Fast forward into the futureFast forward into the future

Marcel Rebroš

General Manager, Cisco Slovakia

ICETA 2008, Stará Lesná

Marcel Rebroš

General Manager, Cisco Slovakia

ICETA 2008, Stará Lesná

Interconnected world Interconnected world

Connected through people,with the Network as the Platform

Email

Interactive aplicationsConnected end users

The Human NetworkThe Human Network

Content created by end users

Mega TrendsMega Trends

Digitalisation

Virtualisation

Mobility

Personalisation

Connected world realitiesConnected world realities

Highly competitive global value

chains

Virtualization & mobility

– the death of distance

Productivity growth rate

Empowered user as

customer and employee

Globallycollaborative innovation

Competitive emerging markets

Demographic shifts and

time-bombs

Demographic crunchDemographic crunch

Workers

Retired

5:1 2:1

243m

203m

-16% decline

EU Adult Population

0%

20%

40%

60%

80%

100%

2000 2050

Source: The New York Times, April 4, 2004

Demography - SlovakiaDemography - Slovakia

The Productivity ImperativeThe Productivity Imperative

To simply stay in place, workerswill have to produce 2.5X more per hour than they do today

To sustain the rate of standard of living improvements, each 2050 worker will have to produce 5X more than a worker today

3X

4X

5X

2005 2050Source: Cisco IBSG Analysis

What Drives Productivity?What Drives Productivity?

Technological change and other factors

ImprovedLabor Quality

Capital Investment

Data: US Bureau of Labor Statistics

Contribution to Long-term Productivity Growth

52%

37%

11%

Effective IT solutions drive productivity gains

Effective IT solutions drive productivity gains

Internet-Enabled ProductivityInternet-Enabled ProductivityU.S. ProductivityGrowth

1974 1995 2001 2010

1997

1.2%1.2%

2.5%*2.5%*

48%Internet Contribution

to Productivity

Act early for business ‘edge’ Act early for business ‘edge’

Accelerated pace of development means less time to react – so the slow lose out

Value

Winner

Loser

Electricity

Telephone

Internet

Mobile telephoneInvention Ubiquity

highcosthigh

returns

mediumcosthigh

returns

lowcostlowreturns

New technology

Act now

Potentialfor

competitiveadvantage

Act later

IP Telephone

Television

Time

100%

100%

25%

25%

50%

50%

75%

75%

Years

Com

pou

nd

Pro

du

cti

vit

y

Gro

wth

Source: Net Impact StudySource: Net Impact Study

ProsperityProsperity

0 9 18 27 36 45 54 63 72

Living standard will double over next 8 years7%

Living standard will double over next 8 years7%

Global IT Report 2007- 2008 World Economic Forum (WEF) Global IT Report 2007- 2008 World Economic Forum (WEF)

WEF Report – compares 127 countries in 70 categories

the Report provides comparative information for business and governments

The Report analyses how networked readiness can foster innovation

Networked Readiness Index - examines how prepared countries are to use ICT effectively

WEF Report – compares 127 countries in 70 categories

the Report provides comparative information for business and governments

The Report analyses how networked readiness can foster innovation

Networked Readiness Index - examines how prepared countries are to use ICT effectively

Scandinavian countries are leadersScandinavian countries are leaders

Networked Readiness Index 2007-2008

Top Ten  

Country NRI Rank 2007-2008

Denmark 1

Sweden 2

Switzerland 3

United States 4

Singapore 5

Finland 6

Netherlands 7

Iceland 8

Republic of Korea 9

Norway 10

Key for economic growth:

• clear vision of governments – implementation and use of ICT

• education and innovation

• 8 of the18 CEE countries are ranked in the first 50 economies

Slovakia ranked 43rd out of 127 economiesSlovakia ranked 43rd out of 127 economiesSlovakia:

– 91 mobile telephone subscribers per 100 inhabitants

– 42 internet users per 100 inhabitants

– 36 PC per 100 inhabitants

– 38th in usage of ICT in business sector

– 78th in usage of ICT in public sector

– 79th in availability of on-line government services

– 39th – broadband internet subscribers

Slovakia:

– 91 mobile telephone subscribers per 100 inhabitants

– 42 internet users per 100 inhabitants

– 36 PC per 100 inhabitants

– 38th in usage of ICT in business sector

– 78th in usage of ICT in public sector

– 79th in availability of on-line government services

– 39th – broadband internet subscribers

Networked Readiness Index 2007-2008

CEE Region  

Country NRI Rank 2007-2008

Estonia 20

Slovinsko 30

Lithuania 33

Czech Republic 36

Hungary 37

Slovakia 43

Latvia 44

Croatia 49

Turkey 55

Romania 61

Poland 62

Bulgaria 68

Macedonia 83

Albania 108

CompetitivenessCompetitiveness

Use of ICT foster economic growth and competitiveness of the country

Broadband benefits:

– Economic

(including increased productivity)

– Social

(access to education, on-line services, entertainment)

8 Dimensions of competitiveness8 Dimensions of competitiveness

The Lisbon Review 2008World Economic Forum

1. Creating an Information Society for All

2. Developing a European Area for Innovation, Research and Development

3. Liberalization

4. Building Network Industries

5. Creating Efficient and Integrated Financial Services

6. Improving the Enterprise Environment

7. Increasing Social Inclusion: Bringing People to the Workforce, Upgrading Skills

8. Enhancing Sustainable Development

Intelligent infrastructure as platformIntelligent infrastructure as platform

BroadbandBroadband

IP VPNIP VPNVoiceVoice

InternetInternet

Data CenterData

CenterSecuritySecurityStorageStorage

VideoVideo

MobilityMobility

Act early for business ‘edge’ Act early for business ‘edge’

Accelerated pace of development means less time to react – so the slow lose out

Value

Winner

Loser

Electricity

Telephone

Internet

Mobile telephoneInvention Ubiquity

highcosthigh

returns

mediumcosthigh

returns

lowcostlowreturns

New technology

Act now

Potentialfor

competitiveadvantage

Act later

IP Telephone

Television

Time

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCiscoEI-Overview 20

Connectivity – more than wires

Consumers Business Government

The Connectivity Scorecard, LECG, 2008

Lines

Broadband

PCs

Lines

Broadband

PCs

Business linesHardwareEnterprise IP

Business linesHardwareEnterprise IP

Online servicesGovernmentwebsite

Online servicesGovernmentwebsite

Infrastructure

Literacy

Schooling

Internet

Literacy

Schooling

Internet

Business mobileE-commerceEmployee skills

Business mobileE-commerceEmployee skills

Website usage

Schools ICT usage

Website usage

Schools ICT usage

Usage & Skills

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCiscoEI-Overview 21

Cisco – Technology Innovator

$4.5 billion invested in R&D

Over 17,000 engineers in 10 global laboratories

Over 2000 patents issued to Cisco inventors

Posledné úspechy

CRS-1Carrier Routing

System

IOS XRSelf-Defending,

Self-Healing Operating System

Software

TelePresenceHigh-Definition Network-Based

Meeting Solution

Build-Partner-Acquire

129 acquisitions to date

Networking SkillsNetworking Skills

Less than 8.1% Gap

8.1%-14% Gap

14%+ Gap

Advanced Technology Skills Gap 2005-2008

Cisco Network Academy Program61 schools and univesities160 instructors11 000 studentsMemorandum of understanding with Ministry of Education

John Chambers, President and CEOJohn Chambers, President and CEO

“The two great equalizers in life are the internet and education.”

“The two great equalizers in life are the internet and education.”

Committed to the FutureCommitted to the Future

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24