C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

2

1

3

Why Cloud?

Addresses unpredictable application demand

Fuels top-line growth

Improves bottom-line economics

Sources: Cisco IBSG, CBA, SMO, Commercial Sales, CSG, 2011

Reduce Time to Market and Roll Out Capabilities for Less: Faster Provisioning

3 MonthsAverage From 90 days to

minutes (Savvis)

Reduce TCO by Up to 50%+

~$3,500/month

~$1,610/month

- 54%

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

2

3

1

Why Now?

Sources: Cisco IBSG, CBA, SMO, Commercial Sales, CSG, 2011

Flexibility and economics provide certainty in uncertain times - transition from CapEx to OpEx

New business and technology capabilities for emerging digital workforce

Increasing adoption of cloud services

0%

5%

10%

15%

20%

Professional

Services

Public Sector

Retail, Wholesale,

and Distribution

Healthcare Financial Services

Manufacturing

SaaS IaaS

At least 12% of enterprise workloads will run on clouds globally by 2013

Workload Shift by 2013 (by Vertical)

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

Global Data Center Traffic Growth

Data Center Traffic Quadruples from 2010 to 2015

33% CAGR 2010–2015

2010 2011 2012 2013 2014 2015

0.0

500,000,000,000.0

1,000,000,000,000.0

1,500,000,000,000.0

2,000,000,000,000.0

2,500,000,000,000.0

3,000,000,000,000.0

3,500,000,000,000.0

4,000,000,000,000.0

4,500,000,000,000.0

5,000,000,000,000.0

Zet

tab

ytes

/ Y

ear

1.1 ZB

1.5 ZB

2.1 ZB

2.9 ZB

3.7 ZB

4.8 ZB

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Global Data Center Traffic by Destination

Majority of Data Center Traffic Stays within the Data Center

33% CAGR 2010–2015

2010 2011 2012 2013 2014 2015

0.0

500,000,000,000.0

1,000,000,000,000.0

1,500,000,000,000.0

2,000,000,000,000.0

2,500,000,000,000.0

3,000,000,000,000.0

3,500,000,000,000.0

4,000,000,000,000.0

4,500,000,000,000.0

5,000,000,000,000.0

Data Center-to-User

Data Center-to-Data Center

Within Data Center

77%

5%18%

76%

7%

17%

Zet

tab

ytes

/ Y

ear

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Global Traditional DC vs. Cloud DC

Cloud DC Traffic Will Account for Over One-Third of Total DC Traffic by 2015

33% CAGR 2010–2015

2010 2011 2012 2013 2014 2015

0.0

500,000,000,000.0

1,000,000,000,000.0

1,500,000,000,000.0

2,000,000,000,000.0

2,500,000,000,000.0

3,000,000,000,000.0

3,500,000,000,000.0

4,000,000,000,000.0

4,500,000,000,000.0

5,000,000,000,000.0

Cloud Data Center

Traditional Data Center

Zet

tab

ytes

/ Y

ear

89%

11%

66%

34%

71%

29%

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Cloud DC vs. Traditional DC: Workload Shift

By 2014, >50% of All Workloads Will Be Processed in the Cloud

22% CAGR 2010-15

2010 2011 2012 2013 2014 2015

0

20

40

60

80

100

120

140

160

180

Cloud Datacenter

Traditional Datacenter

79%

21%

49%

51%

43%

57%

Inst

alle

d W

ork

load

s in

Mill

ion

s

Source: Independent Analyst Shipment Data, Cisco Analysis

C97-706069-00 © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

More Resources

• For more information on Cisco’s cloud platform, visit: www.cisco.com/go/cloud

• Riding the Cloud To Improve Your Top- and Bottom-Line Economics Download the Point-of-View Paper: www.cisco.com/web/about/ac79/docs/Cloud-Computing-Economics_IBSG.pdf

• Economic Benefits of Cisco CloudVerseDownload the White Paper: http://www.acgresearch.net/knowledge-insights/reports-whitepapers/economic-benefits-of-cisco-cloudverse.aspx

• Media Alert : http://newsroom.cisco.com/press-release-content?type=webcontent&articleId=818098

• On Twitter, follow @CiscoDC and the #CiscoCloud hash tag