Cisco Tech Talk Enterprise Switching - s2.q4cdn.com provides a reconciliation between GAAP and...

Cisco Tech Talk Enterprise Switching

Muninder Singh Sambi, Sr. Director, Product Management, Enterprise Switching

March 5, 2018

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Forward-Looking Statements

This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Cisco’s filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forward-looking statements.

GAAP Reconciliation

During this presentation references to financial measures of Cisco will include references to non-GAAP financial measures. Cisco provides a reconciliation between GAAP and non-GAAP financial information on our website at www.cisco.com under “Financial Info” in the “Investor Relations” section.https://investor.cisco.com/investor-relations/financial-information/Financial-Results/default.aspx


Enterprise Trends Driving Digital Transformation

Cyber

SecurityIoTMobility


These Digital transformation poses challenge for Enterprise IT

Annually spent on Network

Operations, Labor & Tools$60B

Resources

Data growth

Connected devices

Threat surface areas

An evolved world needs a network evolved.

95%

75%

70%

Of OpEx spent on changes and troubleshooting

Of policy violations are due to human error

Of network changes are performed manually

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public

Intent-based Network Infrastructure

DNA Center

Assurance

Analytics

Policy Automation

Powered By Intent. Informed by Context.

Digital Business

SecurityMobile IoT

Network

Intent-based Networking enables Digital transformation for Enterprise IT

The Catalyst 9000


Programmable

Integrated

Security

IoT

Convergence

Mobility

Cloud Ready

Design

UADP Modern Operating System:

Open IOS®XE

Common

Licensing

Industry’s Unmatched High Availability

Multi-Gigabit (mGIG) Performance/scale

UPoE (60W) Scale

Cat 9000 Foundation of Intent

Based Networking

Customers3100+ …and growing!

WINNER: Overall Product of the Year

Shipping since June 21, 2017


Catalyst 9000 –Fastest ramping product in Cisco

At the heart of this vision is truly reinventing

networking, which we started last June with the

launch of the intuitive network. I’m so proud to say

the Catalyst 9000 is the fastest ramping product

introduction we’ve had in our history, and is a

fantastic example of the innovation we’ve

delivered over the past two years.

– Chuck Robbins

“


Price 10% to 20% over Essentials

Price 10%+ over Advantage


Customer Momentum with Intent-Based Networking

Education Healthcare

GovernmentRetail and Enterprise

Challenge

Large healthcare deployment, challenges to

manage 1000s of connected devices

• Connect and configure 100,000

connected devices in the next 5 years

• Profile and ensure devices are secure

• Enable security profiles and provide a

single pane of glass

Business Outcomes• 67% reduction in cost to carry out tasks

such as device provisioning and policy

• Lowered issue resolution cost by 80%

with a simplified dashboard, integration

with other Cisco tools, and automation of

monitoring and troubleshooting – providing

visibility across the network

Customer Study

Children’s Hospital LASecures Connected Devices with Intent-based networking

Reduce Network

Provisioning Cost

67%*

Improve Issue

Resolution Cost

80%*

Reduce Cost of

Security Breach

48%*

* Source: Internal TCO Analysis with Large Enterprise Customer

** Capex Reduction based on converging IOT Networks

“It is clear that SD-Access is the future; it is the only way we can

keep up with the explosion of connected devices”

-Marty Miller, Technology Specialist, CHLA

Solution: Cisco DNA Center™, Cisco SD-AccessTM, and

Catalyst® 9000 platform

Challenge

Large Korean Retailer building out a new global HQ in

Seoul, South Korea

• Create future-proof networking infrastructure for the

new headquarters

• Build smart workplace environment for optimized

communication and collaboration

• Secure a flexible and high capacity infrastructure

Business Outcomes• 85% reduction in cost to carry out tasks such as

device provisioning and policy

• Time-to-market: Faster User-onboarding, from 3

week to 8 hours

• Enhanced stability through a software-based

technology, allowing flexible network segmentation

on SD-Access Fabric.

Customer Study

AmorepacificFuture Proofs its Business with Intent-Based Networking

Reduce Network

Provisioning Cost

85%*

Improve Issue

Resolution Cost

Reduce Cost of

Security Breach

* Source: Internal TCO Analysis with Large Enterprise Customer

** Capex Reduction based on converging IOT Networks

Solution: Cisco DNA Center™, Cisco SD-AccessTM, and

Catalyst® 9000 platform, Cisco Aironet 3800s

“Our trust in Cisco’s ability to be a step ahead of the curve by

providing a solution that deals with changing trends such as

IBN was fundamental”

-Jinwoo Kim, Director of IT, AmorePacific


Cisco’s intent-basednetworking

Shift IT time to business focus

Savings in network

provisioning time

67%

Improved issue

resolution

80%

Reduced security

breach impact

48%

Reduced operating

expenses

61%

*Source: Cisco Internal TCO analysis based on input from large enterprise customer (actual results may vary)

** CapEx reduction based on converging IoT networks


Intent-based Networking – The Journey so far..

Policy-Based

Automation

Business Policy

Translation

Segmentation

Analytics &

Assurance

Everything as a sensor

Telemetry

Historical & Real-time

Intent Based

Infrastructure

Secure foundation

Programmability

Virtualization

Launched in Cisco Live

Barcelona 2018

© 2017 Cisco and/or its affiliates. All rights reserved. CISCO CONFIDENTIAL

The guarantee that the

infrastructure is doing what

you intended it to do

What is ? Assurance

Continuous Verification

Successful Rollouts, Operational Continuity

Insights & Visibility

Minimize Downtime, User Productivity

Guided Remediation, Automated Updates, System optimization

Corrective Actions

IT Productivity

Ongoing Intent-Based

Networking Innovation

Give IT Time Back

Improve Issue ResolutionConverting Data into IT Insights!

Mobile

Full network visibility

End-to-end QoE

Application visibility

and control

Fast network remediation

IoT devices

Mergers

Applications

Challenges

Workgroups

WirelessRouters Switches

DNA Assurance

43% IT time is spent on troubleshooting


Questions?

FORWARD-LOOKING STATEMENTS

These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as continued execution on our strategy, our ability to continue to innovate and grow our business, the continued criticality of the network to the business success of our customers, the momentum of our intent-based networking portfolio, continued progress in shifting our business toward more software and recurring revenue, and our ability to continue to execute well, deliver profitable growth and return capital to our shareholders) and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in routing, switching and services; the timing of orders and manufacturing and customer lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters, and governmental investigations; our ability to achieve the benefits of the announced restructuring and possible changes in the size and timing of the related charges; man-made problems such as cyber-attacks, data protection breaches, computer viruses or terrorism; natural catastrophic events; a pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets, currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on February 20, 2018 and September 7, 2017 respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three and six months ended January 27, 2018 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of these presentation slides and the related conference call.

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