1Cisco Confidential

Emerging Technologies and Innovation @ Cisco

Gary Coman

Director, Product Management

Cisco, Asia Pacific

2Cisco Confidential

Agenda

• Increasing Role of Technology & Communications

• Cisco’s Internal Innovation Strategy

• Emerging Technologies:

Interoperability Systems

Physical Security

Digital Media Management

TelePresence

• Summary

3Cisco Confidential

Everything Will Be Connected

Source: Forrester Research, February 2005

14 billion devices will be connected to the Internet by 2010

14 Billion

300 Million

2001 2006 2008 2009 201020072002 2003 2004 2005

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DevicesDevices

The World is Changing FastOpportunities Abound

ExperienceExperience

Content/Applications

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Innovation Strategy: Network as a PlatformExtend the Value of the Network

NETWORK PLATFORMNETWORK PLATFORM

VALUE

Standard + Extensible = Value-Creation

Standard + Extensible = Value-Creation

NETWORK PLATFORMNETWORK PLATFORMNETWORK PLATFORMNETWORK PLATFORM

New Systems:•Cisco TelePresence• IPICS•Physical Security•Digital Media

NETWORK PLATFORMNETWORK PLATFORM

MultiProtocolMultiProtocolRoutingRouting

DataData--VoiceVoiceVideoVideo

ContentContentAwareAware

EmergingEmergingTechnologiesTechnologies

App

App

App

App

App

App

App

App

App

App

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Global IP Traffic Growth by Segment

Source: Cisco Estimates, Ovum, Bernstein, Public Company Data

53% CAGRPB / Month

Wireline—Consumer

Wireline—Business

Wireline—Consumer

Cable—Consumer

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

10,000

9,000

8,000

0

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Traffic grows to nearly 9 Exabytes per Month by 2009Traffic grows to nearly 9

Exabytes per Month by 2009

For Perspective:

1 Exabyte = 5 X all the world’s printed matter

5 Exabytes: All words ever spoken

For Perspective:

1 Exabyte = 5 X all the world’s printed matter

5 Exabytes: All words ever spoken

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Network price performance:doubling every 12 months* *Ray Kurzweil, 2005

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1,148

1,288

1,357

1,218

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

2006 2007 2008 2009

B$

Growth in IT Spending in Worldwide, 2006–2009

Where Does the IT Money Go?

Source: IDC WW Black Book, January 2006

2006 WW IT Spending:

1,148 B$

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Agenda

• Increasing Role of Technology & Communications

• Cisco’s Internal Innovation Strategy

• Emerging Technologies:

Interoperability Systems

Physical Security

Digital Media Management

TelePresence

• Summary

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Cisco Strategy for Growth

11Expand Core Markets

22Grow AT Markets

33Create New Opportunities

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An Extensive Portfolio

The 85% You Don’t See: The Intelligent Information NetworkEnhanced

Power Management

IntelligentLAN Switching

Auto VLAN

Auto QoS

LinkSys

CarrierSoftswitch

Firewall

Host IntrusionProtection

WiFi Networking

Dynamic DeviceDiscovery

IntelligentTraffic Routing

Network AccessControl

Secure VPN Access

Storage

CiscoWorks

SeamlessMobility

Dynamic UserTracking

SRST

Video Association

The 15% You SeeIP TelephonyIP Telephony

Customer ContactCustomer Contact

Unified MessagingUnified MessagingVideoVideo

CollaborationCollaborationMobilityMobility

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Internal Venture,Financial Investment

EMTG: A New Growth ModelNew Products for New Markets—Disruptive Innovation

New

Existing

Existing New

Source: Prof. Ed Roberts, MIT Sloan School

Partner,Acquire

Develop,Acquire

Acquire,Partner

EMTGFocus

Market

Technologies

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Cisco: Innovation for Growth

15%

13%

9.3%

CAGR

$0

$10

$20

$30

$40

$50

$60

$70

’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 '06 '07 '08 '09 '10 '11 '12

Revenue Foundation

ATs ETs

$B

Projected

To achieve 15% CAGR

ETs = $6.5B by FY12

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Internal Venture Math

15 Successful ET’s

$6.5B$6.5B

75%

1,000Prospects

20ET Investments

2%

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Cycle of Innovation

DeployDifferentiation

at Scale

DeployDifferentiation

at Scale

InventDifferentiated

Offering

InventDifferentiated

Offering

ManageMission-criticalProcessesat Scale

ManageMission-criticalProcessesat Scale

ExtractResourcesto Reinvestfor Core

ExtractResourcesto Reinvestfor Core

2. Deploy2. Deploy

1. Invent1. Invent

3. Manage3. Manage

4. Offload / Repurpose4. Offload / Repurpose

AdvancedAdvancedTechnologyTechnology

FoundationFoundationTechnologyTechnology

EmergingEmergingTechnologyTechnology

ReinventReinventTechnologyTechnology

Source: Cisco, TCG Advisors

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INTELLIGENT INFORMATION NETWORKINTELLIGENT INFORMATION NETWORK

Innovation Across all Customer Segments

IP NGNIP NGN

SERVICE PROVIDERSERVICE PROVIDER

The Connected Home

The Connected Home

CONSUMERCONSUMER

Service Oriented Network ArchitectureService Oriented

Network Architecture

ENTERPRISEENTERPRISE

FOUNDATION TECHNOLOGIESFOUNDATION TECHNOLOGIES

EMERGING TECHNOLOGIESEMERGING TECHNOLOGIES

ADVANCED TECHNOLOGIESADVANCED TECHNOLOGIES

COMMERCIALCOMMERCIAL

Smart Business Communications Architecture

Smart Business Communications Architecture

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Invent Like a Startup,Scale Like Cisco

New BU

Invent Build Sell Support

Mfg

Marketing Sales

Services

IntegratedGo-To-Market Approach

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The EMTG Framework for InnovationFind and Filter–Then Initiate ���� Accelerate ���� Eliminate/Graduate

Initiate

BU formed

$1B, 5–7 yrs? Execute Commit

2. Deploy2. Deploy

1. Invent1. Invent

Accelerate

Eliminate

Find

Filter

Graduate

• Academia, Idea shops, Tech Center

• VC Focus

• Apply disruption to others

• Prevent disruption to Cisco

• Resurrect failed attempts

• Exploit macro trends

• Feedback from Partners, Customers

• +1 B$ in 5–7 years?

• Leverage existing Cisco business model?

• Significant pull-through opportunity?

• “Pay as you grow” profile?

• Determine outcome: Test, Initiate, Pass, Seed, Kill?

Crossed the Chasm?

Market Share vs nearest competitor?

$100M–$300M ?

Barriers to entry in place?

Insufficient market?

Product not viable?

Cisco can’t sell?

Losing share?

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The Emerging Technologies

Advanced Technologies

(announced)

Advanced Technologies

(announced)

• Application Networking Services

• Home Networking

• HSBS (Linksys One)

• Digital Video (SA)

• IPC

• Optical

• Security

• Storage

• Wireless

• Application Networking Services

• Home Networking

• HSBS (Linksys One)

• Digital Video (SA)

• IPC

• Optical

• Security

• Storage

• Wireless

Stage 2 Emerging

Technologies(announced)

Stage 2 Emerging

Technologies(announced)

• Communication Interoperability Systems (IPICS)

• Physical Security

• Digital Media Management (DM)

• TelePresence

• Server Networking and Virtualization

• Consumer Electronics

• Intelligent Services Management

• Communication Interoperability Systems (IPICS)

• Physical Security

• Digital Media Management (DM)

• TelePresence

• Server Networking and Virtualization

• Consumer Electronics

• Intelligent Services Management

Stage 1 Emerging

Technologies(unannounced)

Stage 1 Emerging

Technologies(unannounced)

As much as I would love to do it, I

cannot show you that.

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Agenda

• Increasing Role of Technology & Communications

• Cisco’s Internal Innovation Strategy

• Emerging Technologies:

Interoperability Systems

Physical Security

Digital Media Management

TelePresence

• Summary

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Systems Interoperability—Cisco IPICS

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Cisco IPICSSystem for Communications Interoperability

Cisco Innovation @ Work

25 Patents Filed

PSTN CellPC VoIP

Comprehensive Voice Interoperability

Radio Interoperability

UHF VHF

NXTL

Contextually Integrates Multiple Modalities of Communication for Interoperability and Collaboration

GIS and Data SensorVideo

Policy-Based Communications Interoperability

Automation, Inference Engine, Workflow

Integration

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Same IPICS System Enterprise Safety and Security - Business Operations - Interoperability

Fleet and TacOps (Tactical Mobile Ops)

Financial

Enterprise, Commercial, Retail, Healthcare, etc.

Oil and Gas/Utilities

Transportation

Same Horizontal Platform Across Verticals

IPICS System

LMR Gateway

●

Radio to IP

●

Phase 1

Public Safety/ State and Local/ Education

Federal

Defense

IT$ Ops$

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Physical Security—Video Surveillance

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Cisco Services PlatformNetwork Video Recorder

Cisco Client Software

Viewing and Configuration

Cisco Services Platform

Digital Video Recorder

Cisco IP Gateway

Video Encoder/ Decoder

Cisco Innovation Delivers Access to Video at Any Time from Any Place, Enabling Real Time Incident Response, Investigation and Resolution

Service Oriented Network Architecture

(SONA)

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Integration with Cisco Products

• Deployed on SONA foundation to increase business impact

• Network integration is a critical differentiator, providingInterconnectivitySecurityAvailabilityStorageRemote management, monitoring and viewing

• Video surveillance drives foundation sales

BusinessApplications

Collaboration Applications

Server Storage Clients Networks

Application Networking Services

Infrastructure Services

Networked

Infrastructure

Layer

Interactive

Services

Layer

Application

Layer

Adaptive

Management

Services

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Digital Media Management—Digital Media System

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What Is the Digital Media Opportunity?YouTube for the Enterprise

Mobile Media Mgmt.

Digital Signage

Growth

New Opportunities

Live Webcasting

Future

Today

Yesterday

Video on Demand

Digital Media System

$2B - $3B Market by 2010

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Cisco Digital Media System

Cisco Video PortalDigital Media Manager

Program Manager Category Manager

Interface Manager Lineup Manager

Account Manager Deployment Manager

Digital Media Encoder 1000

Digital Media Encoder 2000

MediaDelivery

MediaManagement

MediaCreation

Solution that Spans Across the Digital Media Value Chain

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Cisco TelePresence

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Why call it TelePresence?

Telegraph Acoustic TelegraphTelephone

Better Customer Experience

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Cisco TelePresence Complete Solutions

Endpoints • Group and executive

High DefinitionVideo Switch • Multi-point

Software• Scheduling• Automated call launch• Video concierge

Network • Business to Business

Services • Planning and design• Operate services

Cisco Product Solution

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Cisco TelePresence Meeting SolutionEndpoints Product Breadth

Cisco TelePresence System 3000

• 12 seats at the virtual table

• Purpose-built room

• Ships FY Q2

Cisco TelePresence System 1000

• 4 seats at the virtual table

• General purpose room

• Ships FY Q2

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Cisco TelePresence ManagerExperience Middleware

Room SchedulingEnterprise Groupware

Automated Call Launch“One Button to Push”

ReportingBilling

Administration

CiscoTelePresenceManager

User Experience

*Roadmap

Real-Time Services

CCM NetworkPlatform

IPCC

IPCOM

OutlookNotes

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RoadmapMultipoint Solutions

• Cisco TelePresence multipoint

• Optimized for Cisco TelePresence

Full-size continuous presence by screen

Switching by table segment

Interoperable between endpoints CTS 3000, 2000, 1000

• Call launch, “one button to push”

• Second half FY’07

New York

Toronto

Los Angeles

London

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Cisco TelePresence Global Deployment Plan

Q1 Q2 Q3 Q4

FY 07

San Jose

CBC/EBC

Field Sales and Other Offices

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Conclusion

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Cisco—Innovation

• $3.8 billion R&D investment annually

• 17,000 engineers working in more than 10 major labs worldwide

• #1 in most markets in which we compete

• Over 100 companies acquired

• More than 2,300 patents issued to Cisco inventors in last 10 years

• Multi-Protocol Routing and Switching

• Voice over IP

• WiFi wireless

• Largest contributor to IETF, IEEE

• Multi-Protocol Routing and Switching

• Voice over IP

• WiFi wireless

• Largest contributor to IETF, IEEE

MAJOR INNOVATIONS

Development

Acquisitions

EMTG = 6x number of EMTG = 6x number of patents than rest of patents than rest of

Cisco R&DCisco R&D

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Conclusions

• Partnership, acquisition, and internal innovation

• Internal innovation unleashes employee creativity

• Transparency promotes participation

• Build on inherent advantages of scale

• Leverage architectural strengths

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Thank YouThank You