibility & Control at Your Fingertips Single Integrated, Application-Centric Management Platform One-Click Provisioning of Infrastructure and Deployment of Application Portable and Manageable Across Any Datacenter, Private, Public Cloud Analytics driven, Closed-loop Resource Optimization Fast Time to Value
24 Why Cisco will win! Industry s Most Comprehensive Data Center Solution - Networking, HyperConverged, Orchestration Industry Leading Port Density / Power / Price / Performance - Leading 25/50/100G Transition Cisco SDN and ACI Most Complete SDN Solution Open APIs, Open Ecosystem, Embedded Security
25 For More Information IDC Technology Spotlight: Why Network Silicon Innovation is Critical to Next-Generation Datacenters - ; Shutterfly Case Study: Digital Photos Come to Life with Software-Defined Networking Shutterfly_Cisco_Std_CS_FNL_ pdf Cisco Nexus 9000 Series Switches Infographic: Is Your Network Ready? At-a-Glance: Cisco Nexus 9000 Series Switches IDC ExpertROI Spotlight: Pulsant Delivers Agile and Cost-Effective Hybrid Cloud Services with Cisco ACI Video: Pulsant Delivers Agile Cloud Services with Cisco ACI IDC ExpertROI Spotlight: Symantec Delivering on its Strategic Vision with Next-Generation Secure Datacenter Powered by Cisco ACI
26 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.
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