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2 Services Lothar Renner Director Service Sales Central Theatre

3 Service Strategy Evolution How to Build a Long-Term Growth Strategy for our partners and Cisco

4 Service Market Growth Rates FY13 FY17 Product Centric Services TAM CAGR FY13 to FY17 3.3% Business Outcome Services TAM CAGR FY13 to FY % 8.3B $32.1B Services $25.1B 12.9B 4.0B 20.1B 6.3B 6.8B 9.1B FY13 FY17 FY13 FY17 Security Consulting Operate XaaS 4

5 Services Strategy Evolution Traditional Portfolio Focus on the Core Services Sales Emerging Services Services Platform for IOE & Analytics Scale Current Offers Expand Portfolio & Reach Services Platform & Analytics IoE Exchanges & Industry Solutions Business & Technology Consulting Driving Growth Now Invest for Growth Security Services Cisco Cloud Services Architectures ASICs + Software + Hardware + Services

6 Cisco Service Market Trends October 2014

7 Customer Led Partner Led

8 Customer Led Partner Led Grew Faster Customer Led Partner Led

9 Customer Led Partner Led Major Accounts Partner Led Commercial

10 Why Partner Led Services is Growing Faster that Customer Led Services? September 2014

11 EMEAR SMART PSS Customer Deployments 420 August ~10x Customer smart adoption compared to just one year ago

12 FY14 Coverage Pre and Post-Sale Attach Uncovered installed base $156m of bookings Of which $81m was incremental revenue 400+ partners customers 32 countries Exceed your service goals Simplicity Differentiation Reduction in the number of contracts & end dates per customer Refresh planning (LDoS) EnergyWise Multi-Year and/or premium services SMART adoption

13 Why Commercial Segment has the best growth opportunity? September 2014

14 FY14 Results EMEAR All Segments Big Picture Attach and Renewal Rate Growth EMEAR SEE Attach Rate / Growth 61.1% / +2.6% 67.7% / +0.7% Renewal Rate /Growth 42.3% / +3.2% 49.0% / -1.0%

15 Global Service Attach Rates FY 14 COMMERCIAL ENTERPRISE PUBLIC SECTOR Actual Actual Actual Americas 67.0% 63.9% 61.6% APJC 66.3% 72.4% 60.9% EMEAR 55.5% 64.6% 64.5% SEE 59.4% 91.2% 91.4% Global 63.3% 66.4% 62.4%

16 Cisco Service Software Portfolio October 2014

17 Supporting Programme Framework Cisco Software Services Partner Programme Pilot (CSS3P) Cisco Authorized Technology Providers (ATPs) per offer EnergyWise ServiceGrid Data Virtualization Enterprise Mobility Services Platform Invitation-only programme Resellers, Integrators, and Providers Licensing Partner Capabilities and Expertise Open to 1T and 2T* CSS3P Criteria: Registered Partner ATP - Legal Ts & Cs *ServiceGrid in progress FY15

18 Cisco Services Software Portfolio Cisco EnergyWise Suite Cisco Data Virtualization Suite Provide a simple way to measure, monitor, and manage energy usage for network and IT systems across the enterprise without the use of device-side agents, hardware meters, or network configurations. This agile data integration software augments traditional data integration by combining traditional and new data sources into a consolidated view enabling analytics in real time for better business decisions. Cisco ServiceGrid Seamlessly integrate enterprise IT and service providers to enable automated multi-party service collaboration in the cloud. Create operational efficiencies and provide a scalable, fast way to integrate with everyone in your ecosystem. Cisco Enterprise Mobility Services Platform Accelerate integration of your mobile applications while increasing efficiency and reducing costs with this development and middleware platform for developing, integrating, and securing context-aware mobile applications that meet your lineof-business needs.

19 Cisco Cloud Services

20 Cisco Cloud Consumption Services Helping Customers Gain Visibility of Public Cloud Usage, Costs & Risks

21 Partner Value With Cloud Consumption Services, you can gain visibility into customer s public cloud consumption and achieve Customer Loyalty Competitive Differentiation Growth Position yourself as a trusted cloud partner Help CIO become a cloud service broker Enable strong C-level/ LOB conversation on Cloud Disruptive control point Assists in planning competitive cloud strategy vs. public cloud vendors (AWS/Google/etc) Advise customer on their public/private cloud strategy based on their cloud usage, risk and cost profile Immediate & long-term sales opportunities Position Cisco/partner managed cloud services New revenues for partners

22 Cisco Cloud Consumption Services We want to 5-10X More..host an application..share documents Unknown with customers...collaborate differently Known On Premise: Applications & DC/Private Cloud Public Cloud Services

23 Challenges: Managing Cloud Adoption Cost 23% Share of IT spending devoted to public cloud today. Growing by 17% in 3 years. (Cisco/Intel) Cloud spending shifting from IT to lines of business Partial understanding of cloud costs Duplicate costs & minimized buying power Risk 50% Global 1000 companies that will have customer data stored in the public cloud by 2016 (Gartner) Data security, compliance risks Possible exposure of confidential information can lead to negative business impact Financial stability of CSPs often unknown Services Management 76% Respondents who believe IT will be a broker of cloud services for LOBs (Cisco/Intel) Establish lifecycle management to oversee cloud service providers Track how employees are using cloud services over time Limited resources to manage influx of new cloud providers

24 Successfully Manage Cloud Adoption Cloud Maturity Model Agile IT Services Management Greater Business Agility Ad Hoc Cloud Usage User-led cloud adoption with or without IT Visibility Cloud Usage Discover all cloud vendors Reduce Cloud Cost & Risk Consolidation of cloud vendors Shift spend to private cloud Risk mitigation responses Improve Services Governance Full lifecycle management of cloud vendors Program office to manage cloud adoption Automated, service-oriented private data center Service catalog & charge back capabilities connecting to private & public resources Little understanding cost & risks Visibility into cloud usage, costs, & risk Reduce cost & risk Align IT & LOB Increased business agility Analyze org traits Lower Cost & Risk

25 Greater Business Agility Where Can You Start? Cisco & Partner Services Help You Successfully Manage Cloud Adoption Ad Hoc Cloud Usage Visibility Cloud Usage Reduce Cloud Cost & Risk Cloud Consumption Assessment Improve Services Governance Agile IT Services Management Product Data Center Upgrades Private Cloud: CIAC/UCS/Nexus Broker: CIAC Security/Control Services App Integration & Migration Cloud Onboarding Catalog/Broker Composite Software Optimization Security Operations Cloud Consumption Optimization Lower Cost & Risk

26 Journey Begins with Gaining Visibility of Cloud Usag It starts with Cisco Cloud Consumption Services Salesforce.com Cisco Cloud Usage Collector Cisco Cloud Consumption Web Portal Webex s SaaS 5-10X More Discovered Cloud Services Customer Network Cloud Benchmarking - Consumption Analytics - Spend Data - Vendor Profile Box Windows Azure I Terremark PaaS PaaS Authorized CSP Unauthorized CSP IaaS IaaS

27 Cisco CPS Cloud Consumption Assessment Service Details Cloud Visibility Categorized list of cloud vendors & detailed usage Vendor categorization Addition of new vendors from discovered services Financial Analysis Identifies financial impact of cloud consumption Overall cloud spending Potential cost savings & avoidance strategies Highlight financial & brand exposure Outlines multiple cost avoidance scenarios Risk Profile Initial cloud risk profile Risk ranking for each Cloud Service Provider, analysis by category Impact of personal vs. corporate usage Recommendations for risk mitigation

28 How Cloud Consumption Works NetFlow v5/v9 Egress Routers UDP Customer Supplied Hardware/VM Collector Software Web Portal to Analyze Cloud Usage Customer Flow Record Interface id Source IP Destination IP Protocol Source UDP/TCP Port Destination UDP/TCP Port ToS Data Amount DB (PII) Destination IP Protocol Port Number of unique Source IPs Data Amount HTTPS HTTPS Multi-tenant Cloud-based Assessment Server Assessment Software & Analytics DB1 DB2 DBn

29 Benefits of CPS Cloud Consumption Assessment Challenge Benefits Deliverables/Outcomes Public Cloud Visibility Visibility Understand how cloud is being used in your organization by discovering unknown cloud services Rising Costs Optimize Costs Reduce costs by consolidating or discontinuing services. Data Security & Compliance Risk Mitigate Risk Manage risks by finding cloud security risks and compliance issues.

30 Cisco Cloud Consumption Professional Services Offered in Two Ways Collaborative Service Cisco Branded Services + Sold and Delivered by You, Working Collaboratively with Cisco Sold by Cisco or You, Delivered by Cisco Partner Value Growth Differentiation Profitability

31 How Partners Can Deliver Cloud Consumption Services With CPS Cisco CPS Cloud Consumption Service Cisco Provides: Discovery access to Cisco Cloud Assessment to automate discovery of all Cloud Service Providers Risk Profile assessment based on proprietary categorization of high-risk cloud services Financial Analysis detailed financial analysis of Cloud consumption impact Partners Work with Your Customers to: Manage customer engagement, install network collectors, and provide final recommendations that identify customer s Cloud Service Providers, highlight cloud risk profile, financial analysis, and recommend improvements that expand your relationship with the customer.

32 Expert Suggestions on Creating Slides Products DC & Cloud UCS/Nexus, CIAC, UCS Director, Private Cloud Partner/CBR Services DC, Cloud, XaaS Services Strategy, Plan, Build & Manage, Composite Software Infrastructure Network upgrade. Cloud Web Security Security & Risk Solutions Collaboration Webex, HCS Cloud Consumption Services Infrastructure Services Cisco Consulting Services Managed Services CXO Relevance Strategic Opportunities Competitive Differentiation Customer Loyalty 33

33 Cloud Consumption Assessment Case Study Global Equipment Manufacturer Business Value Found 630+ CSPs accessed by business 90% unauthorized Discovered top 20 corporate CSPs with risk implications Identified $800K annual spend on CSPs For the first time, CIO has a financial model of cloud spend and understanding of how to reduce costs Now consolidating applications to reduce costs Challenges Solution Global manufacturer of heavy equipment Facing declining revenues reducing costs #1 business concern Vast, declining, costly IT infrastructure ~ on premise applications, multiple data centers Did not know the scope/costs of unauthorized cloud services Partnered with Cisco Services to pilot Cloud Consumption Assessment to understand their shadow IT challenge Assessment provided IT with full visibility into cloud services being accessed Identified costs and risks of cloud consumption

34 Cloud Consumption Assessment Case Study Provincial Government Business Value Despite 90% of public internet traffic being blocked: Identified 220+ CSPs were used less than 1% were authorized by IT Spend for segment of government was nearly $200K/yr, projected over $750K across all segments Helped manage risk so they can authorize more cloud services to meet employee needs Challenges Solution Provincial government responsible for citizen services Heavily restricted internet/cloud service usage for employees to avoid risk Employees pushing for additional cloud services to improve productivity Partnered with Cisco Services for Cloud Consumption Assessment to understand their current cloud usage, cloud costs and risk, and employee needs Delivered collaboratively with a Cisco certified partner

35 FY15 One Goal, One Vision DOUBLE DIGIT GROWTH

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