Cisco Capital: Financing Business Innovation- Rahul sharma
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Transcript of Cisco Capital: Financing Business Innovation- Rahul sharma
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
Cisco Capital:Financing Business Innovation
Rahul SharmaHead – Channel SalesCisco Capital IndiaNov 26, 2014
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
Pace of change
Business confidence
Global Economy
Geo-political concerns
Currency volatility
Equity markets volatility
Inconsistent market expansion
Dynamic Technology Environment
Challenging Times…
BYOD Regulation ComplianceCloud
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
Capital optimization
Flexible end-of-lease options
Lower cost of acquisition
Expenses matched with arrival of benefits
Tailoredfinancialsolutions
Attractive migration choices
Optimized lifecycle management
Less financial and operational risk
Maximized shareholdervalue
Financing Business Innovation
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
Financial lifecycle management
Acquire the technology that aligns to the business vision and needs
Leverage flexible financial
foundation according to
equipment life
Include maintenance and lock in pricing for
multiple years
Flexible refresh and upgrade
options. Flexibility to
adapt as needs change
Proper/ green disposal
Eliminate asset decommission
costsSimplicity of
return
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
The CFO…is an important IT budget decision maker
41% of organizations say it is the Head of Finance who controls the IT budget.
2013 Gartner FEI CFO Technology Study; 2013 Forrester “Financing in the Current Macro Economic Environment (APJC)” July 20132013 Forrester Consulting “Financing in the Current Macro Economic Environment (EMEA),” May 2014
“ The CFO continues to lead the IT investment decision process. 25% said the CFO alone authorizes all technology investment decisions, while less than 10% said that the CIO alone authorizes IT investment decisions.”
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
Fundamental shift in purchase decisions…What assets should I acquire?(‘What to Buy’ = investing decision)
How should I pay for them?(‘How to Buy’ = financing decision)
Very different motivationsVery different expectationsVery different assessment criteriaVery different conversations
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
Drives Deal Growth
Enables Total Solution Selling
Increases Account Control
Enables Sales
Expands Customer Conversations
Increases Cash Flow & Profitability
Partner Benefits of End User Financing
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
Cisco Capital’s Value Proposition
Larger Deal Size20% to 35% bigger
Higher Win RateRange 3% (low) to 12%(high)
Lower Discount0.5% lower discount
Why Cisco Capital Our Goal
Every 1% of increase in financing penetration =
$100M in incremental Cisco bookings
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Just Switch It (JSI) Migration
Low Rate offer (3%*) on duration of financing term when migrating from an installed Catalyst 6500 to Catalyst 6800 or Nexus 7K/9K
Cisco Capital India offers/capabilities
Expires: 25 July 2015
Subsidised Financing for
Multi-year (MY) Services Contracts
Very low interest rate financing on end-user MY services contracts of 24 months or more.
Expires: 25 July 2015
Data Center Risk Pool
Increased residuals taken for: All UCS deals & standard Vblock configurations as part of the converged infra- structure solution.
Expires: 25 July 2015
Payment Deferrals
Cisco Capital can structure three or six month deferral periods (with the interest rolled into financing payments) that allow our customers to align payments to project cycles
Expires: 25 July 2015
Commercial - Subsidised
Interest offer (WIP)
Interest rates subsidised by upto 400 basis points (depending on the credit rating of the customer)
Expires: 24 April 2015
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
• Migrate your customers’ existing Cisco Catalyst® 6500 equipment to Cisco Catalyst® 6800 or Cisco Nexus™ 7000 or 9000
• Enjoy financing at 3% ROI on the full contract value of the new purchase (products, services and maintenance)
• Fixed rate for the entire financing term
• Tenure: 24 – 60 months
• Valid until July 25, 2015
Just Switch It - Catalyst 6500 Migration
3% interest on the entire purchase* (*other terms and conditions apply)
Catalyst 6800X Nexus 9000 Nexus 7000
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
Windows Server 2003 Reaches End of Life July 14, 2015
SecurityComplianceCost
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To help ease your transition Cisco Capital is offering deferred payments – no need for any upfront cash investment. Defer your payments for 6 months with predictable payments with this special offer.*
• Enhance UCS residuals
• 6 months free from payments
• Available for all Cisco hardware, software, bundled services and complementary Microsoft technology
• Applies to all $1-out and FMV financing
• Offer valid through July 25, 2015
*Additional offers available and vary per country, contact your local representative or visit www.ciscocapital.com for additional information
Windows Server 2003 Migration Financing Offer
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
Windows Server 2003 migration to Cisco UCS Mini
Scenario Estimated Price (S$)
A Platinum Cisco UCS Mini Bundle for Windows Server 2003 migration for a <50 employees company
$75,393
Cash price: $75,393Rental : $2,097/month Savings: $110
The productivity benefits of UCS are the same whether you pay US$75K upfront or
US$1.99K per month
• Estimates based on current financing rates. Actual rent will be quoted on a case by case basis. Terms and conditions apply.
UCS Migration Promotional
Offer
Rental : $7,057 Cost Saving : $12,611
Standard Rental Pricing
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15
Windows Server 2003 migration to Cisco UCS Mini with VDI
ScenarioEstimated Price (S$)
A Platinum Cisco UCS Mini Bundle for VDI deployment in an enterprise environment for 500 employees
$266,663
Opportunity to migrate, prior to July 2015 EOL, at
just $7.06K per month versus $267K in CapEx …
saving $12K in the process
Cash price: $266,663Rental: $7,421/month Cost savings: $493
Rental: $7,057Cost savings: $12,611
* Estimates based on current financing rates. Actual rent will be quoted on a case by case basis.** Minimum financing amount for promotional offer is S$129,000. Terms and conditions apply.
Standard Rental Pricing
UCS Migration Promotional
Offer
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
• Immediate budget availability to meet the July 2015 EOL deadline
• Enhanced residuals to lower your total cost of acquiring on premise solutions
• Potential to buy and lease back your existing in-place servers
• Total solution financing – UCS, Microsoft, required services
• Down to 100k
Speak with Cisco Capital about Windows Server 2003 Migration to Cisco UCS
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
Financing the Unified Data Center
Simplify their adoption of virtualization Lower costs, avoid budget constraints, protect against
obsolescence, contribute to green strategy, discipline of equipment replacement
Increased percentage of non-Cisco products that can be financed for Unified Computing System (UCS) deals
Increased residuals on UCS deals Increased residuals for all third-party hardware as part of a Cisco Data Center converged
infrastructure opportunity Available on residual-based leases when financed with Cisco Capital
Customer benefits
Sales benefits
Visit www.cisco.com/capital/contacts to identify your local Cisco Capital representative to learn more!
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
Offer Criteria
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19
Commercial - Subsidised Interest offer (WIP)• Offer Overview: Interest rates subsidised by upto 400 basis points (depending
on the credit rating of the customer)
• Availability Period: Dec 2 launch to the end of Q3 FY15
All deals booked by last day of Q3FY15 qualifies (regardless of funding date)
• Credit: All transactions are subject to individual credit approval
• Financing Term Eligibility: 36 months
• Minimum transaction size: US$100k
• Financing Products: Full Payout Lease or Loan
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
Partner Actions
Review Installed base for Cat 6500Identify opportunities for migration to Cat 6800 or Nexus 7k or Nexus 9k
Microsoft 2003 migration
Meet with PAM team for data on installed base to
Spending time with partners to review installed base
The deals need to be flagged off as "Capital required” (or suitable capital program option) in SFDC.
Thank you.