IBS, HYDERABAD

[CISCO]

Acknowledgement

We would like to express a word of thanks to those, whose sincere advice and

information, made the project very educative and informative.

Every endeavor requires an effort or

contribution from many people and this is no different. We wish to express our

sincere thanks to Prof. C.V.A. PRASAD RAO (Faculty - IBS, Hyderabad) for

his unstinting guidance and support throughout the project. He has been a great

source of motivation to all of us.

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TABLE OF CONTENTS

1.0 INTRODUCTION…………………………………… 4

1.1 MARKET STATISTICS…………………………….. 4

1.2 MARKETING MIX- THE FOUR P'S……………… 6

2.0 PRODUCT……………………………………………. 8

3.0 PRICE………………………………………………….15

4.0 PLACE PROMOTION……………………………….18

5.0 INDUSTRY BUYING BEHAVIOR………………….20

6.0 COMPETITIVE ADVANTAGE…………………......27

7.0 PORTER’S FIVE FORCES…………………………..27

REFERENCES………………………………………...31

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1.0 INTRODUCTION-

Telecommunications industry deals with the activities and services of electronic systems for transmitting messages through cables, telephone, radio or television. World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom

connections. Over the past few years information and communications technology Has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry.The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-WAN inter networking, optical networking, voice over Internet protocol, wireless data service etc.

1.1 Market Statistics:

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1.2 Marketing mix- The Four P's

Marketing decisions generally fall into the following four controllable categories:

1. Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration.

2. Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

3. Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the preciseness of customers.

4. Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations

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2.0 Product-

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Cisco:

Cisco product line is divided between three categories:

1. Enterprise and service provider(networking solutions)

2. Small business3. Home

Network SystemsProducts

Routers Switches Wireless Security Physical Security and Building Systems Optical Networking Network Management Cisco IOS and NX-OS Software Interfaces and Modules

Data CenterProducts

Unified Computing Application Networking Services Storage Networking Data Center Switches Blade Switches

Small Business

Routers & Switches Security & Surveillance Voice & Conferencing Wireless Network Storage All Small Business Products All Small Business Services

Home

Home Networking (Valet and Linksys) Flip Video More for Home

Siemens:

It offers the business a range of products on the basis of size and the scope of the organization.

1. Communication Systems for Large Enterprises

2. Communication Systems for Small & Medium Businesses

3. Network Infrastructure and Security

Communication System For Larger Enterprise

OpenScape UC Server OpenScape Voice Hipath 4000

Communication Sytem For Small And Medium Enterprise

Openscape Office Hi Path open office Medium edition

Network Infrastructure And Security

Chassis Switches/Routers Stackable Switches/Routers Standalone Switches/Routers HiPath Wireless Visibility & Control Advanced Security Applications

Fixed and Mobile Networks for Carriers

Carrier Services Managed Services Mobile Broadband Networks Solutions Subscriber Data Management

IT Security

Network Security Services Security Solutions

Cisco:

High-End Routers

The Cisco 7000 family of high-end internetworking platforms delivers the exceptional performance and availability needed for today's mission-critical networks. Built using leading-edge technology from Cisco Systems, the Cisco 7000 family offers unmatched performance and a clear path to next-generation technologies, including Asynchronous Transfer Mode (ATM).

Cisco WAN Solutions

Cisco Systems is the leading supplier of reliable, high-performance and high-efficiency communication backbone solutions and StrataCom is the pioneer of cell switching technology and a leading supplier of high-performance wide-area network (WAN) switching systems in both the Frame Relay and ATM markets. Cisco and StrataCom have joined forces to provide ATM and Frame Relay high-speed wide-area network (WAN) switching equipment that integrates and transports a wide variety of information to provide end-to-end multimedia solutions across public, private, or hybrid networks.

Cisco Switching Solutions

Cisco Systems provides the strategy, products and technologies to meet the demand for more bandwidth and throughput in workgroup networks. With Cisco's Switching Solutions, users can migrate from today's world of shared 10BaseT to the more powerful options that are either available now or coming soon -- options such as switched local-area networks (LANs); high-speed LANs such as Copper Distributed Data Interface (CDDI), or Fiber Distributed Data Interface (FDDI); the various types of Fast Ethernet, Asynchronous Transfer Mode (ATM), and Gigabit Ethernet.

Cisco IP Telephony

The integration of telephony services into the data network has the potential to drive major changes in institutions by delivering information more pervasively and completely than today's multinetwork approach. Cisco's IP telephony products and Voice over IP (VoIP) solutions will leverage your exisiting productivity of individuals in enterprises worldwide. By marrying telephony and data infrastructures, a customer's network is easier to manage, expand, and over time, is less costly.

Open Programmable Switches

An open programmable switching platform such as the VCO/4K provides an open call model and standard API that supports the cost- effective and rapid development of core transport (e.g. Class 4) and enhanced (e.g. calling card) services. This is in contrast to proprietary central office switch solutions in which service providers source all the hardware, software, and applications from a single vendor. These "big iron" switches do not provide the rapid deployment of enhanced voice services demanded by today's competitive market.

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Cisco Small/Medium Business Solutions

Cisco solutions tailored for small- to medium-sized businesses to increase LAN performance and seamlessly integrate office LANs with remote sites and the Internet. These products are available through your local reseller.

Cisco Access Solutions

Cisco's Access Solutions give you seamless asynchronous and ISDN remote access for enterprise telecommuting, Internet access, branch-site connectivity, and education. Cisco's end-to-end remote access products protect your investments with a complete solution, delivered as a wide range of interoperable hardware and software options. That includes integrated, easy-to-use remote access software, tamper-proof security, and reliable, high-performance access servers at the enterprise end, all backed by Cisco's powerful Internetwork Operating System (IOS) and familiar central-site management software.

Cisco ATM Solutions

Cisco Systems offers a wide variety of ATM Solutions for your internetworking environment: The Cisco LightStream 2020 is a multiservice ATM switch for campus and wide-area applications; the LightStream 1010 is Cisco Systems' next-generation ATM switch for workgroup and campus backbone deployment. Cisco also offers ATM SBus and PCI Adapters, and ATM modules for core routers, access routers, and LAN switches.

Cisco InterWorks Solutions for SNA/IBM

Cisco provides a broad range of products and solutions for the IBM marketplace that maximize availability, scalability, performance, flexibility, and management. Much of this functionality is available through Cisco IOS software, which provides IBM internetworks with a clear migration path to the future while protecting investments in existing equipment and applications. Our new CiscoBlue strategy provides a roadmap for IBM Internetworking customers who want to consolidate duplicate networks, effectively manage SNA and non-SNA resources, and integrate IBM networks into higher-speed switched internetworks.

Web Scaling Products and Technologies

Cisco's Internet Solutions are led by the CiscoAdvantage product suite, which improves network managers' ability to cope with several challenges posed by the growing popularity of the Internet, including security, high volumes of network traffic and the shortage of network addresses. CiscoAdvantage products are designed for use both by Internet service providers and by companies who manage their own networks. They are the first products of their kind that harness the intelligent capabilities of internetworks to offer smarter services to network users who want to access the World Wide Web.

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Security Products and Technologies

Successfully using Internet technologies requires an increased need to protect valuable data and network resources from corruption and intrusion.

Cisco IOS Software Solutions

Cisco IOS(TM) software solutions, which address the end-to-end network connectivity needs of small, medium, and enterprise customers, are proliferated through Cisco's many partner and OEM relationships around the world. Cisco IOS technologies provide network scalability, modularity, portability, and embedded functionality, including multimedia, security, network management, dialup, and Internet applications.

Network Management

Cisco provides applications that centralize management, automate routine tasks, and can be integrated into customers' existing network management environments. These include applications for enterprise and switched internetwork management, remote monitoring, device management, ATM management, simulation-based planning and problem-solving, performance analysis, and more.

Product overview of Siemens

OpenScape UC Server

Our OpenScape UC Server removes the artificial legacy barriers between traditionally separate voice, video and IP communications to deliver a comprehensive suite of unified communications applications. With OpenScape Unified Communications Server, your business can streamline operations and access a range of communications applications over your existing IT infrastructure.

OpenScape Voice

OpenScape Voice allows you to deploy voice communications in the data center just like any other business critical application. Designed for IP communications, it offers carrier class resiliency and is scalable from just 300 users to a global enterprise with 100,000 users.

HiPath 4000

Manage IP communications in real time

Openscape Office

integrated with Microsoft Outlook, the industry’s first software-based unified communications solution built specifically for small and medium businesses

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Hipath 3000:

small business telephone system supporting from 20 to 500 users

Chasis Switches and Routers

Enterasys modular chassis-based switches provide businesses with maximum flexibility and scalability, as system components can be added or changed over time to adapt to evolving needs. Enterasys S-Series and N-Series flow-based switches offer the industry’s most granular visibility and control of individual users and voice/video/data applications. Capable of being deployed as premium edge access devices, distribution layer aggregation switches, enterprise-class core routers, or data center server farm solutions, the S-Series and N-Series deliver unsurpassed reliability, scalability, and fault tolerance.

Stackable Switches And Routers

Enterasys provides a variety of stackable switch platforms to meet a range of business needs, from entry-level switching capabilities found in the A-Series to advanced routing and IPv6 support in the C-Series to support demanding applications such as voice and video. With the ability to stack up to 8 switches in a rack but manage the stack as a single switch, Enterasys stackable switches provide enterprise-grade capacity and functionality as well as investment flexibility. Additionally, long term investment protection is ensured with a comprehensive limited lifetime warranty.

Standalone Switches And Routers

The Enterasys D-Series is a high performance small form factor switch with a quiet, temperature tolerant design that is ideal for conference rooms, classrooms, or warm locations with limited ventilation.  The G-Series switch combines the size and cost-effectiveness of a stackable switch with the modularity of a chassis-based switch, and is ideal for dynamic switching/routing environments requiring high density Gigabit Ethernet ports.  The Enterasys I-Series is custom designed to support the demanding requirements of an industrial setting, such as a factory floor or oil refinery, with tolerance for extreme temperatures and the ability to function in harsh working environments.

Hipath Wireless Solutions’

HiPath Wireless solutions include a wide variety of access points, controllers, management capabilities, security, and planning software, as well as a unique open platform for application integration.  Recognized for offering a complete 802.11n solution without loss of coverage or functionality using existing 802.3af PoE (Power over Ethernet) infrastructures, HiPath Wireless is the most energy efficient and cost effective WLAN solution on the market today. 

Advanced Security Application

The Enterasys Intrusion Prevention System (IPS) and Enterasys Security Information and Event Management (SIEM) solutions deliver a proactive and responsive security posture for any network from any vendor. Enterasys Network Access Control (NAC) provides network visibility and granular control ensuring that only the right users are accessing the right information from the right place at the right time. Whether or not you have invested in Enterasys switching, routing, and wireless infrastructure, Enterasys security solutions provide comprehensive protection, address regulatory compliance, enable greater IT efficiency and reduce costs

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Comparison in the products offered by CISCO and Siemens-

Product: IP-PBX:Product Description: An IP (Internet Protocol) PBX (Private branch exchange) is a business telephone system designed to deliver voice or video over a data network and interoperate with the normal Public Switched Telephone Network (PSTN). Because a major part of IP PBX functionality is provided in software, it is relatively inexpensive and easy to add additional functionality, such as conferencing, XML-RPC control of live calls, Interactive voice response (IVR), TTS/ASR (text to speech/automatic speech recognition), Public switched telephone network (PSTN) interconnection ability supporting both analogue and digital circuits, Voice over IP protocols including SIP, Inter-Asterisk eXchange, H.323, Jingle (extension of XMPP protocol introduced by Google Talk) and others.

Product features Cisco SiemensName Cisco IP Communication

SystemsHiPath 4000

Version Version 4.1(2) Version 2.0Capacity 30,000 IP hard or softphones

with 5+ server cluster12,000 a mix of IP hard and softphones

Call manager/Call controller Running on Win 2000, Advanced Server on custom HP/Compaq servers

Running on UNIX or the process card chosen by the vendor can be modified

Additions Mant swithches and routers can be added to it for PSTN trunking, IP station control

Gateways and mutislot chasis are used for PSTN trunking and IP station control

Protocols used H.323 which provides connection of 100 clusters but most features do not extend across clusters.

Propriety CorNet Protocol which provides 100% transparency across distributed system.

Gateways and gatekeeper Intergral gateway for H.323 but a proxy server is required for SIP phone support

H.323 gateway and gatekeeper are integral

Per-cent of call completion 99.99+ 99.7+Call load includes voice prompts

No No

Call load include DTMF tones No NoOther validated high availability features

Remote back up call controller

Dual NICS in call controller

Redundant controller in gateways

Remote back up call controller

IP line card failover Redundant chassis power

supply

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Siemens advanced features are much more down to earth, telephony oriented. Its wideband G.722 based which is complemented for its high quality voice ; the modularity on its add on sidecars expansion units for adding line appearances , soft keys and buttons to its IP phones. The only phone model that supports TDM operations as a digital phone with a capacity to switch over to a full IP phone.

Where as Cisco products are video conferencing offerings, which interface through Cisco IP hard phones and works just like setting up an audio phone call , even for multiparty video conferencing. With the help of Cisco’s mobility application wherein calls can ring simultaneously at office or home or the cellular and the user can readily transfer and pick up the call between these sites.

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3.0 PRICING:In the current competitive world pricing holds a significant position in contributing

towards competitive advantage of a company. Particularly in the telecommunication products

business, the pricing models to be adopted are given greater thoughts.

In this study, the two companies that are considered viz- SIEMENS and CISCO follow

completely different pricing models (Usage-based pricing model and licensing pricing model

respectively) which aids in achieving their mission and also gain competitive advantage over

other competitors.

LICENSING PRICING MODEL OF CISCO:With the introduction of the Cisco Unified Communications family of products, the

device licensing approach for Cisco Unified Communications Manager (formerly called Cisco

Unified CallManager) Version 5.0 and later versions was adjusted to remain current with the

trends and demands of the marketplace. Business communications systems have evolved to meet

a broad set of service needs such as voice, video, and Web collaboration. Similarly, the call

processing function that is the mainstay within that complex communications environment has

been transformed over the years. Most of the intelligence for call processing now lies in the

software component of a call-control solution. Research and development, entrepreneurial

endeavor, and innovation are also shifting to the software side. With the creative energies

expended on the software, the approach to pricing has logically evolved toward device licensing.

Device licensing is not a new concept for Cisco, and with the release of Cisco Unified

Communications Manager 5.0, the existing licensing program has been updated to keep pace

with the changing times. Device licenses for Cisco Unified Communications Manager remain

separate from the price of the phone, but the price of the device license component has increased

starting with Cisco Unified Communications Manager Version 5.0. The price increase for

licenses has been offset by an equivalent decrease in the price for endpoints (Cisco Unified IP

Phones). As a result, the total amount that a customer pays for a combination of device license

and corresponding IP phone remains the same as in the previous pricing model for Cisco Unified

Communications Manager.

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Industry fit:Private-branch-exchange (PBX) vendors have traditionally set high margins on their

phones, even though the devices were little more than dumb terminals connected to the PBX. In

the new world of unified communications, phones and a multitude of other devices act as clients

that, when combined with sound call processing, form an integrated solution to meet the

evolving needs of an organization. With features such as Session Initiation Protocol (SIP),

companies are free to use an array of intelligent devices on the network to meet the varied needs

of their workforces. The value of a communications network now lies in productivity features

such as presence, Web collaboration, video, and location provided by intelligent call processing.

Industry vendors will come to rely on superior call processing to differentiate their solutions

from those of competitors, while allowing integration with third-party devices. Industry leaders

will be able to continue to invest in innovation only if the pricing model of network components

accurately represents the relative value of those components within a customer environment. As

productivity features continue to be enhanced in call-processing applications, the industry will

follow with licensing fees commensurate with those features and innovations.

A recent Sage Research study demonstrated that increasing numbers of knowledge

workers own multiple communications devices—an average of as many as 6.4 per user—and

these devices may include a desk phone, a dual-mode cell phone, and a softphone. Cisco

continues to update its licensing policies to respond to market needs. Just as the current licensing

policy reflects an intention to represent the innovation and value of call processing in the

customer environment, Cisco pricing policies will continue to evolve to meet the growing need

for device independence and user flexibility.

Cisco charges for the device and for the associated value that Cisco call control

represents. Device licenses for Cisco phones and for phones from third-party vendors are

perpetual and independent. Cisco devices support a robust feature set, and their support of both

SIP and Skinny Client Control Protocol (SCCP) makes them compelling tools in an enterprise’s

productivity efforts (Figure 1). Because of their enhanced feature set, over time users can expect

Cisco devices to provide better return on investment (ROI) than third-party SIP devices with

limited feature sets. Third-party devices with limited feature sets may nevertheless offer suitable

options for certain users within a network to complement high-end devices for other users.

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CLOUD COMPUTING AND USAGE-BASED PRICING MODEL OF SIEMENS:As IT budgets come under increasing cost pressure, the interest in on-demand scalability /

flexibility, usage-based pricing models and no / low capital investment is gaining increasing

momentum. Whilst from a commercial view point the “as a Service” approach is not that new, its

alignment to the emerging virtualization technologies is creating a whole new delivery paradigm

that has been loosely termed “Cloud Computing”.

But SEIMENS’ Usage-based pricing model has its own ill effects that can affect the

profitability of the company. Usage-based pricing will inevitably discourage use.

Usage-based pricing could harm very important research areas with smaller research

communities - for example, research on endangered species, rare diseases, or essential but

esoteric basic research which is a part of the clientele base of SIEMENS.

Another reason to think carefully about usage-based pricing: of course, we want to pay

less for what we use less. However, do we want to pay more for what we use more? This is a

very likely consequence of usage-based pricing.

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4.0 PLACE

Location is the process of determining the geographical site of a firms operation .Organizations

weigh a number of factors while assessing the desirability of a particular site which are :

Proximity to customers

Proximity to suppliers

Labor costs

Transportation costs

Place refers to the means by which your customers acquire your product and includes:

Channel

Location

Transport

Coverage

Assortment

Inventory

Channels

Channels are set of interdependent organizations involved in the process of making a product

or a service available .As part of marketing strategy companies can select

Direct channels

Indirect channels

SEIMENS INDIA uses only indirect channels for its sales.

Manufacturer Company warehouse Distributor

Wholesaler Retailer Customer.

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The list of sales offices in India for Siemens is:

Ahmedabad

Siemens Ltd. Ahmedabad 3rd Floor, Prerna Arbour, Off C G Road, Girish Cold Drink Cross Road,

Navarangpura, Ahmedabad 380009.

Bengaluru

Siemens Ltd. Bangalore 3rd Floor, Jyoti Mahal, No. 49, St. Marks Road, Bangalore 560 001. +91

80 22042000

Siemens Ltd.(Previously SITS) Bangalore Devanhalli Road, Off Old Madras Road, Virgonagar,

Bangalore 560 049.

Chandigarh

Siemens Ltd. Chandigarh SCO 189/191, Sector – 17C, Sector 34A, Guru Nanak Complex,

Chandigarh 160 042

Gurgaon

Siemens Ltd. Gurgaon Software Development & Engineering Centre, Plot 6A, Sector 18,

Maruti Industrial Area, HUDA, Gurgaon

Hyderabad

Siemens Ltd. Hyderabad 5-9-19, 4th & 5th Floor, Laxmi Narasinh Estate, Hyderabad 500 004.

CISCO INDIA has direct as well as indirect channels. Some of its sales offices are in:

BANGALORE

2nd floor Brigade South Parade 10, M.G. Road Bangalore - 560 001 Karnataka India

CHENNAI

Unit No 511, 5th floor Raheja Tower 177, Annai Salai (Mount Road) Chennai Tamil Nadu India

KOLKATA

Apeejay Business Centre 8th Floor, Block A Apeejay House 15, Park Street Kolkata - 700016 West Bengal

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5.0 Cisco Promotions/Programs

Collaboration Promotions

Accelerate to Collaborate (A2C) Promotional Offers

A2C is designed to migrate customer from competitive legacy solutions to Cisco Unified Communications (UC) and Catalyst Switching solutions. It includes attractive customer trade-in credits, compelling services offers, flexible financing offers, sales enablement tools and incentives, and robust marketing demand generation.

UC Migration Momentum

The Cisco Unified Communications Migration Momentum promotion offers significant rebates and customer incentives to qualifying UC Specialized partners that migrate Avaya, Alcatel, Ericsson/Aastra, Mitel, NEC, LG, Nortel and Siemens customer to Cisco UC solutions. Eligible trade-in categories include PBXs, key systems and phones. The UC Migration Momentum promotion can also be combined with Trade-in Accelerator Program (TAP) rebates.

Migrate Now

The Voice Technology Group is pleased to announce a new promotion to help migrate existing customer to Cisco Unified Workspace Licensing (CUWL). This offer is targeted at existing UC customer who want to accelerate their decision-making time, enhance productivity and increase mobility and collaboration -- all at a significant discount (50% off list price)

3 and 3 Upgrade Offer

The '3 and 3 Upgrade' offer is designed to motivate the UC customer installed base to migrate from earlier releases to Cisco Unified Communications Manager 7.1(5) or UC 8.0. With the '3 and 3 Upgrade' bundled offer, customer can purchase a la carte Cisco Unified Communications Manager 7.1(5) and Unified Communications 8.0 product upgrades for $3 per user, per application* when combined with a three-year minimum** Cisco Unified Communications Software Subscription at standard price.

Cisco Unified Contact Center Express -- Bundled Free with Cisco Unified Communications Manager for New Customers

This promotion bundles new orders of Cisco Unified Communications Manager, Cisco Unified Communications Manager Business Edition and Cisco Unified Communications Manager

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Express with up to five seats of Cisco Unified Contact Center Express Enhanced system at no additional charge.

SMB Promotions

Cisco Small Business Fast Track Accelerator Promotion

It can help customer sell even more by offering promotional pricing on select Cisco solutions for small business. Plus, with Cisco, customer have a single source for the industry's widest range of reliable, compatible, and predictable networking products and services.

Cisco "Switch Up, Cash In"

Partners now have even more reason to encourage their customer to buy Cisco Small Business networking products. Customers can now receive $100 cash back when they trade in their existing switch and purchase a Cisco small business switch. Cisco Small Business switches enable partners to deliver their customer a better business network. These affordable switches were designed for small businesses and offer reliable and high performance connectivity that enable a more efficient business.

SMB Fast Track Discount

It provides Cisco partners with pricing advantage on industry-leading networking products for SMB applications from switching, routing, wireless, security and unified communications technologies. Registered partners can participate.

Cisco SMB Promotions Guide

There are numerous programs and promotions to help customer gain business and reap rewards for your sales of Cisco Small Business products.

Borderless Network Promotions

The qualifying public and private K-12 and higher-education institutions in the U.S. can experience the power of mobility from Cisco at a fraction of the cost.

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Virtualization Promotions

Data Center Advantage Program

Earn more on Cisco Data Center solutions with Cisco DC Advantage, an incentive program to increase your profitability when customers sell more Cisco Data Center products.

US Channel Opportunity Incentive Program

The Opportunity Incentive Program (OIP) rewards channel partners who actively identify, develop and win new business opportunities in targeted market segments. This program incorporates deal registration that is designed to protect the partner's presales investment and enable them to focus on value delivery to win the opportunity. Cisco Systems has simplified eligibility requirements for existing and new Cisco OIP offers. These offers may not be used in combination with any other promotions or programs from Cisco Systems with the exception that VIP rebates may apply if eligible. Registration and approval through OIP is required.

Services Promotions Accelerate to Collaborate Program

Three years worth of Cisco Technical Services for the price of two years and free Migration Discovery Sessions to help customer’s migration.

Hardware

Educational Institutions Can Save Money on Cisco 802.11n Wireless and Cisco Catalyst Switchesqualifying educational institutions can now experience the power of mobility and intelligent switching solutions from Cisco at a fraction of the cost.

Cisco Catalyst Switches Offers

Combine the Cisco 802.11n wireless promotions with Cisco Catalyst switches for a complete wired and wireless solution. Cisco's market-leading switches offer high availability, integrated security, strong support for converged applications, and significant long-term investment protection.

Attractive discounts and price reductions are available on the following Cisco Catalyst switches:

Cisco Catalyst 2975 Series Switches Cisco Catalyst 3560G and 3750G Series Switches Cisco Catalyst 4500 E-Series Switches

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SMB Fast Track Discount

Provides Cisco partners with pricing advantage on industry-leading networking products for SMB applications from switching, routing, wireless, security and unified communications technologies. Registered partners can participate.

A customer can receive a 39% and 44% discount on eligible products:

Switching: 2940, 2960, CE500 and CE520 Routing: 800, 1800 and 2800 series Security: ASA5505 and ASA5510 Wireless: WLAN Controller 526/2106/4400 Access point: 521/1100/1200/1300 Unified communications: UC500, Unified IP Phones 7900, Monitor Director and Monitor

Manager

Technology Migration Program

Cisco registered partners can utilize the Technology Migration Program (TMP) and Competitive Equipment Exchange to enable customer to trade in their existing Cisco and competitive networking products in exchange for trade-in credits towards the purchase of new Cisco products.

Certified/Specialized NFR Program

The Certified/Specialized NFR Program rewards resellers that have Cisco Certifications and Specializations with generous discounts on products used for their labs, demos and sales office infrastructure. This program also applies to Cisco Technology Developer Partners, AVVID Development Partners, Network Admission Control (NAC) Partners, Service Provider Solutions Ecosystem Partners, STI and ATP Partners.

An approximate 70% discount is applicable to all Cisco products with the following limits:

Gold: $400K/year at list price Silver: $200K/year at list price Premier: $100K/year at list price Select: $100K/year at list price Specialized (no certification) Cisco Technology Developer Partners, AVVID or NAC

Partner Program, SP Eco, STI and ATP Program: $75K/year at list price

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Registered Partner NFR Program

The Registered Partner NFR Program rewards Cisco Registered Partners with an approximate 50% discount on Cisco products (hardware and software) used for their labs, demos and sales office infrastructure. There is a $75K list price per year limit on these products, measured on a rolling twelve-month basis. For more information, contact your Cisco CAM.

Hosted IP Communications

Hosted IP Communications is a program that gives SMB-focused Cisco resellers the tools they need to be successful implementing a hosted voice solution in the SMB space. This program allows for product discounts when Cisco IP Phones are purchased in conjunction with a bundle consisting of a Cisco Router and a Cisco Switch. Additional products may qualify for the extended discount. (See product eligibility for a list of all approved products). Additionally, this program provides product access to Cisco IP Phones for qualified resellers (see partner eligibility). These discounts and product access to Cisco IP Phones are only available when purchased with approved services from qualified Cisco Powered Network (CPN) hosted voice service providers. For more information, contact your Cisco CAM.

U.S. Channel Opportunity Incentive Program

The Opportunity Incentive Program (OIP) rewards channel partners who actively identify, develop and win new business opportunities in targeted market segments. This program incorporates deal registration that is designed to protect the partner's presales investment and enable them to focus on value delivery to win the opportunity. Cisco Systems has simplified eligibility requirements for existing and new Cisco OIP offers. These offers may not be used in combination with any other promotions or programs from Cisco Systems with the exception that VIP rebates may apply if eligible. Registration and approval through OIP is required.

Generate incremental Cisco business Boost channel partner profitability Support the channel partner value model Help increase share in growth markets

Program benefits include:

Provides a financial advantage for partners who bring in new business opportunities

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Improves partner profitability Protects the partner's presales investments and value delivered to customer Facilitates value engagement by identifying the partner who is first to develop the

opportunity, ensuring early engagement between the partner and Cisco

Partner Rewards Program

Earn points for qualified sales of Cisco products and redeem them for a broad array of rewards -- everything from electronics, sports gear, and home and garden gadgets to dream vacations and sports packages. You can also exchange points for dollars that can be added to a prepaid debit card. The choice is yours.

Companies are now able to earn points as well Claims process is fast, easy and entirely web-based File claims in an easy, one-step process using just your distributor invoice number Begin submitting claims and rewarding yourself now

Services

Cisco Services Accelerate Program

This program is a training and incentive program for eligible Cisco channel partners. It's designed to help customer and your teams sell Cisco services more effectively and grow your business.

Offers easy-to-use, self-paced online training at no cost Take quizzes for points toward a chance of winning a gift card Win gift cards or earn additional points by taking Accelerate Program bonus challenges

Cisco Certified Refurbished Equipment

Cisco Certified Refurbished Equipment is a price competitive and trusted alternative when buying new Cisco equipment is not an options. This is ideal for customer faced with tight or limited capital spending budgets.

Pay for Performance Service Incentive Program

The Pay for Performance Service Incentive Program offers qualifying Cisco 2-Tier Partners cash rebates for meeting service contract attach and renewal rate thresholds. The program helps customer improve profitability, retain and satisfy customer, and manage and grow your Cisco services business. You can access metrics on attach rates and renewal rates by using

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Performance Metrics Central, an online dashboard that gives customer a centralized view of your service metrics.

Services NFR Program

Rewards resellers that have purchased products used for their labs, demos and sales office infrastructure with a generous discount on the corresponding services. Get a 70% discount on all Cisco services purchased for product purchased under the NFR program. A corresponding NFR product deviation approval must be provided. All Cisco Smartnet products are eligible.

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6.0 INDUSTRY BUYING BEHAVIOR-

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7.0 COMPETITIVE ADVANTAGE-

Suppliers benefit by being better able to plan their own manufacturing schedules. Suppliers also are able to direct ship to customers, reducing travel of their wares, and hence reducing the chance for damage or loss. Suppliers also have more contact with their own customers, which can give the organization more defined and relevant input.

Buyers benefit by increased customer relations. They can track their orders online, get quicker answers to problems, check availability of stock, and get value-added merchandise.

Porter's Five Forces

The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.

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Porter’s Five Forces are supplier power, threat of substitutes, buyer power, the degree of rivalry amongst competitors, and barriers to entry.

By creating the Manufacturing Connection Online, Cisco has been able to create a successful link with all of its suppliers, controlling differing inputs, ordering volumes, and supplier concentrations. With Cisco Connection Online, Cisco has successfully created a supplier gateway. The benefits include ease-of-use, shorter delivery times, and immediate access to order status. By improving their delivery system whilst reducing the price to the consumer and shortening delivery time, Cisco suppliers have raised the barriers to entry, ensuring brand identity, access to distribution, and providing absolute cost advantages. Similarly, the threat of substitution is reduced, as customers are now disinclined to substitute, particularly in face of the increased customer service. Finally, being a leader in the industry and the value-added CRM services will reduce the influence of rivals.

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REFERENCES-

WSIS Geneva Plan of Action, 2003, at:

http://www.itu.int/wsis/docs/geneva/official/poa.html#c8.

WSIS Geneva Plan of Action, 2003, at:

http://www.itu.int/wsis/docs/geneva/official/poa.html#c3.

http://www.businessweek.com/technology/content/mar2007/tc20070307_534338.htm.

http://www.hulu.com.

http://news.bbc.co.uk/2/hi/business/6411017.stm.

http://www.comscore.com/Press_Events/Press_Releases/

2009/10/36_Million_German_Internet_Users

http://online.wsj.com/article/SB123111603391052641.html.

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