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    Cisco UCS

    City of Beaumont

    Wednesday, July 06, 2011

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    CISCO CONFIDENTIAL i Cisco UCS

    Cisco Systems, Inc. (Cisco) is extremely pleased to present this proposal for your evaluation andconsideration.

    Please note that the information contained in this proposal is proprietary and confidential to Cisco, and is furnished inconfidence to you with the understanding that it will not, without the express written permission of Cisco, be used or disclosedfor other than proposal evaluation purposes.

    For public sector customers, please note that this proposal may include information of a type that Cisco considers to be a tradesecret and not subject to disclosure under any public records act. In the event such information is provided to you, Ciscoretains all rights and remedies available under the public records act and requests that you provide us with written notice andan opportunity to respond in the event that a third party seeks disclosure of all or part of this response pursuant to suchstatutes. Cisco recognizes that public sector customers have particular procurement rules and processes that they must follow,and we will gladly work with you to ensure that we appropriately address and follow your procurement rules and processes.

    This proposal is not, and should not be construed as, an offer to contract with Cisco. If you ultimately decide to purchase any orall of the products and/or services described in this proposal directly with Cisco, then all terms and conditions (inclusive of allbusiness terms and conditions) will only be pursuant to a final and definitive written agreement, in the form of either: (i) Ciscosstandard U.S. Terms and Conditions of Sale (a copy of which is available at:www.cisco.com/legal), (ii) an existing writtenagreement between us, or (iii) a mutually negotiated final written agreement. For purposes of clarity, for a direct relationshipwith Cisco, the final agreement would replace any other suggested terms and conditions, and Cisco hereby takes exceptions to

    any such purported terms and conditions. Notwithstanding anything to the contrary, Cisco makes no representations,warranties or covenants in this proposal (including without limitation as to any products, services, service levels, third-partyproducts or services or interoperability) separate from, in contravention of, or in addition to those contained in the finalagreement, and any purported representation, warranty or covenant in this proposal shall be of no force or effect. If you desirea direct relationship with Cisco, we would welcome the opportunity to discuss mutually acceptable terms and conditions.

    Alternatively, you may choose to purchase the Cisco products and services through a Cisco authorized reseller, and the termsand conditions, and all pricing, would be governed by your contract with such reseller. Cisco cannot, in any fashion, dictate orcontrol resale pricing. For further information about Ciscos authorized resellers, please see:www.cisco.com/en/US/partners/index.html

    Any information contained in this proposal relating to pricing or to future technology under development may be subject tochange, including as a result of the negotiations which might occur in contemplation of the f inal agreement. If any pricing isprovided by Cisco in this proposal, it is provided solely for your convenience and budgetary purposes only, and does notconstitute a bid or an offer from Cisco. Any other pricing will be provided directly by an authorized reseller, and any discussionsrelating thereto should be held directly with such reseller and not Cisco. Any descriptions, documentation or references to thirdparty products not on Ciscos price list are provided for informational purposes only and shall not be considered a part of

    Ciscos proposal.

    Thank you for considering Cisco for this exciting opportunity. We look forward to further assisting you with your technologyrequirements.

    http://www.cisco.com/legalhttp://www.cisco.com/legalhttp://www.cisco.com/legalhttp://www.cisco.com/en/US/partners/index.htmlhttp://www.cisco.com/en/US/partners/index.htmlhttp://www.cisco.com/en/US/partners/index.htmlhttp://www.cisco.com/legal
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    CISCO CONFIDENTIAL ii Cisco UCS

    Table of Contents

    1 EXECUTIVE SUMMARY ............................................................................................................... 11.1 CITY OF BEAUMONTS CHALLENGES........................................................................................... 11.2 CISCO SOLUTION ...................................................................................................................... 21.3 CUSTOMER BENEFITS ............................................................................................................... 21.4 RETURN ON INVESTMENT.......................................................................................................... 31.5 WHY CISCO? ............................................................................................................................ 41.6 CONCLUSION ............................................................................................................................ 4

    2 SOLUTION OVERVIEW ................................................................................................................ 62.1 SOLUTION OVERVIEW................................................................................................................ 62.2 SOLUTION COMPONENTS........................................................................................................... 6

    2.2.1 Cisco UCS ...................................................................................................................... 62.2.2 Cisco Nexus Series Switches ......................................................................................... 72.2.3 Cisco Unified Fabric ........................................................................................................ 72.2.4 Cisco WAAS ................................................................................................................... 72.2.5 Cisco MDS 9000 Series Multilayer Switches.................................................................. 72.2.6 Cisco Nexus 1000V Series Switches ............................................................................. 8

    3 SERVICES & SUPPORT OVERVIEW .......................................................................................... 93.1 SERVICES OVERVIEW ................................................................................................................ 93.2 FINANCIAL OPTIONS .................................................................................................................. 9

    3.2.1 Cisco Capital ................................................................................................................... 93.2.2 Step Financing .............................................................................................................. 103.2.3 Multi-Term Financing .................................................................................................... 10

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    CISCO CONFIDENTIAL Cisco UCS1

    1 Executive Summary

    1.1 City of Beaumonts Challenges

    As your business evolves, infrastructure sprawl becomes a significant ITchallenge. Your IT organization may need to manage and maintain multiple,redundant data centers and a highly distributed environment. This increasesTCO and limits productivity and business growth.

    City of Beaumont is looking for infrastructure consolidation solutions that let yousimplify, standardize, and reduce server, network, and storage infrastructure.These solutions can help you lower costs, control resource sprawl, improvecapital asset use, and maintain high levels of customer service by:

    Improving asset utilization: Data centers need to simplify serverconnectivity, cabling, data center infrastructure, administration, andmanagement improving operational efficiencies and cost savings.

    Reducing distributed IT assets: The number of remote offices andworkers continue to grow each year. These distributed assets can have ahigh cost of structure with low utilization and are more difficult tomanage. City of Beaumont needs a solution to reduce cost of remote IT,improve remote employee productivity, and accelerate data protection bycentralizing IT resources.

    Reducing OpEx: It is an ongoing challenge to reduce power and coolingconsumption to cut costs and align with green business practices.Increasingly dense, rack-mount and blade servers running multiplevirtualized environments place increased power and cooling demands ondata center architectures. City of Beaumont must address the need to

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    CISCO CONFIDENTIAL Cisco UCS2

    increase business efficiencies and cut costs in order to optimizebusiness operations.

    To meet these challenges, organizations must keep a check on the infrastructuresprawl. By moving away from multiple data centers and distributed environmentstowards powerful, unified, and virtualized infrastructure models, you can trulyleverage the power of an agile and efficient data center.

    1.2 Cisco Solution

    Cisco infrastructure consolidation solutions let City of Beaumont simplify,standardize, and reduce server, network, and storage infrastructure. They helpyou lower costs, control resource sprawl, improve capital asset use, and maintainhigh levels of customer service. Ciscos infrastructure consolidation solutionsinclude:

    Server consolidation: Simplify server connectivity, cabling, data centerinfrastructure, administration, and management

    Network consolidation: Increase flexibility, simplify network andstorage management, and help ensure consistent data lifecyclemanagement

    Branch IT consolidation: Reduce cost of remote IT, improve remoteemployee productivity, and accelerate data protection by centralizing ITresources

    1.3 Customer Benefits

    With Cisco infrastructure consolidation solutions and services, you can

    consolidate and relocate IT infrastructure quickly, cost-effectively, and with lessrisk. Cisco infrastructure consolidation can help you to:

    Improve asset utilization: Consolidating multiple networks in the datacenter into a single network will promote significant reductions in CapExand OpEx. Centralized management capabilities maximize overall datacenter infrastructure uptime and reliability, helping to improve businesscontinuity. Asset consolidation helps eliminate underutilized capacities,leaving fewer assets to manage and further reducing TCO.

    Optimize energy consumption: Cisco recognizes the need to providepower-efficient solutions for the data center and network, and is uniquelypositioned to provide these solutions across disparate infrastructure inthe data center and align with green business practices.

    Reduce branch IT costs: By leveraging virtualization in the data centerto aggregate branch services and using fewer, centralized computingand storage resources can reduce branch IT costs. Virtualization alsohelps improve IT agility by more flexibly determining which servicesremain local vs. centralized.

    Reduce facilities costs: Data center facilities, including power, cooling,physical housing, cabling, physical security, and fire protection, arecrucial parts of the Cisco Data Center Architecture. These elements are

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    CISCO CONFIDENTIAL Cisco UCS3

    integrated into a seamless end-to-end system, supported by system-wide management capability, to provide the essential facilitiesinfrastructure needed to support the Cisco Data Center Architecture.

    1.4 Return On Investment

    Infrastructure consolidation can help City of Beaumont increase savings, reduceenergy consumption, and improve efficiencies. With Ciscos end-to-endinfrastructure consolidation solutions, you can lower your TCO as well asimprove your ROI. Consider the following:

    Cost saving: Cisco Unified Fabric provides consolidation and higherutilization of previously separate resources, reducing the number ofserver I/O adapters and cables needed by up to 50 percent and loweringpower and cooling costs significantly through the elimination ofunnecessary switching infrastructure.

    Energy efficiency: Cisco provides several energy-efficient solutions fordata centers. For example, the Cisco UCS power supplies are 92percent efficient. Similarly, the Cisco Nexus family of products gives datacenter designers the opportunity to transform data center infrastructurefrom an IFT to an UFT. The UFT provides significant benefits related tothe facilities, power, cooling, floor space, active device, and cablinginfrastructure.

    Investment protection: The Cisco MDS 9000 Family-based storagesolutions provide a better ROI by reducing costs and enabling easydeployment. The Cisco MDS 9000 Family interoperates with legacysolutions, thus enabling transparent migration to a consolidated SAN andhelps protect your existing investments.

    Listed below are a few ROI/TCO calculators that help you to estimate the returnsyou can generate for your business:

    Branch IT consolidation ROI tool:https://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspx

    Unified Fabric TCO calculator:http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.html

    UCS ROI tool:https://express.salire.com/Modules/Analyses/Edit/config.aspx

    MDS power calculator:http://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator

    /dashboard.html

    Cisco power calculator:http://tools.cisco.com/cpc/

    UCS power calculator:http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/

    https://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspxhttps://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspxhttps://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspxhttp://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.htmlhttp://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.htmlhttp://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.htmlhttps://express.salire.com/Modules/Analyses/Edit/config.aspxhttps://express.salire.com/Modules/Analyses/Edit/config.aspxhttp://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator/dashboard.htmlhttp://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator/dashboard.htmlhttp://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator/dashboard.htmlhttp://tools.cisco.com/cpc/http://tools.cisco.com/cpc/http://tools.cisco.com/cpc/http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/http://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/cisco_ucs_power_calculator/http://tools.cisco.com/cpc/http://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator/dashboard.htmlhttp://www.cisco.com/assets/prod/sn/ps6409/mds9000_power_calculator/dashboard.htmlhttps://express.salire.com/Modules/Analyses/Edit/config.aspxhttp://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.htmlhttp://www.cisco.com/assets/cdc_content_elements/flash/dataCenter/nexus5k_tco_calc/cisco.htmlhttps://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspxhttps://express.salire.com/Go/Cisco/Cisco-Branch-IT-Consolidation-ROI-Tool-results.aspx
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    CISCO CONFIDENTIAL Cisco UCS4

    1.5 Why Cisco?

    Cisco provides a standards-based data center networking architecture thatevolves the network into a platform that optimizes application, server, andstorage resources. The architecture-based approach helps enable increasedefficiencies, enhanced performance, and decreased energy use, while providingthe ability to respond quickly to change. Ciscos technology innovations provideCity of Beaumont with these powerful and scalable market-leading technologysolutions:

    Award-winning energy-management capabilities: Unlike competitorswho focus on labeling their products green based on few parameters,Cisco takes a holistic approach to environmental responsibility with itsCisco Networked Sustainability Framework. As the leader in thenetworking industry, Cisco aims to reduce its effect on the environmentand is committed to initiatives to address a wide range of green issues.Cisco is developing networking architectures and solutions to enablecustomers and employees to mitigate their environmental effects andachieve their green goals.

    Exceptional virtualization capabilities: Virtualization capabilities builtinto the Cisco infrastructure consolidation solutions bring network,compute/storage, and virtualization platforms closer together to provideunparalleled flexibility, visibility, and policy enforcement within virtualizeddata centers. Cisco is the only vendor with server and switch platformsnatively designed for integrated virtualized services.

    Industry-leading expert services: Cisco brings a unique network-based approach to data center virtualization and optimization and

    provides a unified view of data center resources interdependenciesacross infrastructure, compute, and application layers. Cisco providesinnovative services, tools, processes, best practices, and expertise toaccelerate the transformation of your data center. To capitalize on theadvantages of virtualization, consolidation, migration, and innovativeCisco data center technologies, Cisco and our partners take anarchitectural approach to data center design and solutions. Thisapproach provides greater flexibility and longevity of data centersolutions, facilitates faster decision making, and helps you realize the fullvalue of your data center investments.

    Market-leading technologies:Ciscos technology innovations provideCity of Beaumont with powerful and scalable solutions. The Cisco UCS isa next-generation data center platform that unites computing, network,

    storage access, and virtualization into a cohesive system designed toreduce TCO and increase business agility.

    Outstanding investment protection: Unlike competing solutions thatrequire forklift upgrades, Ciscos solutions are designed to be adoptedincrementally without disruption to existing management and operationsprocedures.

    1.6 Conclusion

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    CISCO CONFIDENTIAL Cisco UCS5

    Todays volatile global economy requires Cityof Beaumont to make the best use of

    resources while delivering the same or betterproducts and services. To grow, however,organizations like City of Beaumont mustinvest in ways that not only meet todays goals,but also position them for competitiveadvantage in the economic upturn.

    Cisco offers innovative products and solutionstogether with a broad range of servicesprograms to accelerate customer success,delivered through a combination of people,processes, tools, and partners, resulting in high levels of customer satisfaction.

    Danno Wilkerson would be pleased to discuss Ciscos solution to grow in difficult

    environments with you. Danno can be reached at [email protected] or(919)392-4570.

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    CISCO CONFIDENTIAL Cisco UCS6

    2 Solution Overview

    2.1 Solution Overview

    With Cisco infrastructure consolidationsolutions and services, you canconsolidate and relocate IT infrastructurequickly, cost-effectively, and with less risk.Cisco infrastructure consolidation can helpCity of Beaumont improve operationalefficiencies and cost savings, throughstandardization and asset consolidation;reducing TCO.

    2.2 Solution ComponentsCiscos infrastructure consolidation products and solutions are built to acceleratethe delivery of new services through end-to-end provisioning and support forvirtualized and non-virtualized systems. All while meeting the business, service,application, and operational requirements of tomorrows data center. CiscoNexus family of switches delivers tightly integrated network services as part ofboth a server virtualization strategy and a broader data center virtualizationstrategy. Cisco Unified Fabric simplifies server connectivity, cabling, data centerinfrastructure, administration, and management. WAN optimization acceleratesapplications and data over the WAN, optimize bandwidth, empower cloudservices, and provide local hosting of branch IT services, all with industry-leadingnetwork integration. The products and systems are listed below:

    2.2.1 Cisco UCS

    The Cisco UCS is a next-generation data centerplatform that integrates a low-latency, lossless10 Gigabit Ethernet unified network fabric withenterprise-class, x86-architecture servers. Thesystem is an integrated, scalable, multi-chassisplatform in which all resources participate in aunified management domain.

    For more information, please see:

    Cisco UCS:

    http://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdf

    Cisco UCS Express:

    http://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.html

    http://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdfhttp://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.htmlhttp://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.htmlhttp://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.htmlhttp://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.htmlhttp://www.cisco.com/en/US/partner/prod/collateral/contnetw/ps5719/ps11273/data_sheet_c78-625000.htmlhttp://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns340/ns517/ns224/ns944/at_a_glance_c45-523181.pdf
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    CISCO CONFIDENTIAL Cisco UCS7

    2.2.2 Cisco Nexus Series Switches

    The Cisco Nexus Family of data center-class switchesis comprised of a full portfolio designed to allowcustomers to migrate to 10 Gigabit Ethernet and UnifiedFabric in a granular, cost-effective manner as part oftheir data center transformation strategies.

    For more information, please see:http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.html

    2.2.3 Cisco Unified Fabric

    The convergence of LAN and multiple types of storage traffic on a single lossless

    10 Gigabit Ethernet link is referred to as Unified Fabric. Cisco Unified Fabric is akey building block for both traditional and virtualized data centers. Cisco UnifiedFabric unifies storage and data networking to deliver seamless convergence,scalability, and intelligence with reduced TCO and faster ROI.

    For more information, please see:http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance

    _c45-617345.pdf

    2.2.4 Cisco WAAS

    Cisco WAAS is a comprehensive WAN optimization and application accelerationsolution that is a key component of the Cisco Borderless Network and Cisco DataCenter and Virtualization architectures. Cisco WAAS allows IT departments to

    consolidate data centers, deliver desktop virtualization, deploy new, rich-mediaapplications, and deliver high-performance cloud computing and SaaSapplications.

    For more information, please see:http://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white

    _paper0900aecd8051d5b2.html

    2.2.5 Cisco MDS 9000 Series Multilayer Switches

    The Cisco MDS 9000 Series Multilayer Directorsand Fabric Switches elevate the standard forenterprise-class SAN switches. Providing industry-

    leading availability, scalability, security, andmanagement, the Cisco MDS 9000 Series allowsbusinesses to deploy the high-performance SANs with low TCO. Layering a richset of intelligent networking and services features onto a high-performance,protocol-independent switch fabric, the Cisco MDS 9000 Series addresses thestringent requirements of large data center storage environments.

    For more information, please see:http://www.cisco.com/en/US/products/hw/ps4159/index.html#~all-prod

    http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance_c45-617345.pdfhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance_c45-617345.pdfhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance_c45-617345.pdfhttp://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white_paper0900aecd8051d5b2.htmlhttp://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white_paper0900aecd8051d5b2.htmlhttp://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white_paper0900aecd8051d5b2.htmlhttp://www.cisco.com/en/US/products/hw/ps4159/index.html#~all-prodhttp://www.cisco.com/en/US/products/hw/ps4159/index.html#~all-prodhttp://www.cisco.com/en/US/products/hw/ps4159/index.html#~all-prodhttp://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white_paper0900aecd8051d5b2.htmlhttp://www.cisco.com/en/US/prod/collateral/contnetw/ps5680/ps6870/prod_white_paper0900aecd8051d5b2.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance_c45-617345.pdfhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/at_a_glance_c45-617345.pdfhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9670/brochure_c02-466008.html
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    CISCO CONFIDENTIAL Cisco UCS8

    2.2.6 Cisco Nexus 1000V Series Switches

    A VM access switch, specifically designed to meet the challenges of todays VMenvironments, the Cisco Nexus 1000V Series Switch is an intelligent softwareswitch implementation for VMware vSphere environments running the Cisco NX-OS operating system.

    For more information, please see:http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet

    _c78-492971.html

    http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.htmlhttp://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.html
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    CISCO CONFIDENTIAL Cisco UCS9

    3 Services & Support Overview

    3.1 Services Overview

    Cisco Services make networks, applications, and the people who use them workbetter together.

    Today, the network is a strategic platform in a world that demands betterintegration between people, information, and ideas. The network works betterwhen services, together with products, create solutions aligned with businessneeds and opportunities.

    Cisco and our partners use a lifecycle services approach of prepare, plan,design, implement, operate, and optimize phases that help align business andtechnical requirements. The lifecycle services approach helps companies likeCity of Beaumont to accelerate their success with your data center andnetworking solutions while increasing your ROI.

    3.2 Financial Options

    3.2.1 Cisco Capital

    The marketplace is changing how organizations acquire and consumetechnology. More than ever, its critical that you have the flexibility to acquire andrenew technology assets aligned to your business strategy, while maintainingpredictable budgets.

    Cisco Capital provides a complete financing solution for all components of thevirtualized, cloud-based data center: compute, network, and storage. Whetheryou are building a new facility, or upgrading your existing data center platform,our competitive interest rates help lower the cost of migration. We also offerattractive trade-in options so you can refresh your existing server and bladetechnology sooner. And, by providing one contract for hardware, software, andservices, we enable greater transparency of total cost of ownership and a simplerinternal cost recovery model.

    Cisco Capital, a fully owned subsidiary of Cisco, exists to provide organizationsthe ability to:

    Align payment to revenues

    Avoid upfront set up costs

    Achieve greater business flexibility through technology refresh, withoutincreasing OpEx

    Keep your technology assets off your balance sheet

    For more information on Cisco Capital, please visit:http://www.cisco.com/web/ordering/ciscocapital/cf/na/index.html

    http://www.cisco.com/web/ordering/ciscocapital/cf/na/index.htmlhttp://www.cisco.com/web/ordering/ciscocapital/cf/na/index.htmlhttp://www.cisco.com/web/ordering/ciscocapital/cf/na/index.html
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    CISCO CONFIDENTIAL Cisco UCS10

    3.2.2 Step Financing

    Data Center Business Advantage financing from Cisco Capital

    provides afinancial architecture that covers all components of the virtualized, cloud-baseddata center (compute, network, and storage); lowering costs, easing migration,accelerating refreshes, and simplifying intercompany charging.

    Step Financing from Cisco Capital provides you with the ability to structurepayments to meet your business needs. For enterprise customers, minimizingcash outflows during the build-out or expansion of your data center allows you toconserve budget for other strategic IT projects. For providers of cloud services,Step Financing can help align the payments you make to your expectedrevenues from new service offerings.

    By structuring payments to meet the expected benefits of your data centerproject, you can minimize business risk and accelerate the time to projectsbreak-even point.

    3.2.2.1 How Step Financing Works

    Customers specify in advance the payment intervals they want for the term of thefinancing agreement. Cisco Capital determines the payment amounts requiredbased on prevailing rates, customer credit standing, and the timing and durationof each series of payments.

    3.2.2.2 Benefits

    Lower payments during build-out and expansion, or solutionimplementation and ramp-up phases

    Alignment of payments to expected consumption growth

    Flexibility in asset acquisition

    Ability to acquire using CapEx or OpEx budgets

    Lower total cost of acquisition and accelerated break-even

    Visit the Cisco Capital website to learn more or contact Danno Wilkerson to seehow Data Center Business Advantage Step Financing from Cisco Capital canhelp you. For more information, visit:www.cisco.com/go/ciscocapital

    3.2.3 Multi-Term Financing

    Data Center Business Advantage financing from Cisco Capital

    provides afinancial architecture that covers all components of the virtualized, cloud-baseddata center (compute, network, and storage); lowering costs, easing migration,accelerating refreshes, and simplifying intercompany charging.

    Multi-Term Financing from Cisco Capital allows you to forgo the upfront purchaseof capacity that is not immediately required, and provides you with the ability torefresh server blades or expansion cards more frequently over time. Forexample, by initially financing your chassis, and then adding blades only asrequired, you are able to better align benefits to investment and reach the break-

    http://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapital
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    CISCO CONFIDENTIAL Cisco UCS11

    even point on your data center project earlier.

    Multi-Term Financing also allows you to avoid asset tracking and management

    issues through the co-termination or synchronization of the financing periods ofyour blades, cards, and chassis.

    3.2.3.1 How Multi-Term Financing Works

    Customers enter into a financing agreement for the chassis and base kit, andthen finance additional blades and expansion cards on an as needed basis overtime.

    3.2.3.2 Benefits

    Lower upfront cost of acquisition

    Alignment of investment with capacity requirements

    Reduction of idle capacity

    Better asset management

    Ability to acquire using CapEx or OpEx budgets

    Pay as you grow acquisition capability

    Visit the Cisco Capital website to learn more or contact Danno Wilkerson to seehow Cisco Data Center Business Advantage Multi-Term Financing from CiscoCapital can help you. For more information, visit:www.cisco.com/go/ciscocapital

    http://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapitalhttp://www.cisco.com/go/ciscocapital
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