Cisco Corporate Overview
Market Capitalization Leadership Cisco Cisco $146B $110B Cisco $10B Top 12 Competitors $71B Top 11 Competitors $60B Top 11 Competitors $24B January 1995 November 2005 May 2010
Market Share Leadership 100% 80% 60% 40% Cisco Security 36% 100% 80% 60% 40% Cisco/SA Digital Video: IPTV 63% 100% 80% 60% 40% Switching: Modular/Fixed Cisco/SA 71% 20% 20% 20% 0% 0% 0% 100% Voice 100% Wireless: LAN 100% Storage: Area Networks 80% 60% 40% 20% Cisco 31% 80% 60% 40% 20% Cisco 57% 80% 60% 40% 20% Cisco 25% 0% 0% 0% 100% Routing: Edge/Core/Access 100% Networked Home 100% Web Conferencing 80% 60% Cisco 57% 80% 60% Linksys 39% 80% 60% 50% 40% 20% 40% 20% 40% 20% Cisco/WebEx 0% 0% 0%
Market Share Leadership 25% 50% 57% 63% 57% 39% 71% 36% 31% Only company with leadership across all segments Integration as sustainable Diverse product portfolio for 57% 39% competitive advantage long-term stability
Strong Geographical Balance Total $10.4B 27% Y/Y $5.6B $0.4B $1.1B $1.1B $2.1B 29% Y/Y 25%Y/Y 30% Y/Y 41% Y/Y (15%) Y/Y U.S. and Canada Japan Emerging Markets Asia Pacific Europe Q3 FY10 Fiscal Revenue by Geography
The Network as the Platform Cisco s strategy is based on catching market transitions the market transitions that affect our customers. With the proliferation of video and collaborative Web 2.0 technologies, the network continues to evolve from the plumbing of the Internet providing connectivity to the platform that will change the way we work, live, play and learn. John Chambers, Chairman and CEO, Cisco
Market Transitions Our strategy is guided by the market transitions that affect our customers. Network of Networks Network as Platform Collaboration/ Web 2.0 All in One: Data/Voice/Video 1997 2000 2006 2008-2009
The Network as the Platform 3 5 Year Goals Cisco Strategy FY 10 Initiatives Business Architecture 3-5 Year Goals Intelligent Information Network Initiatives Technology Architecture
Voice Cisco: The Convergence Innovator One Seamless, Transparent Customer Experience Mobility Enterprise Service Provider Small Consumer Commercial Public Sector Video Data Information Data the network platform as the Video Entertainment Freedom Mobility Voice Communications
Creating Sustainable Differentiation Through Platform Leadership Systems Architectural Plays Solutions & Business Models Products
culture collaboration customers employees community Cisco allows people to connect locally and globally That s the Human Network a place where everyone is connected
The Cisco Vision changing the way we work, live, play, and learn. SM The Mission to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners
Open Communication Market Transitions Trust/ Fairness/ Integrity Giving Back Inclusion Continuous Improvement/ Stretch Goals Innovation Quality Team culture No Technology Religion Profit Contribution (Frugality) Customer Success Empowerment Collaboration/ Teamwork Fun Drive Change
Cisco s customers culture drive our strategy we deliver long-term relationships and customer satisfaction based on customer needs Global Approach Business Architecture + Technology Architecture Services-led Solutions Cisco 3.0 Business Architecture Network as the Platform Technology Architecture
culture employees are our competitive advantage 1/3 1/3 1/6 1/6 sales engineering service other 68K + employees 165 + 550 + countries offices
the idea of community culture no longer applies to just cities towns or countries
community yours is wherever you need to interact.
Networking Academy Volunteerism we believe community belongs to everyone. Make Every Connection a Green Connection Sustainable Business Practices
technology Innovation as a means of evolving through Build Buy Partner Go-to-Market / Investment Strategy
20,000+ Engineers $5.2B+ R&D Investment Annually Build 700 Patents Filed Annually 30 Major Labs Worldwide Internal Innovation 5000 Patents Issued
R&D Commitment $5.2B 15% 14% 16% 6% 3% Cisco IBM Microsoft Intel HP Internal Innovation R&D as Percent of FY09 Revenue Source: Yahoo Finance, Company Financial Statements, analyst estimates used for IBM, Intel and HP FY09
Market Expansion Market Acceleration New Market Entry Buy Acquisition Strategy
Best In Class Mutually Beneficial Long-Term Partnership Partner Go-to-Market / Investment Strategy
Cisco is truly dedicated to customer success. Our mission is to shape the future of the internet by creating unprecedented value and opportunity for our customers, partners, shareholders, and employees. John Chambers Chairman and CEO
Cisco s History of Customer Satisfaction 10+ years of history formally tracking customer satisfaction Central part of Cisco s culture Customer satisfaction tied to the bonus plan 5 4.01 4.06 4.15 4.22 4.33 4.33 4.30 4.33 4.37 4.37 4.36 4.41 4.44 4.43 3 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Cisco annual survey; measured on a scale of 1 to 5 in fiscal years
history culture customers technology
welcome to the human network.