Cisco Corporate Overview
Market Capitalization Leadership
Cisco
Cisco
$129B
$110B
Top 12
Competitors
Top 11
Competitors
$71B
$60B
Top 11
Competitors
Cisco
$23B
$10B
January 1995
November 2005
November 2009
Market Share Leadership
Security
Digital Video: IPTV
100%
100%
80%
80%
60%
35%
Switching: Modular/Fixed
100%
Cisco/SA
65%
80%
60%
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
Cisco
Voice
Wireless: LAN
100%
80%
80%
60%
60%
60%
40%
40%
20%
20%
20%
0%
0%
0%
28%
Cisco
Routing: Edge/Core/Access
100%
80%
60%
100%
Cisco
54%
24%
Web Conferencing
80%
Linksys
60%
Cisco
100%
80%
57%
80%
Networked Home
100%
Cisco
70%
Storage: Area Networks
100%
40%
Cisco/SA
45%
50%
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
Cisco/WebEx
Market Share Leadership
35%
24%
50%
57%
28%
65%
67%
54%
45%
54%
70%
70%
35%
28%
24%
Only company with leadership across all segments
Integration as sustainable
57%
competitive advantage
Diverse45product
portfolio for
%
long-term stability
50%
Strong Geographical Balance
Total $9.0B
(13%) Y/Y
$5.0B
$0.4B
$0.9B
$1.0B
$1.8B
(10%) Y/Y
2%Y/Y
(30%) Y/Y
(6%) Y/Y
(15%) Y/Y
Japan
Emerging
Markets
Asia
Pacific
Europe
U.S. and
Canada
Q1 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.
Collaboration/
Web 2.0
Network as
Platform
Network of
Networks
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
Presentation_ID
© 2006 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
8
Cisco: The Convergence Innovator
One Seamless, Transparent Customer Experience
Enterprise
Service
Provider
Small
Consumer
Public
Sector
Commercial
Video
Voice
Mobility
Data
the
Information
Data
Freedom
Presentation_ID
© 2006 Cisco Systems, Inc. All rights reserved.
network as the
platform
Mobility
Cisco Confidential
Voice
Video
Entertainment
Communications
9
Creating Sustainable Differentiation
Through Platform Leadership
Architectural Plays
Solutions &
Business Models
Systems
Products
Presentation_ID
© 2006 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
10
collaboration
customers
employees
culture
Cisco allows people to
community
connect
That’s the
locally and globally
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
Market
Transitions
Open
Communication
Giving Back
Trust/
Fairness/
Integrity
Inclusion
Continuous
Improvement/
Stretch Goals
Innovation
culture
Quality
Team
No
Technology
Religion
Collaboration /
Teamwork
Empowerment
Fun
Drive
Change
Profit
Contribution
(Frugality)
Customer
Success
Cisco’s
culture
Global
Approach
customers
drive our strategy—we deliver long-term
relationships and customer satisfaction
based on customer needs
Business Architecture +
Technology Architecture
Business
Architecture
Network as the
Platform
Technology
Architecture
Services-led
Solutions
Cisco
3.0
culture
employees
…are our competitive
advantage
1/3
sales
1/3
engineering
1/6
service
1/6
other
63K+
165+
450+
employees
countries
offices
the idea of
community
culture
no longer
applies to just
towns
cities
or countries
your
community
is wherever you need to interact.
Networking
Academy
we believe
Volunteerism
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
Build
700
Patents Filed
Annually
30
5000
Major Labs
Worldwide
Patents
Issued
Internal
Innovation
R&D Commitment
$5.2B
15%
14%
16%
6%
3%
IBM
Microsoft
Cisco
Intel
Internal
Innovation
R&D as Percent of FY09 Revenue
Source: Yahoo Finance, Company Financial Statements, analyst
estimates used for IBM, Intel and HP FY09
HP
Market
Expansion
Market
Acceleration
New Market
Entry
Buy
Acquisition
Strategy
Best In
Class
Long-Term
Partnership
Mutually
Beneficial
Partner
Go-to-Market /
Investment Strategy
1993
1997
1999(cont)
1999
1994
Acquisition
Summary
2000(cont)
2001
2005(cont) 2007
2004
1998
1995
2002
2006
1996
2000
2008
2003
2005
1999
2009
“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
Central part of
Cisco’s culture
10+ years of
history—
formally tracking
customer
satisfaction
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
welc ome to
the human network.
