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The Future of Business in a Digital India

President, India & SAARCNovember 24, 2014

DINESH MALKANI

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Thank you all for a wonderful partnership

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QUARTERLY MARKET SHARE (Q2CY14) 4Q ROLLING MARKET SHARE (Q2CY14)

TechnologyMarket

Size (Q2CY14)

Market Growth

(Y/Y)

Market Share

Q/QPercentage

points

Y/YPercentage

points

Market Size

(Q3CY13- Q2CY14)

Market Growth

(Y/Y)

Market Share

Q/QPercentage

points

Y/YPercentage

points

Key Competitors Cisco Share

IndicatorComp1 Share

Y/Y Percentage

PointsComp2 Share

Y/Y Percentage

Points

L2-L3 Switching $116M 30% 71% 4.0 1.2 $397M 6% 71% 0.3 0.2 HP 7% 0.5 Juniper 6% 0.2

ENT Routing $24M 22% 75% 0.7 0.5 $99M 21% 72% 0.0 3.4 HP 13% 5.2 Dax 5% 0.6

WLAN $16M 5% 52% 10.7 11.7 $60M 7% 47% 3.0 2.8 Aruba 12% 1.7 Ruckus 12% 5.3

Network Security $56M 4% 37% 6.6 1.3 $227M 2% 33% 0.3 2.7 CheckPoint 24% 0.6 Fortinet 10% 1.3

x86 Blade Server $62M 36% 17% 2.5 5.3 $190M 6% 15% 1.5 3.9 HP 47% 2.7 IBM 22% 6.5

IP Telephony $28M 14% 57% 5.3 4.1 $111M 19% 51% 0.7 0.4 Avaya 24% 0.5 ALU 7% 0.6

Video/TP1 $29M 14% 54% 3.3 3.2 $57M 3% 52% 1.4 3.7 Polycom 19% 8.2 Vidyo 7% 0.3

SP Routing $42M 54% 52% 12.7 5.2 $151M 57% 57% 1.6 10.4 Juniper 23% 4.2 Huawei 9% 1.4

CISCO MARKET SHARE

Based on End-user Revenue (US$M); 1Based on half-yearly tracking & latest data (1HCY14)

Market Share Scoreboard: IndiaOn a Y/Y basis we faired poorly on Collab, Routing & Security, however the trend in last 2 quarters is positive and we have been gaining share in most areas

Note: L2-L3 Switching includes modular & fixed managed switches; SP Routing includes routers deployed in an SP environment; ENT Routing includes routers deployed in Enterprises, excluding Consumer & SP; WLAN excludes PC Card, Gateway/Router, USBB Dongles; Video/TP includes Enterprise Videoconferencing; IP Telephony includes IP PBX

Source: IDC, F&S; APJ SPE Team Analysis Cisco Share Indicator (4Q Rolling): Y/Y and Q/Q share gain OR Y/Y share gain & Q/Q within holding range (-0.2 to +0.2pts); share loss Y/Y; share loss Q/Q

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54%

#1 TelePresence

25%

#3 Contact Center

37%

#1 Security

How We Disrupt Through Innovation…India Market Share & Architectures

#1 ENTRouting

75%

#1 WirelessLAN

52%

#1 ENT Switching

71%

#1 IP Tel

57%

#1 SPRouting

52%

Source: IDC, Frost & Sullivan: Q2CY13 tracker data for all technologies except NW Security where data is for Q4CY12.

71%

#1 SP Switching

Note: Market Share is quarterly market share (Q2CY14) 4Q Rolling share for Q2CY13 for all technologies except NW Security where it is for CY12

17%

#2 X86Blade Servers

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India & SAARC Channel Partners in FY’14: Story By Numbers

50% growth

Octane

44%2T growth

49Nos of Cities Covered

41%Upcountry (non metros) growth

11%Services Growth

65%Contribution to Cisco

Capital Biz

8696+Trained FOS

488Partner

Enablement Workshops

22%Services

Contribution to Cisco India Biz

26MRebates

40+Ecosystem

Partners

2600Unique Partners

Gold: 13Silver: 10Premier: 75

54%DVAR Contribution

40%AT Attach

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ENT Networking

Data Center

SP Video Infrast.

CY15 TAMCollab. SP

Mobility

$810M

SP Routing

Security

$3B

SP Video S&S

$653M

$340M$324M

$264M$230M

$222M$171M

Source: Field Market View TAM March 2014; APJ SPG – Market Insights Analysis

48% of the overall TAM is under penetrated

CY15 India Product TAM ($B)

IoT

ServersSP

Video

SPVideo

Optical

Security

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CY14 CY15 CY16 CY170

0.5

1

1.5

2

2.5

3

3.5

4

$2.7B

$3.6B

Internet of Things

Servers

SP Video

Security

CY14 CY17

Around 50% of TAM is expected to come from areas in which

we have very low penetration

Source: Field Market View TAM March 2014; APJ SPG – Market Insights Analysis

TAM is expected to grow to $3.6B by CY17

SP Mobility

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The Future Of Business in a Digital IndiaAre You Ready?

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India to be 3rd largest IT market in Asia Pac by 2016, 2nd by 2018

$73.3 BnIT spending by 2015

Dramatic shift in IT spending power: from IT to digital business units

In 2015:

15.7% 14%Growth inIT Services

Growth inSoftware

In 2015:

12.6% 4.2%Growth inDevices

Growth inTelecomServices

38%Of total IT

spend already

outside IT

50%Of total IT

spend outside IT, by 2017

100%Increase in Chief Digital

Officers since 2013

500%Boost in

digital jobs, by digital biz.

by 2018 Source: Gartner

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SOCIAL

MO

BILE

INF

OR

MA

TI

ON

CLOUD By 2018, there will be 526 Mn Internet users

in India

Digital Disruptors

Convergence of Mobile, Social, Cloud & Data Is Driving the Digitization of India

Digital Disruption

108 Mn

50 Mn

33 Mn

20 Mn

81% of India’s population use mobile

phone. 10% have smartphones

2 million mobile app developers in India

today. 3 million by 2017

By 2018, Video will be 62% of India's mobile data

traffic

Source: Cisco VNI Global IP Traffic Forecast 2013-2018; Nielsen 2013; ComScore 2013; IAMAI; Mint

By 2018, there will be 1.5 Bn networked devices in

India

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Setting the Stage for Transformation in a Digital India

“If Mr Atal Bihari Vajpayee’s government was known for national highways, Shri Narendra Modi's government will be known for broadband highways.”

Shri Ravi Shankar Prasad, Hon’ble Union Minister of Communications and Information Technology and Ministry of Law and Justice, IndiaFirst Post, May 27, 2014

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Real and Happening On Ground in India

Automotive: Plant Wide Connectivity

Digital Banking: HNI and Rural Solutions

Oil/Gas/Mining:Safety, Asset Utilization,

Automation

Enterp

rises

Smart Grid:Sub-station automation

City Safety & ITMS

Smart Cities:WiFi, ICT Master

Planning

Pub

lic Infras tructu re

Education: Remote Education

Healthcare: Primary / Preventive

Skills Dev.Skills Academy

Govt S

ervice s

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Serving the Digital Customer Today

Remote Experts: On-Demand

Transforming the Customer Experience At the Branch

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Branch Banking : “Its not one size fits all”Your Next Money Transfer Is A Tweet Away

Twitter and Group BPCE, France’s second biggest bank launch S-Money in September 2014

In

Works irrespective of the users bank. No need for users to add the beneficiary’s bank details

Rakuten Bank in Japan allows its mobile banking app users to send money to their Facebook friends

Source: Reuters

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Internet of Everything

Digitize the WorldConnecting: People Process Data Things

What will the Next Disruption be?

Intelligent Connections

ConnectivityDigitize Access to Information Email Web Browser Search

1996 - India’s first online newspaper starts: Rediff-On-the-NeT

Immersive Experiences

Digitize Interactions (Business & Social) Social Mobility Cloud Video

2009 - India’s SP industry disrupted with 1 Paisa per Second charges

Networked Economy

Digitize Business Process E-commerce Digital Supply

Chain Collaboration

1999 - India’s first e-commerce site launches: Fabmart.com

Business and

Societal Impact

The Evolution of the Internet

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DATA CENTER CAMPUS BRANCH PLANT FIELD

What Will It Take To Build A Digitized Company?

Information Technology (IT) Operational Technology (OT)

Token Ring

Ethernet

FDDI

ISDN

ATM

Converged Networks

IT / OT Convergence

Applications Centric Architecture

Through AutomationApps → Configure the network (SDN)

Apps → on the network (FOG) BYOA/I

Ethernet

WiFiKey Tenets of a Digitized Company

AppStore

AppMgmt

Application Enablement

Cyber

Physical

Security

IT/OT

Protocols

Convergence

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Cisco India & SAARC Sales Team: Organised for Success

Enterprise Segment

Top 250 Named

Accounts

CommercialSegment

Partner Led & Velocity

Business

Growth Vertical

New Opportunities

GSP

Global SPBusiness

Partner Organisation

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Elevate our conversation with our customers and be relevant

Cisco India & SAARC: Top 5 Priorities

Change the game. New business models. Outcome based transactions

Participate in nation building projects (National Broadband, eGov, Defence)

Go after the vast untapped TAM (IoE, DC, Security)

Let’s partner and accelerate mutual growth

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We Are Deeply Committed to India. Will Partner With You In This Journey

1997: Focus on Distribution / Sales

2007: Globalisation Centre East, 2nd HQ

2009: Major Innovation Expansion

2005: $1B Commitment… (1,700 people)

2012: Globalisation Centre Expansion Across Functions• Expansion of Functions. 10,000 people. 3rd Best Co. to Work For • Deep investment in Engineering (8000+ people)

• Focus Emerging Countries / Markets. S+CC, Inclusive Growth• Additional Product Families. Project Samudaya: Virtual HC/Education

• R&D, Business Development, Support / Services

• Goal… All Functions / 10,000+ People• Expansion Executives / Resources (20+)• Additional $100M Venture Capital & 20% Top Talent

2014: Next Generation Globalisation Centre (11,200 people)• Evolution of Local Leadership. Thought Leader in Industry Bodies• Country Transformational Partner. Additional $40M Venture Capital

We came to India for the costs, We stayed for the quality,

We invested for innovation, And Now We’re Creating a New Industry

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Cisco Connected Partner Ecosystem

ConsultingPartners

ServicesPartners

ServiceProviders(SPs)

Independent SoftwareVendors (ISVs)

MSI

Distributors

TechnologyPartners

LearningPartners Cloud

Partners

SolutionsProviders/Systems

Integrators

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Together, our future is bright

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Thank you.

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Together, our future is bright

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Deep Relevance for Cisco with Digital India

PUBLICATION : THE TIMES OF INDIA EDITION : BANGALORE DATE : 24 SEP, 2014