Cisco SMART Services Strategy And Business Value Realization Pete Davis June 18, 2013 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_1 Transforming Business… Starts with Smart What’s happening in the marketplace Services in changing the way IT is consumed Smart Services Why you should care? Portfolio review The shift is happening Customer Success Stories Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_2 Market Trends, Customer Expectations Consumption Models Outcome Based Rapid uptake of flexible consumption models and cloud based delivery Customers insisting on business outcome assurance and risk sharing Declining value on systems and services on their own Buyers Shifting buying power from IT to business Solutions Systems Leverage Customer preference for integrated solutions driven by need for simplicity Customers focused on software and services to maximize value of systems Business outcomes are the priority Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_3 “ Consumption Economics If you’re a tech company, the most dramatic effect of megatrends like cloud computing, managed services, and the rise of consumer technology won’t be felt in your company’s product line. The true disruption will be to your business model. Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_4 The Market Is Transitioning With Smart Opportunities REACTIVE MODEL REACTIVE Responding to problems as they arise, resulting in costly Incident-Based redundancies and overinvestment in constant monitoring Services PROACTIVE Support Services PROACTIVE MODEL Relies on awareness capabilities to detect potential problems and analytical capabilities to predict damage before it occurs Intellectual Capital Instrumentation Self Support Field Support Automation Analytics Remote Support Community “…automated and technology-enabled connectivity andservices intelligence, more effectively value…” “Smart will becometo increasingly important to deliver enterprises as more and more business and IT activities move into theHarvard cloud and onto theReview, network.” Business 2005 Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. Forrester, 2012 120309_5 Cisco Is On a Journey …and we want Partners to join us Future Vision 3 to 5 years: “The Internet of Everything” Industry Trends 1 to 3 years Data in Motion Now Cisco Campaigns Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_6 Cisco + Partners – Better Together Partner Resources Services Sales Profits (Process, Methodology, Tools) + Standardized Architectures Reduce Risk (Smart Business Architecture) Cisco Services (Cisco Branded Resale, Collaborative Services, Data Collection) Cisco-Branded Resale Services = Enabled Partner Services Offers Speed to Market Partner Investment Leading Practices Partner Strategy INCREASED Reduce Cost IMPROVED Differentiation Customer Satisfaction Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_7 What Is a Cisco “Smart” Service? Services that have Automated SoftwareEnabled Capabilities + …which collect Network Diagnostic Data + …which is analyzed and compared to …to provide Cisco’s Intellectual Capital Actionable Insight CISCO INTELLECTUAL CAPITAL networking innovation years leadership 25 50M installed devices 6M annual customer interactions Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 90K+ technical documents 120309_8 Cisco Is Strategically Positioned Support Leadership + World’s largest installed base Unique Differentiation Smart Services Analytics + 80% Automation Unparalleled intellectual capital Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_9 Cisco Services Strategy Evolution Toward a Full Solutions Portfolio Collaboration Consulting Services VXI VXI Industry Solutions CIO TS Smart Services Advanced Services Network Attributes Security QoS Policy Identity Presence Data Intelligence Analytics Datacenter ASICs IP NGN IOS Borderless Networks IOS TECHNOLOGY Custom Silicon Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. ASICS HARDWARE SOFTWARE SERVICES CEO Business Outcomes 120309_10 Smart Services by Market Segments Transformational Customers Cisco-Branded Services Collaborative Services Smart Net Total Care NOS with Smart Analytics Remote Management Services Focused Technical Services SMARTnet with SCH Partner Support Service One Portfolio (Assurance Services) Four Services Tiers (Reactive, Proactive, Pre-emptive, Operate) Single SKU to customer Smart Net Total Care NOS with Smart Analytics Remote Management Services Focused Technical Services SMARTnet with SCH SMARTnet with SCH Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. Partner Support Service Smart Care CPS 120309_11 Bringing the Best Together Analytics Smart Services + Install Base + Business Relevance Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_12 Simplifying IT Operations SITUATION Need to track dynamic network of 2,400 devices (switches, routers, wireless access points) over 3 campuses and numerous labs SOLUTION Smart Net Total Care Simplify contract renewal process Increase inventory tracking and coverage Increase awareness of network risks “We have one place to go to see all of our equipment. We can simplify upgrades, monitor only the alerts that matter to us, and do it in just minutes. What a difference.” David Robertson Network Service Delivery Manager RESULT Significant time and cost savings. SNTC seen as essential to inventory management Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_13 Questions? Confidential and proprietary information of Ingram Micro Inc. — Do not distribute or duplicate without Ingram Micro's express written permission. 120309_14