© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

Rebecca JacobySVP and Chief Information Officer, Cisco

Future of IT… Beyond Technology

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2

The Future of IT

Everyone and EverythingIs in the Cloud

Hybrid Private and Public Cloud

Core vs. Context

New Ways of Working

Collaboration ShrinksTime and Space

Virtualization of Knowledge

Video ChangesEverything

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 3

Technology and BusinessModel Transitions

Impact of Technology on IT Value

Cost Center

Leading with Technology

Enabling Business

Past Present Future

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Impact of Economics on IT Value

Productivity Agenda

50%25%

25%

Run the Business

Grow the Business

Change the Business

33%

33%

33%

Base Case

45%

30%

25%

Growth Agenda

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 5

Transformation to a Services Organization

Technology

Process

Culture

Architecture Virtualization Borderless Network Collaboration

Process and Operations Investment Planning Core IT Processes

Organizational Change Measuring Success Change Management

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 6

Architecture: Everything as a Service

Borderless Network CollaborationVirtualization

Data Center to ”Cloud”

Client Experience at Enterprise Scale

Secure

Mobile

Global

New Way to Work

Video

Decision MakingAdvantage

New BusinessModels

Network As the Platform

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 7

Process: Investment Planning in the Future

BusinessPartnership

IT Strategic AlignmentArchitectural Review

Strategy Alignment

Corporate AlignmentAnnual Investment

IT Portfolio

Value Discussion

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 8

Culture: Defining Business Value of IT

Operational Functionality

Business Experience

Strategic Growth

Big Bet Oriented Trade 0ffs: Features/Performance

Evolve Experience/Preserve Revenue Acceleration of Business Value

Productivity for Business by Reducing Cost Per Use

Benchmarking/Tiered Services

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 9

Ongoing Cost Process Cycle Time

Cost/Use of Service Tiered SLA

Value of Enablement Time to Enablement

Time to Capability Time to Scale

Acceleration of Value Time/ease to implementation

Time/Cost Saved by Re-Use Time to Provision a Service

Value of IT:

Operational Functionality

Business Experience

Strategic Growth

Business Results IT Effectiveness

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 10

IT Services View Client Alternatives

Bringing it All Together

QuoteSell Order Bill

Client Experience

Business Service

Foundation Storage “Silver”

Virtual Machine Acceleration

Pricing Identity Management

Offer Config

Partner Space B2B Customer

Data

Network

Demo(plus Custom)

Option 1 Option 2 Option 3

BRD Capability Bill of IT

Reuse Drives Down

Reuse Drives Down

IntegrationService Level Risk

Reuse?Highest

Architectural

Basis

Cost

Scope

Viable?

Reuse ReducesSlowestTime to Capability

Fast (Scale?)

Custom Services External Service

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 11

Culture: Accelerating Change

Organization

Strategic Alignment

IT Change Management Team

Leading in aServices Organization

ITCohorts

The “Individual Readiness” Aspect of the Operating Model

CareerWorkgroup

Leadership Individual

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12

Services Organization: Operate and Innovate

Operations: 3000 People Make

Architecture Happen

Process: Manage Service

Framework; Drive Consistency

Innovation

Solutions Architects Domain Architects

Enterprise Architecture (Centralized)

Partner Architecture Teams (Federated)

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 13

Virtualization Example: How to Gain Value WhilePreparing for the Future

Operational Functionality(Coordinated Operations)

Business Experience (Business Processes)

Strategic Growth

(Innovation)

Demonstrating Additional 30% Cost Reduction in Opex Using Cloud and UCS Together

15 Minute Provisioning Robust Virtualization Mindset,

78% of New Requirements Virtualized

DeVirt and Virtualization, 1MW saved over 12 Months, 37% Virtualized

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 14

Business Intelligence Becomes Decision Making Advantage

Operational FunctionalityPhysical Data Model Optimization

Business Experience Migration: Re-Point or

Re-Engineer

Strategic Growth

Customer Intelligence Center: $470M Incremental Bookings. Global Potential: $5B Over3 Years

Future: Video; IWE

30% Reduction in Time to Deliver Component Quoting Process: Refresh

Times cut by 65%; 16X Faster Processing Increases Number of Concurrent Users

Designed for Re-use, Resiliency, Security

Avoiding $2M/yr in Power; $7M in Capital (CPU, Storage)

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15

20,000 Global Sale Employees in 90 Countries and

270 CitiesTechnology

Process

Culture

Video Communications Event Environment Integrated Workplace

Global Functional Community:Relevant Content, Personalization and Sales Results…Beyond Event

One Cisco, One Sales Community Virtual Reality Game Virtualization of Knowledge

Transforming to a Service Organization:Global Sales Experience

Global SalesExperience

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 16

The Foundational Service Element:Integrated Workforce Experience

Key Tenets

1. Headline news2. Architectural plays3. Sales “Care Abouts”

Future: My View

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 17

Employee ViewCollaboration Within the Enterprise

Customer/Partner ViewCollaboration Externally Through Cisco.com

CollaborateInternally and

Externally

Future: My View

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 18

The Value of Cisco’s IWE Implementation:One Third The Cost in One Third The Time

Without Leveraging an Integrated Architectural Approach

6–7 Months

Sales

6–7 Months

Manufacturing,Engineering, HR

6–7 Months

IT,Corp Comms,

Addnl. Communities

6–7 Months

Marketing, Finance,

Legal Services

By Leveraging Our IWE Platform, We Will Deliver a Transformational Wayto Work Across 12 Functions in Just 12 Months

Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10

7 MonthsLIVE Aug 09

IWE for Sales

4 MonthsLIVE DEC 09

ManufacturingEngineering, HR

3 MonthsMar 10

IT, Corp CommsAddnl. Communities

4 MonthsJul 10

Marketing, FinanceLegal, Services

Core IWE Platform and Services

New Functional Services

New Functional Services

New Functional Services

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 19

Global Sales Experience PlatformIn

ter-

Clo

ud In

tegr

atio

nA

pps

Inte

grat

e S

ervi

ces

from

Mul

tiple

Clo

uds

Global Sales Experience (Any Device, Any Where) 20,000 Users, 90 Countries, 88 Continuous Hours

Cisco TV,Cisco TelePresence,

Video on Demand

Global Platformfor Sales

Cisco WebExEvent Center Event Site

Video on Demand, TelePresence, Live

Broadcasts

Sales News and Content, Sales Applications,

Community Collaboration

Power Session, Interactive Sessions, Live Q&A

Event Registration, Agenda, Information Booths, Games,

Chat, Live Q&A Sessions

Identity and Profile Management, Single Sign-on SOA Data Exchange Orchestration

Cisco.com

InXpo.com

Salesforce.com

WeEex.com

Inter-Cloud

Network Infrastructure

Community, Calendar, Blog,RSS, Content Rating,

Search/TaggingCisco.com

IM, Whiteboard,WebEx Event Center,

WebEx ConnectWebEx.com

Bookings, Opportunities,Commissions, Sales Funnel,

NotificationsSalesforce.com

Event Registration,Agenda, Games,

Info BoothsInXpo.com

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 20

Our Future… Beyond Technology

Technology

Process

Culture

• Virtualized Architectures that Leverage Internally and Externally Sourced Services will Form a foundation for high value IT

• Leading IT Organizations will Adapt Fundamental Processes Beginning with Investment Planning.

• Successful IT Organizations will Drive Broad Cultural Changes to take Advantage of Industry Transitions

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 21