John Chambers Chairman and CEO

25 Years May 19, 2014

Cisco IBSG, 2011; Fortune 500, 1987, 2011. Olson and van Bever, Stall Points, 2008. Baselinemag.com, 2009.

25 Years Ago

Recover

Survive Next 25 Years

Growth & Survival of Companies

Market Transitions

Customer Driven…  “In” Architectures

Catching Market Transitions

Network Centric

Unconnected

Video Mobile

Packet Switched Routed

DC

Application Centric

Cloud

Internet of Everything

Data, Voice

Bridged Fixed Circuit Shared

Market Transitions

1 Outcomes & Results

2 Cloud & New Consumption Models

3 More Software vs. Hardware

4 More OpEx vs. CapEx

1 Internet of Everything 2 Big Data / Analytics

3 Clouds…  Private,  Hybrid,  Public  

4 Software Defined Integrated Architectures. ACI, SDN, NFV, SLN

5 Mobility.. Security.. Collaboration

6 Technology Architectures

Acquisition Strategy

Architecture for Service Providers

Unified Data Center Intelligent Network

Cloud  Services…  Mobile  /  Fixed

Client Access

Vide

osca

pe /

Med

iane

t

Col

labo

ratio

n

IP Core Packet Core

RAN Backhaul

Foundation for the Next-Generation Internet NDS

Macro Cells 2G/3G/4G

Small Cells Wi-Fi Femto

Set Top Box

Speed…  Business  Outcomes Dramatic Savings Agility…  Growth New Revenue Generation Core vs. Context Software Architecture Commits

Cisco Application Centric Infrastructure (ACI) Consistent Policy Across Cloud, DC, WAN and Access

DATA CENTER ACCESS WAN

APIC EM APIC EM

CLOUD

APPLICATION PROFILE

USER PROFILE

Application Network Profile User/Things Network Profile

ACI Simplifies Operations

PRE-ACI POST-ACI

Weeks Minutes

OPEX

CAPEX

PRE-ACI

41% Cost

Savings

POST-ACI

Network Operations

Network and Policy Instantiate

Translate Setup and Policy

Source: Cisco IT

Cisco  ACI…  TCO,  Architectures,  Outcomes

75%

NETWORK VIRTUALIZATION

+ MERCHANT SWITCHES

$40 OpEx*

$100 VM Tax

$14 Network

$25 OpEx $15 Network

$154

$40

APP CENTRIC

CISCO

Starting Level of Automation

SW Only SDN Stops Here

ACI = Apps. + Network + Security

Open  Source,  API’s,  &  Open  Stack

ACI Extends to Enterprise & WAN

CapEx 27%

OpEx 73%

Before ACI

35%

75%

No White Box Advantage

Cost of Integration HW, OS, Overlay

Multiple SW release trains & Features

Multiple Vendors / Maintenance & Support

Troubleshooting

3 Year CapEx ToR

$5,500

$4,000

White box $2,500

Standalone Sw / Rtr

SW $1,000 per year

Branded Switch

Integrated HW / SW

27%

Source:  *  Deutsche  Bank  9/27/2013:  “Whitebox Switches  Are  Not  Exactly  a  Bargain”

Custom & Merchant Strategy

Densities Costs / Savings Power Throughput Performance

Time to Revenue Flexibility

Set-top box:

1 ASIC

UCS:

7 ASICs

Cat3K:

2x ASICs

Cat4500 Linecard: 4x ASICs

Nexus 2-7K:

30 ASICs

100G DWDM: Optical ASIC

CRS-3

Linecard: 7 ASICs

CRS-3

Fabric card: 3 ASICs

MDS 9K: 9 ASICs

Nexus 9K: 3 ASICs

Custom Silicon Merchant

Security Problem

Changing Business Models

Dynamic Threat Landscape

Complexity and Fragmentation

New Security Model

Discover Enforce Harden

Scope Contain

Remediate

Detect Block

Defend

Network Endpoint Mobile Virtual Cloud

Quick Set SX10 & SX20 MX300 & MX200 G2

Profile 65/55 Single & Dual MX700 & MX800 TX9000 & TX9200

Codec SX80 & C-Series (C40, C60, C90)

For custom and industry applications

Standard Definition Endpoints

DX600 Series High Definition EX60 EX90 Jabber and WebEx

IP Phone Series Cisco IP Wireless Phone IP Conferencing

Self Learning Networks

Predictive Analytical Models

Automated Proactive Actions

Security Networks as a sensor

Application Centric

Application & Network Centric, Customer Outcomes Network Centric

Proactive, Automation Ease of Use Analytics Manual, Trial & Error

IoE Scale Enterprise Scale

Adaptive Security Analytics Reactive Security

Powering the Internet of Everything

Private

Hosted/ Managed

in Hybrid Cloud #1

Enterprise and Commercial

Service Provider

SaaS

in Cloud Infrastructure #1

Public (Low Cost)

Hybrid (Control)

Partner Clouds (High Value)

Platform for Internet of Everything #1

M2P

M2M

P2P

What  We’re  Doing  – Expanding Our Cloud Portfolio

Enterprise Private Clouds

Public Clouds

Partner Clouds Cloud Services

& Applications

$19 $4.6

$14.4

Smart + Connected Cities and Countries

Growth Jobs Inclusion Education Healthcare Innovation Urbanization…  S+CC Security

Barcelona Israel Balanced  Budget…

$500M to Infrastructure Value Creation $3.6B

– Mobile Collaboration $1.6B – Travel $180M – Connected Learning $170M – Smart Xmission Grid $139M – Smart Buildings $124M – Smart Parking $67M – Smart Water $58M – Smart Lighting $47M – Smart Buses $28M

The Internet of Everything Fast Innovation

Secure Big Data Infrastructure,

Analysis, and Action Big Data

Repository Fast Data

Processing Action

Enablement

Associate Tablet

Digital Signage Connected Mobile Experience (CMX)

Video Analysis Wi-Fi Gesture

Recognition

Internet of Things

Predictive Maintenance

Plant-wide Wireless

Flexible Manufacturing

Secure Plant

Remote Expert & Scheduling

Profits…  Near  Zero  Downtime…   5% / 33% Profits

Analytics…  Optimize,  Isolate  Fault  

Innovation…  New  Products  

Security…  Risk  Mitigation

Jobs…  Labor  Optimization

7th Largest  US  City  …  Smart  City

Sensor LED Streetlights

Fiber-optic Cabling & Wireless Network

Results: $2B in Savings – Shorter Commute Time – Less Fuel – Increased Safety

Improve  Operations,  ↑  Cust. Experience

Transportation Center – Video, GPS, Wi-fi, Surveillance

↓  Traffic,  ↑  Efficiency  Of  Public  Transit  

Riders…  Mobile  Apps,  Digital  Signage…  See When Buses Arrive, Best Route, Real-time Updates

Results: ↓  Congestion,  ↑  Sat.  <50%  to  90%

“ We believe IoT is the biggest shift to hit our industry since the Internet itself.”

The Internet of Things Deutsche Bank Markets Research May 6, 2014

Cisco  Growth  Drivers…  #1  IT  Company…  “Customer-In”

Cloud / DC Mobility Security

Emerging Services Collaboration Video Software

Internet of Everything

Outcome & Results

ACI, SDN, SLN, NFV Intercloud

Architectures

Business Outcomes / Results

Compute, Storage, Network

ACI (SDN, SLN) Internet of Everything

Process & Organization Changes Intercloud