cisco green story june 2009
DESCRIPTION
This presentation is an overview of Cisco’s point of view and approach to Environmental Sustainability.This deck is intended to give customers and other stakeholders a high-level understanding of Cisco’s perspective on the Green priority — followed by a closer look at topics of more specific interest. Additional more specific content may found on Cisco Book at wwin.cisco.com/go/cbook.TRANSCRIPT
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 1
How to Use This Presentation
This presentation is an overview of Cisco’s point of view and approach to Environmental Sustainability.
This deck is intended to give customers and other stakeholders a high-level understanding of Cisco’s perspective on the Green priority — followed by a closer look at topics of more specific interest.
Additional more specific content may found on Cisco Book at wwwin.cisco.com/go/cbook.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential14800_09_2008_c1 2
Cisco’s Green Story
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 3
Cisco’s Green Story
Cisco’s EcoBoard
Cisco’sGreenVision
GreenerOperations
GreenerSolutions
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 4
Cisco’s Green Story
Cisco’s EcoBoard
Cisco’sGreenVision
GreenerOperations
GreenerSolutions
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 5
Collaboration
Capabilities
EcoBoard Cross-Functional Structure
Market Access DifferentiationMarket
EnablementPositioning/Competition
Collaboration
Corporate Sustainability Green Engineering Green to Market
Engineering Sales Communications
Initiatives / Task Force Teams
Gov’t Affairs
Legal
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 6
Cisco’s Green Milestones
2008 2009
Green Establishedas Corporate Priority
EcoBoard Formed
Cisco Joins EPA Climate Leaders
Green TaskForce Formed
Green Community Online Launched (Internal)
Green EngineeringTask Force Formed
Cisco Sets25% CarbonReduction Goal
John Chambers Supports Cap and Trade Washington DC Symposium; Cisco invited to USCAP
Ecolibrium Blog Launched (External)
Environmental SustainabilityWebsite Launched (External)
Partnership with NASA; IBSG Planetary Skin Announced
Cisco commits 10% reduction goal at Clinton Global Initiative
20072006
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 7
Cisco’s Green Ecosystem
CustomersCustomersEmployeesEmployees
Suppliers Suppliers Nonprofit/NGO/
VolunteerOrganizations
Nonprofit/NGO/Volunteer
Organizations
Local, Regional,and NationalGovernments
Local, Regional,and NationalGovernments
Regulatoryand Compliance
Bodies
Regulatoryand Compliance
Bodies
Industry and Financial Analysts
Industry and Financial Analysts PartnersPartners
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 8
Cisco’s Commitment
25% Reduction in GHG Emissions by 2012
Labs and data centers Cisco connected workspace Collaboration technologies
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 9
Cisco’s EcoBoard
Cisco’sGreenVision
GreenerOperations
GreenerSolutions
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 10
strategy
visionIf it can be connected to the Internet, it can be greener; the network is the platform for sustainability and green innovation
Green Collaborative Working Model
Initiatives & Programs to drive results Capabilities to sustain differentiationexecution
Cisco’s Green Vision
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 11
How a Small Part of the ProblemCan Be a Big Part of the Solution
According to the SMART 2020 Report, ICT could reduce global emissions up to 15% by 2020; five times its own footprint in 2020.
Key requirements to capture opportunity:
New Business ModelsEnergy Efficiency R&D InvestmentsNew EcosystemsNew Regulatory ModelsActive Carbon Markets
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 12
How a Small Part of the ProblemCan Be a Big Part of the Solution
Make Every Connection aGreener Connection
MONITOR
MANAGE
REDUCE
Electricity use in offices
Appliances in homes
Traffic flows in cities
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 13
Guiding Principles - ISO 14001 EMS
Cisco’s ISO 14001 Environmental Management System (EMS) is fully aligned with the EcoBoard’s vision, and influences all aspects of Cisco operations, products, customer solutions, and employee programs.
Cisco’s has been ISO 14001 certified since 2000 and currently covers approximately 70 percent of Cisco’s employees.
In FY08, approximately 50 percent of internal audits were conducted virtually, an increase from 30 percent in FY2007.
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Commitment to Standards
By actively participating in these organizations, groups, and others.
Cisco is playing a leadership role in the development and consistent application of environmental standards.
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Cisco’s EcoBoard
Cisco’sGreenVision
GreenerOperations
GreenerSolutions
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 16
Understanding Our Impact
Cisco’s Environmental Data Tool (EDT) is considered best-of-class by EPA Climate Leaders and an ISO 14001 best-practices technology.
EDT enables a corporate-wide facility inventory of GhG emissions and creates a framework for gathering and reporting Green accomplishments.
EDT can be used to track GHG emissions associated with electricity, natural gas, diesel fuel and/or light fuel oil, propane, and refrigerants used or consumed by facilities.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 17
Sustainable Company Operations
Energy efficiency and responsible use of scarce resources in our labs, data centers and office buildings.
Strategic procurement of green energy in our operations.
Lowering energy consumption and business air travel, and using technology to reduce our overall GhG emissions.
Understanding our carbon footprint and helping others understand theirs.
Involving employees in all aspects of the company’s environmental efforts.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 18
Headcount ChangeYear to Year
Revenue ChangeYear to Year
GHG Emissions from Air Travel Change Year to Year
FY05 FY06 FY07 FY08 FY06 to FY08
5% 13% 19% 20% 42%
13% 15% 23% 14% 40%
23%* 13%* 4% <1% 5%
From Carbon to Collaboration
Cisco’s 2006 Clinton Global Initiative Carbon-to-Collaboration commitment is to reduce emissions from business air travel by 10 percent, using FY06 as a baseline.
GHG Emissions from Air Travel Compared to Headcount and Revenue
*Percent change in GHG emissions based on previously reported FY04 and FY05 air travel emissions.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 19
Greener Events
Event Marketer magazine recognized Cisco’s 2008 CIO Summit with a silver award in the Best Green Event/Tradeshow category of its annual Ex Awards.
In May 2009, Cisco held its inaugural Virtual Strategic Leadership Offsite. More than 3,000 participants rated the event a 4.3 on a scale from 1-5 (5 being the highest rating).
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 20
Green Supply Chain Management
Cisco Consumer Business Group is now shipping 92 products in packaging that uses 38% less paper and blister packs that use 50% less plastic.
Ensuring that all Cisco products can be sourced, manufactured, and sold anywhere, any time, in a socially responsible manner.
In January 2008 Aberdeen’s “Supply Chain Executives Strategic Report” highlighted Cisco as a case study on how to drive end-to-end sustainability throughout the supply chain.
Cisco Consumer Business Group is now shipping 92 products in packaging that uses 38% less paper and blister packs that use 50% less plastic.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 21
Product End-of-Life Management
Cisco has developed a tightly controlled, closed-loop reverse supply chain, ensuring that environmental responsibility results in financial benefits for Cisco and our shareholders.
Cisco has developed a tightly controlled, closed-loop reverse supply chain, ensuring that environmental responsibility results in financial benefits for Cisco and our shareholders.
Less than two percent of Cisco’s returned electronicequipment goes to landfills.
Cisco’s Technology Migration Program offers participating customers a discount on new products in exchange for returning existing equipment. In 2008, Cisco saw a 63% improvement over 2007 in the number of products redployed.
In FY08 Cisco had Takeback and Recycle program requests in Europe totaling about 192,000 kg (more than 422,000 lb). 99.5 percent of this waste was diverted from landfills.
In two years, World Wide Reverse Logistics (WWRL) increased returned product re-use from virtually zero in FY 2005 to 22% of its inbound volume in FY 2007. This equates to 3.7 million lbs of material re-used instead of scrapped.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 22
Efficient Use of Power in our Buildings,Labs and Data Centers
Both emissions and costs can be reduced through improved management facilitated by networking. Cisco has developed and is piloting two software programs designed to achieve greater energy efficiency in our company’s operations.
Cisco’s Automated Management Power System (AMPS) powers down equipment when it is not in use.
Cisco’s EMAN is a web-based system that monitors and reports on equipment power status, sending prompts when equipment has been left on.
The use of these programs is projected to result in an annual energy savings of 5.8 million kilowatt hours representing more than $800,000 in cost savings and rebates.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 23
Reducing Water Use
Conserving water ensures availability and allows Cisco to save and reinvest these utility costs.
Low-flow auto-shutoff faucets in our Boxborough facility and waterless urinals in our San Jose headquarters are reducing water consumption by more than 11.8 million gallons per year.
We use web-based technology to automate and optimize water schedules.
At product fabrication sites, recycled water is being used for the cooling of PCB ovens, driving our water conservation efforts through to our supply chain.
Cisco uses reclaimed water for landscaping and similar applications. In California alone, we are saving more than 81 million gallons of water each year.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 24
Managing Operational Waste
Cisco strives to manage, reduce, or eliminate operational waste — which includes office, landscaping, and cafeteria wastes.
In San Jose, more than 75% of the total waste stream is now diverted from the landfill.
In our Brussels office, an employee education program and installation of new recycling bins boosted the recycling rate from 40 to 80 percent in 2007.
We estimate that the amount of energy saved through Cisco’s recycling efforts amounts to 35 million kilowatt hours annually.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 25
Cisco Green Power Purchases
Green Power Purchasing
In April 2009, the U.S. Environmental Protection Agency ranked Cisco the eighth largest Fortune 500 purchaser of renewable energy in the United States.
KWh Green Power
mTCO2e
Equivalent Per Capita Usage in U.S. (number of people)
Equivalent Number ofPassenger Cars
FY07 FY08 FY09(Projected)
112,000,000 342,000,000 484,000,000
68,500 221,000 310,000
12,500 40,500 57,000
2,900 9,400 13,100
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 26
Cisco’s EcoBoard
Cisco’sGreenVision
GreenerOperations
GreenerSolutions
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Our Customers’ Green Goals
Foster practices good for business AND the environment
Reduce Energy Consumptionand costs
Comply with government directives
Create competitive differentiation
Satisfy corporate and worker sustainability demands
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 28
Helping Customers Meet TheirGreen Goals
Innovative Business Processes
Extended Lifecycle Optimized Processes Simplified Architectures
Operational Efficiency
Energy Savings Power Management Tracking and Reporting Infrastructure Consolidation
Virtual Worker Remote Collaboration Resource Virtualization
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 29
A History of Green Innovationsfrom Cisco
Innovative Business Practices
Cisco TelePresence®
Cisco Virtual Office
Cisco Collaboration UC & TP Services
Power Monitoring & Allocation
Operational Efficiency
Unified Communications 6.0
Video-ReadyCampus
Data Center 3.0
Data Center Services
Intelligent Traffic Redirect
Trusted Flow Acceleration
Cisco® ISR 3845
Unified Communications 7.0
Energy Savings
EmpoweredBranch 3
Aggregated Services Router
Cisco Motion
Cisco EnergyWise
Adaptive Power Management
Catalyst® 296048-port PoE
Switch
2007
2008
2009
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 30
Innovations to Network Architecture
NetworkArchitectures
NetworkedEnergy and
EnvironmentalManagement
EnergyWise
Smart Grids
Planetary Skin
BuildingsBuildings
Cisco Connected Workspace
ConnectedReal Estate
EnergyWise
Data CentersData Centers
Virtualization
Consolidation
Intelligent Power Management
CollaborationCollaboration
Connected UrbanCommunications
Connected WebEx andMeetingPlace
Cisco Telepresence
Cisco Rich Media
CitiesCities
Smart Communities
Connected Urban Development
Smart Grids
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 31
Smart CommunitiesAn urban communications infrastructure that makes the flow of information, knowledge, people, and traffic more efficient, in turn dramatically enhancing how people experience life in and around cities.
Green Information and Communication Infrastructure
Connected andSustainable
Next-Generation Broadband Infrastructure
IT-Enabled City Infrastructure:Build Environment, Transportation, Energy, Water
Connected andSustainable
Connected andSustainable
Connected andSustainable
MobilityWork Energy Buildings
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 32
Cisco Smart Grid StrategyEnd-to-End Communications Fabric
Provide end-to-end, secure communications fabric to help utility companies optimize power supplyand demand
Architect end-to-end, network from generation to home
Standards-based and interoperable
Reliable, resilient, and secure
Seamless integration with grid commercial and residential control systems
Trusted and committed partner with world class products and services
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 33
30% Additional Reserve Capacityfrom Active Load Management
0
10
20
30
40
Today Potential New
Cap
acit
y 30
10 40
Utility Company
33
Smart Grid Benefits Quantified
39% Reduction in PowerGeneration GhG Emissions
0
20
40
60
80
100
Today Reduction New
% E
mis
sio
ns
100 39
61
Source: Cisco IBSG
End Customer
12.5% Potential Reduction in Bill fromSavings Passed on to the Customer
0
20
40
60
80
100
Current Savings New
Uti
lity
Bill
100 12.5
87.5
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 34
Cisco Smart Grid Solutions
Business Solutions
Transmission& DistributionAutomation
Optimize Asset Utilization and
Improve Efficiency /Reliability
Smart Grid Security
Threat DefenseCyber & Physical Security
BusinessEnergy Mgmt
Home Energy Mgmt
Optimize Energy Usage andReduce Costs and Carbon
Foot Print
PlanBuildBuild
RunRun
Cisco ServicesCisco Services
IncreaseTransparencyand Improve
Billing Service
Smart MeterCommunication
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 35
Cisco Connected Workplace combines collaborative and networking technologies with an open floor plan and an emphasis on mobility, thereby reconciling productive working patterns with environmental responsibility.
Connected Workplace at Cisco
Estimated Energy EfficiencyGains with Connected Workplace
Number of Employees
TraditionalOffice
300
Cisco ConnectedWorkspace
PercentChange
40033%
Increase
Connected Electrical Load(watts/square footage) 2.6 1.7
36%Reduction
Connected Electrical Load(watts/employee) 432.9 178.7
58%Reduction
Total Connected Electrical Load(watts) 127,169 71,476
44%Reduction
Total Cooling Loads (BTUs) 433.646 243,73344%
Reduction
Total Cooling Provision Tonnage 36 2044%
Reduction
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 36
Connected Real Estate (CRE)
Transformation Delivering space, technology and services differently
Convergence Converging information, communication and building technologies
FoundationBuilding the next generation building information network
DifferentiationStakeholder attraction and retention
Managed ServicesRevenue opportunities and Remote delivery
Streamlined ProcessesOperational efficiencies
Adaptable EnvironmentsFlexible space optimization
User MobilityProductivity, in the right place at right time
Cost ReductionSpace, technology, energy and operations
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 37
Cisco EnergyWise Technology
Innovative software added onto Cisco® Catalyst® switching portfolio
Available to customers for download now or with technology refresh
Enables reduction of GhG emissions—impacting other 98%
Drives significant cost savings
Monitors, reports, reducesenergy usage acrossentire infrastructure
Open technology
Collaborative Cross-Industry Effort
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 38
Cisco on Cisco Estimated Savingswith Cisco EnergyWise Phase I
Cisco IT
165,000 IP Phones
8,500 Wireless Access Points
EnergyWise Piloted Globally
Average device idle 6,000 hours / year
Economic Impact - Savings
$1.1M in Electricity (@ $.10/KWh) / year
Environmental Impact
7,900 tons GHG / year
Equal to Powering 1,095 homes
OFF
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 39
Energy Efficient Data Centers
Cisco’s service module architecture provides a more efficient solution as compared to conventional appliance-based models.
Cisco has dedicated R&D resources in its data center business unit focused on power-efficient solutions.
Cisco power supplies for its data center products are +90% efficient on AC supply when loaded at 60% or higher.
Cisco’s Energy Efficient Data Center (EEDC) can increase storage asset utilization up to 70% through virtualization—enabling consolidation and decreasing dependence on appliances that support server groups.
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 40
A significant % of all business travel can be replaced by virtual meeting solutions
Use real-estate more efficiently with more productive remoteand mobile workingand hot-desking
Unified Communications enables remote work with the same efficiency asin an office
AvoidedBusiness Travel
Avoided Commuting
Reduced Office Space Needs
Virtual Collaboration Through Unified Communications
Cisco supports environmental sustainability through smarter virtual collaboration
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 41
Virtual Collaboration Through Unified Communications
“We calculated that an effective virtual conferencing solution could reduce annual travel costs by more than $10 million.”
James Shipman, USPS
Virtual Training
Remote Workers
Will allow closure of several office buildings and save $130 million a year.Shared
Workspaces
“WebEx provided the collaboration tool we needed to bridge distances and effectively boost productivity.”
Chris Saleh,Open Work Services Group
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 42
Environmentally Conscious Product Design & Supply Chains
Design forEnvironmentDesign forEnvironment
DesignDesign
Energy Efficiency Eliminate/reduce hazardous materials Design for extended life and upgradability Design for recyclability Package dematerialization
Energy Efficiency Eliminate/reduce hazardous materials Design for extended life and upgradability Design for recyclability Package dematerialization
Supply ChainSupply Chain
ManufactureManufacture
Code of Conduct Regulatory compliance
Code of Conduct Regulatory compliance
ProductTake-BackProductTake-Back
End of LifeEnd of Life
Refurbish/ remarket Disassembly Recycling Responsible disposal
Refurbish/ remarket Disassembly Recycling Responsible disposal
Architectures/SolutionsArchitectures/Solutions
UseUse
Reduced travel Efficient buildings and work spaces Efficient data centers Efficient cities
Reduced travel Efficient buildings and work spaces Efficient data centers Efficient cities
ProductsProducts Product/system energy efficiency Networked energy management Extended life
Product/system energy efficiency Networked energy management Extended life
PackagingPackaging
DistributionDistribution
Reuse Reduce Recyclable
Reuse Reduce Recyclable
Logistics/TransportationLogistics/Transportation
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 43
Product Energy Efficiency
Average Use Optimization Virtualization Integrated Services
Average Use Optimization Virtualization Integrated Services
SystemSystem
Intelligent Power Management: Automated Power Down/Up Intelligent Energy and Business Data Management Systems
Intelligent Power Management: Automated Power Down/Up Intelligent Energy and Business Data Management Systems
SoftwareSoftware
Highly Efficient and Intelligent Power Supply Interactive Thermal Cooling Energy-Efficient Connectivity
Highly Efficient and Intelligent Power Supply Interactive Thermal Cooling Energy-Efficient Connectivity
HardwareHardware
Voltage Scaling Clock Gating Low-Power Silicon
Voltage Scaling Clock Gating Low-Power Silicon
ComponentArchitectureComponentArchitecture
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 44
Power Efficiency Improvements
Efficient Power Supplies
70
75
80
85
90
95
10 20 30 40 50 60 70 80 90 100Load (%)
Eff
icie
ncy
(%
)
Cisco® Catalyst® 6500Cisco® Catalyst® 6500
Hardware Improvements
Wa
tts
co
ns
um
ed
/ G
bp
s
Pe
rfo
rma
nc
e
0.00.51.01.52.02.53.03.54.0
Sup II+ Sup 6E
Cisco Catalyst 4500Cisco Catalyst 4500
Higher Density / Same Power Use16
020406080
100120140160
6502 6704 6708
Po
wer
(W)
per
po
rt Cisco Catalyst 6500Cisco Catalyst 6500
Pac
kets
/Wat
ts
200019981996 2002 2004 2006
2000300040005000600070008000
10000
Cisco 7200 RouterCisco 7200 Router
Performance/Power Gains
60% decline in power/port in 5 years
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 45
Product System and Software
Energy-Efficiency Achieved by Using Power-Downand Standby Modes
Energy-Efficiency Achieved by Using Power-Downand Standby Modes
Energy-EfficiencyMeasures inCisco Devices:
Spinning down hardware on devices when not in use
Powering down areas of a chip that are not in use
Minimizing the frequency of communications between devices
Po
we
rP
ow
er
Workday (active)Workday (active) Nighttime/Travel (inactive)Nighttime/Travel (inactive)
Active
Active
Standby Standby
Typical PoE power profile
Power savingopportunity
Optimized PoE power profile
Wa
tts
/Un
itW
att
s/U
nit
4040
3535
3030
2525
2020
1515
1010
55
Calendar YearCalendar Year20022002 20032003 20042004 20052005 20062006 20072007 20082008
Energy-Efficiency Gains for Set-Top Boxes
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 46
Cisco employees learn about Cisco’s environmental strategy via the internal “Cisco Green” website and use it to collaborate and discuss environmental issues and share potential solutions.
Cisco employees commit to change at least one thing in their daily workplace lives by making a pledge to the Think Green, Act Green pledge page, actively contributing toward achieving Cisco’s green goals.
Cisco employees participate in global events such as beach and park cleanups, tree planting, eScrap collection, Earth Day, and Bike to Work Day.
Cisco seeks to inspire employees to help make the workplace more energy- and resource-efficient, as well as to engender pride in Cisco’s environmental actions.
Nurturing a Green Culture
© 2008 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 47