Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Architecture Positioning

Infrastructure Positioning

Service & Support

SolutionPiranha Program — May 2011Partner Version

Cisco Confidential—For Cisco Use Only

Bluecoat

Bluecoat Positioning

Why Cisco

Comparison

Architecture Positioning

Infrastructure Positioning

Service & Support

Solution

Company Profile

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only.

Bluecoat Selling Strategy: Identify customers needing WAN Optimization services and leverage Bluecoats integrated security features to win sale over competitive offerings. Primarily leverages their installed base

Revenue: $496M in FY2010

Gross Margins: 66-68%

Profit: Operating Margin of about 17% vs. Cisco ~22%

Product/Services Revenue Split: 60% Product / 40% Service

Financial Strategy: Acquire (Packeteer) to broaden DC play. Outsourcing SW/HW development to acquired Indian company S7

Core Products/Technology: WAN Optimization with integrated security

Portfolio Breadth: Limited to WAN Optimization

Channels Strategy: SP managed services, VAR/Resellers

Bluecoat Company Profile

Product Portfolio Products Offered

WAN Optimization (Primary Revenue Source)

Bluecoat Proxy SG platform , Proxy soft client, and software www.bluecoat.com

WAN Optimization Market Share (Source: Dell’Oro)

2007 2008 2009 2010

Cisco Not Reported 23% 25% 23%

Bluecoat Not Reported 23% 26% 29%

1 3

Company Profile

Why Cisco

Comparison

Architecture Positioning

Infrastructure Positioning

Service & Support

Solution

Bluecoat Positioning

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 42

Bluecoat Positioning Cisco AssertionStop the Bad, Accelerate the Good: Unique message in market leveraging traditional capabilities with incremental functionalities

Response: Choose a integrated systems approach featuring WAAS to simultaneously reduce complexity AND drive workplace transformation

WOC Leader in Gartner Magic Quadrant: Validates strategy of integrating WAN Optimization platform with security product

Response: Choose a product delivers best in class acceleration features and performance – not just a one box solution that offers limited limited features and performance

Only Vendor to Offer Complete Application Optimized Branch Security Solutions: Bluecoat is only vendor offering a “turn key” branch solution for security and acceleration

Response: Choose a WAN Optimization solution that truly supports branch consolidation - not just application acceleration/security

Bluecoat Positioning

Company Profile

Bluecoat Positioning

Comparison

Architecture Positioning

Infrastructure Positioning

Service & Support

Solution

Why Cisco

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 53

Why Cisco

Borderless Network Architecture for unmatched functionality: routing, switching, WLAN, security and WAN Optimization

A systems approach to networking lowers TCO, improves availability and drives workplace transformation

Workplace transformation is enabled by Cisco’s unique combination of video, mobility and application optimization

Advanced Services reduce implementation risk: wireless assessment, planning & design, migration, optimization and more

Best Practices in Competitive Engagements

Lead with Cisco’s Borderless Networks Architecture – Bluecoat does not have an architecture sell for the enterprise

Emphasize Cisco best-of-breed positioning with WAAS - Superior technology and performance

Create opportunities to engage with the customers for building relationships, educate and out position Bluecoat

Expect Bluecoat to aggressively price proposals – Educate customer on short comings of Bluecoat products and solutions

Leverage competitive material on SMO competitive portal at wwwin.cisco.com/competitive

Company Profile

Bluecoat Positioning

Why Cisco

Architecture Positioning

Infrastructure Positioning

Service & Support

Solution

Comparison

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 64

Bluecoat – Comparison

Why Not Bluecoat Questions to Ask CustomersBusiness Reasons Unpredictable platform lifecycle due to continued Packeteer

integration

Point solution - requires multi-vendor network increasing TCO

Ongoing outsourcing migration = product/business instability

Messaging goes against current need to consolidate branches

Business Questions How will Bluecoat ensure investment protection when

hardware integration is driving major changes?

How much will it cost your staff to work with multiple vendors and operate a multi-vendor network?

How will Bluecoats increased outsourcing affect product delivery?

How will Bluecoat embrace branch consolidation - they support branch IT sprawl?

Solution and Architecture Reasons Gaps in solutions – No branch consolidation features, limited

video support

Requires multiple vendors which increases complexity

No validated designs, only high level marketing documents

ProxySG platform architected for security – not WAN Optimization resulting in limited abilities

Solution and Architecture Questions Where will consolidation and video support come from?

How will Bluecoat integrate with other vendors?

How will Bluecoat ensure designs function optimally?

How can Bluecoat provide best of breed features for both WAN Optimization and Security?

Technology/Product Reasons ‘2 in 1’ solution comes at the expense of limited features,

performance

Ongoing outsource of development to S7 India (acquired) causing product instability and roadmap delays

Bluecoat (including Packeteer) platforms running 3 different, diverse operating systems

Technology/Product Questions What is the WAN Optimization and security performance

compared to competitive offerings?

What will Bluecoat do to ensure product quality and timely delivery of features/platforms?

How will Bluecoat simplify software upgrade management when 3 different OS’s are being used

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Infrastructure Positioning

Service & Support

Solution

Architecture Positioning

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 75

Architecture Positioning

Element Cisco Differentiators Bluecoat WeaknessBorderless Networks

A medianetready borderless network ensures that your network not only delivers a high-quality video experience but also help ensure that your network is ready for chzngingbandwidth demands

Cisco Telepresence performance is assured with BN Cisco EnergyWise delivers energy efficiency and savings to IT and

facilities Integrated into the network, EnergyWise, along with its

Orchestrator console, controls and monitors power for a wide variety of devices

Limited video feature support. No other BN support

No energy management features Mobility support limited to software

client. No other mobility features

Data Center and Virtualization

Unified enterprise switching, storage, computing and cloud service solutions

An Architectural Framework for the “Evolving Data Center”: Cisco Data Center Business Advantage represents an architectural framework for connecting technology innovation to business innovation. It is the foundation of the Dynamic Networked Organization

Innovate Quickly and Efficiently: Cisco Data Center Business Advantage represents a fundamental shift in the role of IT into a driver of business innovation. Businesses can create services faster, become more agile, and take advantage of new revenue streams and business opportunities. Cisco Data Center Business Advantage increases efficiency and profitability by reducing capital, operating expenses and complexity. It also transforms how a business approaches its market and how IT supports and aligns with the business, to help enable new and innovative business models

No DCV support

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Infrastructure Positioning

Service & Support

Solution

Architecture Positioning

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 86

Architecture Positioning

Element Cisco Differentiators Bluecoat Weakness

Keep Control of Your Data Center Architecture: The Cisco Data Center Business Advantage architectural framework is delivered as a portfolio of technologies and systems that can be adapted to meet organizational needs. Customers can adopt the framework in an incremental and granular fashion to control when and how they implement data center innovations. This allows them to easily evolve and adapt the data center to keep pace with changing organizational needs

Be Free to Choose: Data Center Business Advantage preserves the customers ability to work with other industry leaders to solve a particular IT or business problem. Because Data Center Business Advantage is built around an ecosystem-centric framework and open solution stacks, customers can easily work with your existing data center vendors and Cisco’s industry-leading community of development, design, and deployment partners

Collaboration Unified enterprise communications (VoIP), conferencing, instant messaging, email and collaboration solutions

Any to Any: We uniquely enable people to work together naturally anywhere, on any device, with any content Cisco lets people use the devices they have today [Apple, Android,

RIM, latest tablets], safely Cisco integrates TelePresence with a laptop WebEx conference

with a smartphone audio call, simply, so everyone has the best meeting possible

With Cisco collaboration solutions, people can work with individuals in other companies, using video, unified communications and presence as if they were inside a single company

Cisco keeps costs low and flexibility high through cloud deployment models and standards, vendor and platform interoperability

No Collaboration support

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Infrastructure Positioning

Service & Support

Solution

Architecture Positioning

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 97

Architecture Positioning

Element Cisco Differentiators Bluecoat WeaknessVideo Everywhere: Video is an essential part of effective, natural collaboration. Only Cisco provides the breadth of applications and endpoints to make pervasive video a reality Cisco made voice over the network the standard for business. We

are doing the same for video Only Cisco has the broadest suite of video endpoints to integrate

video into the fabric of how we work Only Cisco has a business video architecture [medianet] for scale,

speed and reliability Cisco is driving a new wave of video experiences that change the

way we communicate, collaborate, and enjoy entertainment — in the home, at work, and on the go

New Collaborative Workspace: Cisco is converging social, mobile, video, and unified communications capabilities, to shape the new collaboration experience Advancement in collaboration is influenced by the rapid changes in

the consumer market No other company empowers individual collaboration style as well

as Cisco with the broadest choice of how to communicate based on preference, location and device

Cisco makes work personal again, using a network-based approach to quickly locate the most relevant experts and information and cut through information overload

Unlike others, Cisco provides deep integration with existing software and hardware infrastructure so IT doesn’t have to rip and replace

In this new, more connected world, no other company offers a network-based approach to keep organizations safe because the network provides greater security and policy management control

Cloud Collaboration: When it comes to deploying collaboration, one size does not fit allOnly Cisco provides the combination of: A broad set of collaboration applications including voice, video,

web and customer care Flexible deployment models across private, public and hybrid clouds Virtualized applications AND desktop clients

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Architecture Positioning

Service & Support

Solution

Infrastructure Positioning

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 108

Infrastructure Positioning

Element Cisco Differentiators Bluecoat WeaknessRouting Full featured enterprise routing for campus, branch

offices and WAN Integration of routing platforms with security, switching,

WLAN, and WAAS

No routing support

Switching Full featured enterprise switching for campus, distribution access and branch office deployments

Integration of switching platforms with security, WLAN and routing

No switching support

Security Enterprise firewall, content security, email security, VPN, userpolicy establishment and control (TrustSec)

Identity Services Engine for integrated wired and wireless identity, access control, and management platform (Positron)

Reasonable security features – but limited performance – platform shared with WAN Optimization function

WLAN Advanced RF features across a family of 11n APsdelivering Enterprise-Class RF performance, reliability and lower TCO

WCS 8.0 with unified wired/wireless provisioning, management,monitoring and troubleshooting for borderless user services (Lumos)

WLAN controller on Cisco Services Ready Engine provides zero-touch deployment and centralized management for wireless service rollout in the branch offices

No WLAN support

WAAS Full featured enterprise WAAS with integration into branch office ISR platforms

WAN Optimization supported on shared platform with security. Limited features

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Architecture Positioning

Infrastructure Positioning

Solution

Service & Support

Piranha Program | © 2011 Cisco Systems, Inc. and/or its affiliates. All rights reserved. Cisco Confidential—For Cisco Use Only. 119

Service & Support

Bluecoat Services and Support Are Weak Compared to Cisco

Bluecoat’s services staff is limited when compared to Cisco’s and spread very thin geographically

Bluecoat doesn’t operate parts-repair facilities in all major geographies it sells in - significant delays in replacing bad hardware possible

Cisco’s services address Borderless Networks at an architectural level; Bluecoat’s services do so only at a technology level

Cisco’s optimization services have no peer and include extensive smartnetwork analytics; Bluecoat offers nothing of the kind

Cisco’s on-line support tools are so powerful they resolve 80% of network issues; Bluecoat reports no similar metric. Why not?

Cisco outscored all competitors when Gartner recently asked customers to rate their vendors’ professional services

Cisco consistently ranks first when surveyed customers to rate vendors’ technical support; what top rankings can Bluecoat cite?

J.D. Power has certified Cisco fives times for its “outstanding” technical service experience but has never done so for Bluecoat

Bluecoat offers no proactive technical support; Cisco provides SMARTnet Total Care, Smart Care and Smart Call Home

Company Profile

Bluecoat Positioning

Why Cisco

Comparison

Architecture Positioning

Infrastructure Positioning

Service & Support

Solution

© 2011 Cisco Systems, Inc. and/or its affiliates. Cisco and the Cisco Logo are trademarks of Cisco Systems, Inc. and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1007R) C96-666379-00 05/11

10

Solution

Why Cisco Services Why Not Bluecoat Services Why It MattersDeep Borderless Networking Expertise: Cisco’s services bring deep, industry-leading expertise to wireless, security, routing/switching and rich media (medianet)

Bluecoat’s network expertise is limited WAN Optimization and security

Cisco’s expertise addresses all Borderless Networks Architecture technologies to deliver a complete service solution for customers. Bluecoat only addresses a small fraction of customer needs

Smart Professional Services: Cisco’s Network Optimization Service comes with smart analytics that use intuitive graphics to monitor compliance with industry best practices

Nothing in Bluecoat’s or its partners’ portfolios of professional even begins to compare with the rich functionality and business value of Cisco’s smart network analytics

The smart analytics in Cisco’s Network Optimization Service give customers a simple means to boost operational excellence, mitigate risks, cut cost and complexity, and benchmark their policy compliance

Cisco Innovation: Cisco has led innovation Application Acceleration and WAN Optimization for several years. Cisco has consistently innovated and delivered technology and products that provide the best mix of performance, value, industry leadership to our customers backed with the best support services in the industry

Bluecoat’s WAN Optimization platform has gained traction due its approach of integrating WAN security and WAN Optimization in the same appliance. While Bluecoats security features are on par with the industry – its WAN Optimization features, performance, and reliability are sub-par

Cisco WAAS platform was designed to provide the optimal experience for remote workers who must access enterprise application across the WAN. Focusing on this has resulted in WAAS being a top rated product both with industry analysts and customers. Bluecoat’s lacklustre WAN Optimization product does little to improve remote workers application access satisfaction and performance

Quality Leadership: Cisco ranked first in service and support when 684 customers rated their suppliers in the 2010 version of CIO Insight magazine’s annual Vendor Value survey. Cisco’s services also ranked first in a recent customer survey by Infonetics

No customer ratings of technical or advanced services by vendor-neutral third parties ever mention Bluecoat as topping or even challenging Cisco in quality and effectiveness of support

To achieve their full potential, Borderless Networks need effective enablement and support by services that range from planning to optimization. Customers can rest assured that they can gain the necessary services breadth, quality and effectiveness from Cisco. The same is untrue of Bluecoat