© 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4 © 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4

© 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4 © 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4

27659_03_2003_c4 © 2003, Cisco Systems, Inc. All rights reserved.

Ammar HanafiVice President

New Business VenturesCisco Systems

Cisco Systems:Innovating for The Enterprise

© 2003, Cisco Systems, Inc. All rights reserved. 3337659_03_2003_c4

A 360 Degree View of Business Innovation

Processes(How)

Processes(How)

Customers(Who)

Customers(Who)

Customer ExperienceCustomer

Experience

SolutionsSolutions

Channels(Where)

Channels(Where)

Products(What)

Products(What)

R&DR&D PlatformsPlatforms

NetworkingNetworking

Revenue Model

Revenue Model

Value ChainValue Chain

Logistics/Supply Chain

Logistics/Supply Chain

Source: Managing Business Innovation, Sawhney and Wolcott, Kellogg School of Management, Oct. 2002Source: Managing Business Innovation, Sawhney and Wolcott, Kellogg School of Management, Oct. 2002


The Context For Innovation:Our Customers

Growing Our Revenues in New Growth Markets Growing Our Revenues in New Growth Markets

Increasing Our Market Share in Core MarketsIncreasing Our Market Share in Core Markets

Customer Success= Cisco Success

Customer Success= Cisco Success


The Technology Strategy No Compromises

PerformancePerformanceRouters and switches

SiliconHardware

Lower cost

Routers and switchesSilicon

HardwareLower cost

Convergence - Data, Voice, Video, StorageSecurity

Manageability

Convergence - Data, Voice, Video, StorageSecurity

Manageability

Lasting architectureGenerational approach

Lasting architectureGenerational approach

Investment ProtectionInvestment Protection

Intelligent Services


© 2003, Cisco Systems, Inc. All rights reserved.7659_03_2003_c4


InnovationInnovation

PerformancePerformance Investment ProtectionInvestment Protection



• IBSG

• Channels

• Partnerships and Allia

nces

• Service and support

• IBSG

• Channels

• Partnerships and Allia

nces

• Service and support

SecureSecureRobustRobust

AdaptableAdaptable

FairFair ScalableScalable

GlobalGlobal

• Next Set o

f require

ments

• Focused investm

ents

• Understanding of business m

odels

• Next Set o

f require

ments

• Focused investm

ents

• Understanding of business m

odels

The Innovation Cycle

IntelligentInformation

Network

IntelligentInformation

Network


© 2003, Cisco Systems, Inc. All rights reserved. 7777659_03_2003_c4Source: Yahoo Finance 7/17/03Source: Yahoo Finance 7/17/03

IntelIntel MicrosoftMicrosoft IBMIBM DellDell CiscoCisco

Q2 ‘02Q2 ‘02 Q3 ‘02Q3 ‘02 Q4 ‘02Q4 ‘02 Q1 ‘03Q1 ‘030%0%

5%5%

10%10%

15%15%

20%20%

R &

D a

s %

of

Re

ven

ue

© 2003, Cisco Systems, Inc. All rights reserved.8551_08_2003

Investment in Technology Innovation


Extending Our Core Business with New Growth Markets

• Customer contacts / partnerships

• Contiguity of businesses

• Mastery of technology

• End-to-end system extension

• Customer contacts / partnerships

• Contiguity of businesses

• Mastery of technology

• End-to-end system extension



Where We’re Spending:Core and New Growth Markets

Routing, Switching, and SoftwareRouting, Switching, and Software

• Security

• Telephony

• Wireless /Mobility

• Storage Networking

• Security

• Telephony


• Storage Networking

• Security

• Telephony


• Security

• Telephony


EnterpriseEnterpriseCommercialCommercial Service ProviderService Provider

• Metro

• Converged packet networks

• VPN

• Cable

• Voice

• Metro

• Converged packet networks

• VPN

• Cable

• Voice

CORE

CORE



Systems Approach: A Foundation for Growth

Routing • Switching • OpticalRouting • Switching • Optical

Wireless LAN • Storage NetworkingWireless LAN • Storage Networking

IP CommunicationsIP Communications

HAHA QoSQoS MulticastMulticast VirtualizationVirtualization SecuritySecurity

Future:

Application Orientation

Future:

Application Orientation

Network Management/ProvisioningNetwork Management/Provisioning

© 2003, Cisco Systems, Inc. All rights reserved.8551_08_2003


New Enterprise Reality

SecurityPoints

WLAN

Storage Area

Networks

LAN

WAN

Past: Separate Present: Hybrid Future: Convergence

Voice Network

VideoConfer-encing

IPTel /Voice

Security WLAN

LAN and WAN

Video

SAN

Secure Converged

Network

DataData VoiceVoice VideoVideo StorageStorage

WirelessWirelessWiredWired


Network-Embedded Applications

Secure Converged

Network

PBX and Key Systems

PBX and Key Systems

Firewall and VPNs

Firewall and VPNs

Storage Virtualization

Software

Storage Virtualization

Software

MobilityManagement

MobilityManagement


The Secure Converged Network as a Service Delivery Platform

Packet Layer Services

Network-EmbeddedServices

Voice

Security

Mobility

Storage

• Single point of control

• Ubiquity of implementation

• Services are end-to-end

• Cost advantage


Example: Full Service Branch of the Future

14Presentation ID © 2002, Cisco Systems, Inc. All rights reserved.

Embedded Security & Security Appliances

Embedded Security & Security Appliances

Access RoutersAccess Routers

Catalyst SwitchesCatalyst Switches

Wireless LANWireless LAN

CallManager Express™ and SRSTCallManager Express™ and SRST


Cisco Access Router EvolutionAchieving Full “Branch in a Box”

Multi-Protocol Routing, Access

Control, QoS

Hybrid Keysystem

voice- VoFR, VoIP Hybrid Keysystem

voice- VoFR, VoIP

Voice ApplicationsVoice Applications

Content DeliveryContent DeliveryAdvanced SecurityAdvanced Security

Low DensitySwitching

Low DensitySwitching

IP TelephonyIP Telephony

3700 Flagship FSB Router

IOS Firewall/ Encryption

Intelligent Information Network


Summary: Key Technology Trends

• Virtualization of resources

• Virtualization of location

• Mobility of access

• Scalability of applications

• Embedded security

• Video

• Wireless

• Virtualization of resources

• Virtualization of location

• Mobility of access

• Scalability of applications

• Embedded security

• Video

• Wireless


The Network of Networks


Enterprise User Productivity Driven By Access Any Place, Any Time, Via Any Device

TheNetwork of Networks

TheNetwork of Networks

Applications


Documents

© 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4 © 2003, Cisco Systems, Inc. All rights reserved. 1117659_03_2003_c4