Cisco & IP Next Generation Networks: Enabling the ...library.corporate-ir.net/library/81/811/81192/items/262738/Cisco...Generation Networks: Enabling the “Experience Provider”

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

Cisco & IP Next Generation Networks:Enabling the “Experience Provider” Transition

New Carrier Ethernet Innovations

Pankaj Patel, SVP, GM SP Routing & TechnologySuraj Shetty, Senior Director Worldwide SP Marketing


GAAP Reconciliation and Forward-Looking Statements

During this presentation references to financial measures of the Company will include references to pro forma financial measures. Cisco provides a complete reconciliation between GAAP and pro forma financial information on our website at www.cisco.com under “About Cisco” in the “Investor Relations” section.

www.cisco.com/go/gaap_recon

GAAP RECONCILIATION

FORWARD-LOOKING STATEMENTS

This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of the Company, 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 the Company’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 forward-looking statements.


Experience Provider Transformation

Live Broadcast

Telecoms

Time-ShiftMulticast

VoD Streaming

Internet Downloads

Internet Access/Data

Voice &VoIP

Broadcast

Satellite/ Wireless

Over the Top

Wireline

Cable

ContentProduction

Business Services

3GVideo

VideoAlliances

IPTV

Digitalization

iTunes


Video Impact

“…Cisco says consumer video will be responsible for a significant portion of the Internet-based traffic increases from 2006 to 2011, with video streaming and downloads increasing from 9% of all consumer Internet traffic last year to 30% in 2011.”

August 14, 2007

Video Surge Divides Web WatchersPessimists Say File Swapping Is Creating Traffic Jam,

But Optimists, and a Cisco Report, Call Fears Overblown

Video Surge Divides Web WatchersPessimists Say File Swapping Is Creating Traffic Jam,

But Optimists, and a Cisco Report, Call Fears Overblown


Cisco IP NGNSupport Experience Provider Expansion / Growth

Cisco IP NGN


IP NGN Carrier Ethernet Design Momentum

Carrier Ethernet•ME 6524•ONS 15310

Carrier Ethernet•E-FTTH•OAM

Mar 06 Sep 06 Mar 07Dec 06

•Ethernet-Enabled DWDM

Video 2.0•7600 with ISG & SBC

Carrier Ethernet Innovations Enable the Connected Life

Sep 07

BB Innovations•10000 Series•PRE-3 / ISG

Jun 06 Feb 07

Predictable Business Services•12K SBC

Extending Ethernet Fiber to the HomeIntroducing the ME 3400-24FS

Bringing SONET/SDH SLAs to Carrier EthernetExtending 50ms Resiliency From Core to PremiseEnhancing OAM and IP SLA with Embedded Event ManagerEnhancing Video Quality with IPTV SLA


Industry’s Most Cost Effective E-FTTH PlatformIntroducing the Cisco ME3400-24FS

E-FTTH EverywhereExtends Fiber Reach in High Rise Multi-Tenant Units Flexible Mesh or Ring TopologiesRapid Recovery with REP (50ms)Incremental Revenue Models

Cisco E-FTTH Momentum

Apartment Home Enterprise

Extending Ethernet Fiber

Aggregation Node

ME 3400 -24FS


Cisco Carrier Ethernet PortfolioHigh Performance, High Value

$$$

4500 / ME4924

ME6524 / 6500

ME3400 Series

10/100100BXGBE

10/100GBE

100BX1000BX

GBE10Gig

3750 Metro

10/1001000BX

GBE10Gig

100BXGBE

10Gig

7600 Series$$

$

Purpose Built Intelligence and Scalability


IP NGN Network Layer

Enterprise

ME 34003750 MetroME6524

4500 E-FTTH

Residence

xDSL/PON

Consumer Services

Business Services

IP/MPLS

1G

76007600

10000 BRAS

CRS-1

ME 3400

Multi-Dwelling Units

ISRME 6524

12000 MSE

100BX

1G

IP/MPLS

Enterprise

MPLS

1G

E-FTTH

Enterprise

Mobile RANWiMAX3G/4G

MDU3G/4GWiMAX


Bringing SONET/SDH SLAs to Carrier EthernetResiliency Advantages: Cisco End-to-End

50 ms RecoveryCisco 4500

ME34003750 Metro ME6524

E-FTTH AccessMPLS FRR / REP

AggregationMPLS FRR / REP Core

Distribution Node

AggregationNode

Cisco 7600

E-FTTH AccessThird Party

AggregationMPLS FRR

Core

Distribution Node

AggregationNode

7450 7750

E-FTTH AccessThird Party

AggregationMPLS FRR Core

Distribution Node

AggregationNode

mx960 mx960

50 ms Recovery

Third Party

50 ms Recovery

T1600

Cisco 7600 CRS-1


Bringing SONET/SDH SLAs to Carrier EthernetIntroducing IPTV SLA and Embedded Event ManagerBringing SONET/SDH SLAs to Carrier EthernetIntroducing IPTV SLA and Embedded Event Manager

Experience Provider Benefits Customer ExperienceResolve issues fasterVisibility to business impactReduces customer churn

E-FTTH AccessCarrier Ethernet

Aggregation CoreDistribution

NodeAggregation

Node

Cisco 7600 Cisco 7600Video

Headend

CRS-1X

Video or Network

Impairment

IPTV SLA

Improved ExperienceReduced Service Outages

AggregationE-FTTx Access Core

Embedded Event ManagerAutomated Instrumentation


“A ground-breaking test commissioned by Light Reading -- the first of its kind -- has shown that equipment from Cisco System Inc can scale to 1 million IPTV customers with carrier-grade features such as quality of service (QOS) and resilience…….The Bottom line? The test successfully demonstrated one of the largest simulated IPTV networks to date ”

Light Reading June 2007

Carrier Ethernet and IPTV Leadership


Competitive Advantages

Quad-Play Linkages

Flexible Architecture L3 emulating L2

Secure Virtualization

Yes: Layer 2 + 3

Video Support

Yes No

40G IPoDWDM

Video QoE

No Fabric McastFabric Multicast

NoYes

NoYes

NoYes

Head-End to STB Yes

No

Fixed: L2 - 7450L3 - 7750

No video products No video products

No

Distributed Processing No, control plane only

Yes, data and control planeCor

eC

ore

Edge

Edge

Vide

oVi

deo

Multi-chassis No multi-chassis92Tbps with multi-chassis

No coreproducts


‘Any Play’ Competitive Positioning

Carrier EthernetMXSeries-X: L2 MXSeries-R: L3

7450: Layer 27750: Layer 3

Layer 2/3Architecture Flexibility

NoNoYesWiFi-Mobile AggregationMobility

NoNo YesDeep Packet Inspection Ctl BusNoDHCP OnlyYesIntegrated BRAS/ISG

Data

NoNoYesSession Border Controller/ Lawful Intercept

Voice

NoNoYesPhase 1 Appliance

Error Repair/Rapid Channel Change (VQE)

NoNoYesIntegrated Admission ControlVideo

Juniper MX-Series

Alcatel 7750/7450

Cisco7600


Carrier Ethernet – Q2 2007 Routing andSwitching Market Share

33.1%

57.6%

6.2%

Cisco Juniper ALU

Ethernet Services Edge

71.2%

13.5%

Cisco ALU

Access/Aggregation

64.1%

23.7%

Cisco ALU

Carrier Ethernet TotalESE + Access/Agg


0%

10%

20%

30%

40%

50%

60%

70%

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Cisco ShareJuniper ShareALU Share

SP Edge Routing & Switching Market share trends

59.6%59.6%

13.9%13.9%

11.3%11.3%

Market Share (%)

58.3%58.3%

17.8%17.8%

14.3%14.3%


Forward-Looking StatementsThese 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 the development of our markets, the future of networking, Cisco’s strategy and positioning, and our ability to foresee market transitions) 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 and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth 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 and other customer markets; 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; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks, including risks relating to our continued transition to a new manufacturing model; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters; natural catastrophic events; a pandemic or epidemic; achievement of the benefits anticipated from our investments in sales and engineering activities; our ability to recruit and retain key personnel; our ability to manage financial risk; currency fluctuations and other international factors; potential volatility in operating results and other factors listed in Cisco’s most recent reports on Form 10-K and Form 10-Q. 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 Form 10-K and Form 10-Q, each as it may be amended from time to time. Cisco's results of operations for the three and nine months ended April 28, 2007, 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 the presentation slides and the related conference call.


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Cisco & IP Next Generation Networks: Enabling the ...library.corporate-ir.net/library/81/811/81192/items/262738/Cisco...Generation Networks: Enabling the “Experience Provider”