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2© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Open Pay allows companies to receive equipment with more compute and/or storage capacity than is needed at the time of acquisition.
• The “fixed” components require a set minimum payment.
• The variable capacity is installed on premise and ready for use, but customers pay for variable capacity only when utilized.• Customers are charged only on days those buffer assets are
used and if any usage reading is positive. • Open Pay is the first model of its kind to charge based on
metered usage of both compute and storage.
• Intended for UCS, Vblock, and FlexPod to start and other storage in the future.
What is Open Pay?
3© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Open Pay – Consumption ModelOpen Pay allows companies to receive equipment with more compute and/or storage capacity than is needed at the time of acquisition.
• The “base” compute and storage components require a minimum payment. • The “variable” capacity is installed and ready for use, but customers pay
for variable capacity only when utilized.
Term -12 quarters
Re
ve
nu
e
Base CapacityFixed quarterly
payment
Variable UsageBilled quarterly
as used
consumption curve
Lease Revenue(Regardless of Consumption)
Fixed Payment Obligation Uncommitted Capacity
4© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
The Cisco Capital EcosystemPAYG and Open Pay
Cash
Pure Utility (AWS)MMS
FCMXaaS
Open PayPAYGLeases
& Loans
Flexibility
0%100% Commitment
5© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Who would use Open Pay and Why?• Growth companies who need extra
capacity during the term.• Customers with seasonal, monthly or
quarterly fluctuations in demand• Allows companies to overcome the
common challenge of meeting uncertain demands quickly and efficiently with extra buffer capacity
• Addresses concerns around security, privacy, compliance, and control that the public cloud models do not address (off premise/shared resources)
6© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
1. Subject to credit approval
2. UCS required
3. Deal size:1. $500K minimum for UCS only2. $1 million minimum for converged infrastructure (compute plus storage)3. $5 million maximum
4. Customer expecting significant growth with seasonal periods of peak usage, known spikes in usage over time, or need for short term rapid deployment.
5. Willing to allow metering of compute and storage usage
6. Subject to review of Qualifying Questionnaire with DCV Pursuit Team
Customer Eligibility Criteria
7© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Customer Benefits
• Flexibility
• Privacy advantages
• Cost effective alternative
• Minimizes upfront cost like in a lease
• Monthly base cost lower than a full lease on all of the equipment
• Pay for usage
• Match solution to operational and financial objectives
• Available for UCS, Vblock or FlexPod
• Measures compute and storage
• Flexible capacity easily converted to fixed capacity
8© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Open Pay: FAQsQ1: When will Open Pay be available?
A1: In the US on a limited basis in Q4 FY15. Wider availability expected for FY16 in the US with eventual expansion to EMEA, LATAM and APJC to follow.
Q2: What happens if there is very little variable usage each year?
A2: Minimum required buffer usage will vary based on the percentage of fixed/variable:• 70/30: 15% minimum buffer usage each year—standard offer• 60/40 20% minimum buffer usage each year ----Exception case
If the customer does not have actual buffer usage meeting required minimum, CSCC has option to convert entire buffer to fixed at prevailing market rates after each one year period.
Q3: What happens if there is excessive use by the customer in the first year?
A3: Cisco will allow the customer to convert buffer to FMV lease at any time. FPO is an option as well. CSC will be made whole on revised structure.
Q4: Can other Cisco hardware products be included in the compute portion of Open Pay?
A4 : Yes, a limited dollar amount of other Cisco products may be included in the economic division of the BOM. Software, Services, and other soft costs may be financed on a separate schedule.
Q5: Can I add more equipment to the Open Pay schedule after the lease starts. In what way can I add more equipment on?
A5: Yes, the customer can always add more equipment by adding to the fixed lease, or by adding in a proportion that is consistent with the original mix of Fixed and Variable.
9© 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
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