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© 2003, Cisco Systems, Inc. All rights reserved.
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Cisco Systems:
Innovating for The Enterprise
Ammar Hanafi
Vice President
New Business Ventures
Cisco Systems
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2
A 360 Degree View of Business Innovation
Products
(What)
R&D
Platforms
Solutions
Networking
Customers
(Who)
Channels
(Where)
Logistics/
Supply
Chain
Customer
Experience
Value
Chain
Processes
Source: Managing Business Innovation, Sawhney and
(How)
7659_03_2003_c4
Wolcott,
Kellogg School of Management, Oct. 2002
© 2003, Cisco Systems, Inc. All rights reserved.
Revenue
Model
3
The Context For Innovation:
Our Customers
Increasing Our Market Share
in Core Markets
Growing Our Revenues
in New Growth Markets
Customer Success
= Cisco Success
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The Technology Strategy
No Compromises
Intelligent
Services
Convergence - Data, Voice, Video, Storage
Security
Manageability
Performance
Routers and switches
Silicon
Hardware
Lower cost
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Investment
Protection
Lasting architecture
Generational approach
5
The Innovation Cycle
Robust
Secure
Intelligent
Global
Information
Adaptable
Network
Fair
Scalable
Intelligent
Services
Innovation
Performance
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Investment
Protection
© 2003, Cisco Systems, Inc. All rights reserved.
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Investment in Technology Innovation
R & D as % of Revenue
20%
15%
10%
5%
0%
Q2 ‘02
Intel
Q3 ‘02
Microsoft
Q4 ‘02
IBM
Dell
Q1 ‘03
Cisco
Source: Yahoo Finance 7/17/03
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8551_08_2003
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Extending Our Core Business
with New Growth Markets
• Customer contacts /
partnerships
• Contiguity of businesses
• Mastery of technology
• End-to-end system
extension
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Where We’re Spending:
Core and New Growth Markets
Commercial
• Security
• Telephony
• Wireless /
Mobility
C
O
R
E
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Enterprise
Service
Provider
• Security
• Telephony
• Wireless /
Mobility
• Storage
Networking
• Metro
• Converged
packet networks
• VPN
• Cable
• Voice
Routing, Switching, and Software
© 2003, Cisco Systems, Inc. All rights reserved.
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Systems Approach: A Foundation for Growth
Future:
HA
QoS
Multicast
Virtualization
Security
Application
Orientation
IP Communications
Network Management/Provisioning
Wireless LAN • Storage Networking
Routing • Switching • Optical
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8551_08_2003
© 2003, Cisco Systems, Inc. All rights reserved.
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New Enterprise Reality
Past: Separate
Security
Points
Present: Hybrid Future: Convergence
WLAN
Storage
Area
Networks
Data
Video
Conferencing
Voice
Video
Storage
IPTel /
Voice
Security
LAN
WLAN
LAN and
WAN
Secure
Converged
Network
Video
WAN
SAN
Voice
Network
Wired
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Wireless
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Network-Embedded Applications
PBX and Key
Systems
Firewall and
VPNs
Storage
Mobility
Virtualization Management
Software
Secure
Converged
Network
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The Secure Converged Network
as a Service Delivery Platform
• Single point of
control
• Ubiquity of
implementation
• Services are
end-to-end
• Cost advantage
NetworkEmbedded
Services
Packet Layer
Services
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Example: Full Service Branch of the Future
Access Routers
Embedded Security
& Security Appliances
CallManager Express™
and SRST
Catalyst Switches
Wireless LAN
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Presentation ID
© 2003, Cisco Systems, Inc. All rights reserved.
© 2002, Cisco Systems, Inc. All rights reserved.
14 14
Cisco Access Router Evolution
Achieving Full “Branch in a Box”
Intelligent Information
Network
Multi-Protocol
Routing, Access
Control, QoS
IOS Firewall/
Encryption
Content Delivery
Hybrid Keysystem
voice- VoFR, VoIP
Low Density
Switching
Advanced
Security
3700 Flagship
FSB Router
IP Telephony
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Voice Applications
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Summary: Key Technology Trends
• Virtualization of resources
• Virtualization of location
• Mobility of access
• Scalability of applications
• Embedded security
• Video
• Wireless
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The Network of Networks
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Enterprise User Productivity Driven By Access
Any Place, Any Time, Via Any Device
The
Network of
Networks
Applications
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© 2003, Cisco Systems, Inc. All rights reserved.