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November 8, 2006

SIS98 End-of-Support Plan - Europe More detailed. November 8, 2006. SIS End-Of-Support Countries applicable. Austria Belgium Denmark Finland France Germany Greece Ireland Italy. Luxembourg Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom.

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November 8, 2006

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  1. SIS98 End-of-Support Plan - EuropeMore detailed November 8, 2006

  2. SIS End-Of-SupportCountries applicable • Austria • Belgium • Denmark • Finland • France • Germany • Greece • Ireland • Italy • Luxembourg • Netherlands • Norway • Portugal • Spain • Sweden • Switzerland • United Kingdom

  3. SIS End-of-SupportMigration Summary CUSTOMER SIS PRODUCTS KEEP THE EXISTING PRODUCTS AND BUY NEW SUPPORT: SUPPORT MIGRATION OPTION 2: INACCURATE CUSTOMER DATA OPTION 1: ACCURATE CUSTOMER DATA INCENTIVE REPLACE THE EXISTING PRODUCTS BY BETTER AND MORE SECURE NEW PRODUCTS: PRODUCT CHURN. INCENTIVE

  4. Support Migration Options Options Data quality

  5. Incentives Options Data quality Extra discount off net booking

  6. SIS End-of-SupportOption 1 CUSTOMER SIS PRODUCTS KEEP THE EXISTING PRODUCTS AND BUY NEW SUPPORT: SUPPORT MIGRATION OPTION 2: INACCURATE CUSTOMER DATA OPTION 1: ACCURATE CUSTOMER DATA INCENTIVE REPLACE THE EXISTING PRODUCTS BY BETTER AND MORE SECURE NEW PRODUCTS: PRODUCT CHURN. INCENTIVE

  7. CSSP CBR Option 1 : Contract Migration Partner buys support for legacy products: CSSP or CBR Full Product/Site details required Available to 1-tier and 2-tier CSSP Channel Partners and 1 tier CBR Channel Partners Standard renewable contracts

  8. Option 1 Contracts Migration Process • Partner runs his data through the SNIF tool. Partner needs to verify that products have not reached EOS • Cisco provides Partner with a template to complete with customers’ installed base data (Product #, SN, Customer Site ID) • Partner logs a case in SSC to request SIS98 migration quote and uploads installed base to the file (one template per customer per service level) • Within each customer template, all products carry the same start and end date • If Partner has an existing CSSP or CBR contract number for a customer to be migrated, they must provide it

  9. Option 1 Contracts Migration Process, cont. • Cisco checks template cleanliness and verifies that products are not already covered by a CSSP or a CBR contract • Cisco posts the quote(s) online for the Partner; they remain open for ordering for 60 days • Partner submits PO(s) online • Cisco converts quote(s) to contract(s) • For upgraded services, Cisco does a service availability verification • If a quote request contains clean and unclean data, Cisco quotes the clean data and sends the unclean portion back to the Partner for re-work

  10. Option 1 Logging your request • Use the Service Support Center: www.cisco.com/go/ssc • One case per customer per service level

  11. Option 1 Logging your requests Select topic and sub-topic as Service ‘marketing programs/SIS98/Migration’ in the drop-down menus

  12. Option 1 Logging your requests • Add email to be copied if you wish • In the Subject field enter the following syntax: “SIS98 Migration–Partner Name–Country-end user name” • Enter your SIS98 migration request in the Question box. This must conform to the following: • All the site IDs must be provided in the Excel file • The form must be properly filled out without altering any information • All the information must be provided • All the items which are End-of-Support must be removed Attach the SIS98 migration request template with all required information (the request will not be accepted if required information is not completed) • Click on Submit Request • The system should bring up a list of questions that may be of interest. Continue to click on Finish Submitting Request to confirm request creation • Please note that if the title is not properly formatted the request will not flow through the correct channels and the discount will not be added

  13. Option 1 Template 1. On the first page of the template, enter the Service Level, Start & End Dates, Requester CCO user ID, existing contract number to which products should be added (if applicable) and Bill-to ID or Address 2. Import the data for which you have run a SNIF report and eliminated EOS products Go to the quotation tab 3. Enter the site ID to be used for each line 4. Then go through the lines and eliminate all irrelevant data, such as products already covered or duplicates

  14. Option 1 Template, first page 1) Enter required data 2) import SNIF data

  15. Option 1 Template, page 2 3) Add site IDs to be added 4) Only keep the lines you select to be migrated

  16. Option 1 Incentive (EUP346) • Partners will be given additional discount off their current net pricing, for submitting CBR or CSSP contracts early. For requests submitted in • Nov 2006: +70% off net • Dec 2006: +70% off net • Jan 2007: +60% off net • as of Feb 2007: no more incentive Early Service Migration Discount scheme discount off current net pricing

  17. Option 1 Migration & Incentive Rules • Migrated contracts will have a start date of April 1, 2007 • Before April 1, 2007, support on migrated contracts will still be available using the SIS98 contract • Minimum duration of the migrated contracts will be three months • Incentive eligibility: this is only applicable for contracts where all required clean data can be provided • The promotion discount applied will be that of the date we receive the clean data to process the quote • The migrated contracts maximum duration will be three years, but the incentive discount only applies to the first year

  18. Option 1Migration impact to PMC metrics • The migrated contracts will impact the installed base Denominator and the Renewal Rate metric • The End Date of the items migrated from SIS/RSA to an annual renewable contract will determine if the items will impact the Renewal Rate in FY07 or later. If the contract end date is earlier than August 1, 2007, it will impact the FY07 Renewal Rate Recommendation: in order to minimise impact to the FY07 Renewal rate, it is advisable to order contracts longer than five months.

  19. Option 1 Flow Cisco Partner Fills template to request CSSP, CBR or Co-Brand contract • SSC validates: • data quality • EOS • if not covered • service availability Logs case in SSC Attaches template Good ? YES NO Returns list or partial list to Partner for rework Partner submits PO online on SCC Creates quote with incentive as applicable, posted online, valid 60 days Quote converted to contract (1 per EU per service level)

  20. SIS End-of-SupportOption 2 CUSTOMER SIS PRODUCTS KEEP THE EXISTING PRODUCTS AND BUY NEW SUPPORT: SUPPORT MIGRATION OPTION 2: INACCURATE CUSTOMER DATA OPTION 1: ACCURATE CUSTOMER DATA INCENTIVE REPLACE THE EXISTING PRODUCTS BY BETTER AND MORE SECURE NEW PRODUCTS: PRODUCT CHURN. INCENTIVE

  21. Interim Option 2 : Interim Support Partner estimates his legacy installed base value, for which he will have to pay for a limited amount of support for a maximum of one year Full Product/Site details NOT required Only available to CSSP Partners Support delivered will on reasonably commercial efforts Contract provides a quota of support The Interim contract will require Partners to sign a non-negotiable legal amendment to their current support agreement prior to January 31, 2007

  22. Option 2 : Interim set-up process 1 Cisco will set up an Interim contract to deliver support for products where the Partner cannot provide serial numbers and customer details for contracts set-up. 1. If the Partner decides that he wants to use the Interim contract, he must request an Interim contract amendment document from his CSAM, sign it and return it to Cisco by January 31, 2007 latest. Terms & Conditions of the Interim support are not negotiable.

  23. Option 2 Set-up process 2 2. Partners must provide the CSAM with the estimated installed base value to be supported under the Interim contract by January 31, 2007 latest. The installed base value estimate should be based on US SNT NBD price (as in PMC) 3. Based on this value, Cisco calculates a quota of cases and RMAs the Partner will have the right to initiate under this Interim contract (service usage). CSAM confirms to the Partner the Interim contract service usage and cost levels and asks the Partner to issue a PO to cover the contract

  24. Option 2 Set-up process 3 • Cisco provides an online quote for Interim support. The Partner submits online the Purchase Order for the Interim contract by February 16, 2007 • When the PO is processed, CSAM provides the Partner with the Interim contract number

  25. Option 2 Interim Contract support « Quota » The allowed quota of cases and RMAs will be based on the CSSP Metrics thresholds at Level 3. To allow monitoring of the service usage as a combination of cases and RMAs, usage will be computed in points, where 1 case = 3 RMAs Example: For an IB value of 3M$ (at US SNT NBD list) • level 3 case quota = 60 = (20 X 3,000,000) ÷ 1,000,000 • level 3 RMA quota = 180 = (60 X 3,000,000) ÷ 1,000,000 Service usage for this installed base is then 3x60 + 180 = 360 points.

  26. Option 2 Interim contract PMC impact • The Interim contract will be included in PMC metrics measurements • The service usage quota will be implemented by applying upfront a negative adjustment to the metrics in PMC. Taking the previous example, we would then apply in PMC -60 cases and -180 RMAs • No adjustments to the Interim contract cases and RMAs will be accepted; we will not remove mistakenly opened cases or RMAs from the Interim contract ATTENTION: Partners must use the right contract numbers to open service requests and RMAs to ensure they do not use up their service quota by mistake.

  27. Option 2 Interim contract pricing Example of approximate costs and service quota values for a Partner with a CSSP discount of 75% There will be no refund if the full service usage quota has not been used during the one year period: the unused upfront negative adjustment will anyhow benefit the Partner’s overall metrics measurement

  28. Option 2 Interim contract set up Flow Partner Cisco • Partner accepts • Interim T&Cs • Partner provides • Interim IB value Defines service quota and Interim value CSAM Partner provides PO to cover Interim usage CSAM Booking confirmation CSAM PO Booked ONLINE and invoiced Partner receives Interim contract #

  29. Option 2 Interim Contract Governance • Eligibility criteria: CSSP partners only • The Interim contract will run from April 1, 2007 to March 31, 2008 (max 12 months) or until the Partner has used up his support quota, whichever is the earlier • When a Partner has used up his service quota, he will be notified by CSAM or WW PST and the Interim contract termination process will be initiated

  30. Option 2 Interim contract Usage monitoring Partners can monitor their service usage for themselves: Case data can be obtained using the TAC service request tool http://tools.cisco.com/ServiceRequestTool/query RMA data can be can be obtained using the RMA service order status tool http://tools.cisco.com/serviceordertools/svosubmit/tools.do

  31. Migration Options Comparison • Installed base value of 1M$ at US SNT NBD • CSSP discount of 75% • Option 1 : Partner has good data quality and purchases one year of CSSPD support with the November incentive discount Cost to Partner: 86,250$ • Option 2 : Partner has inaccurate data and purchases one year of limited support Cost to Partner : 287,500$ Limited support : 20 cases & 60 RMAs maximum

  32. SIS End-of-SupportMigration Summary CUSTOMER SIS PRODUCTS KEEP THE EXISTING PRODUCTS AND BUY NEW SUPPORT: SUPPORT MIGRATION OPTION 2: INACCURATE CUSTOMER DATA OPTION 1: ACCURATE CUSTOMER DATA INCENTIVE REPLACE THE EXISTING PRODUCTS BY BETTER AND MORE SECURE NEW PRODUCTS: PRODUCT CHURN. INCENTIVE

  33. Product Churn Incentive (EUP345) • Partner uses the CTMP trade-in program to purchase new products to replace old products INCENTIVE: For 1T Partners only, but for all contract types purchased, Cisco will provide a service credit equivalent to 12 months of the basic service level of the contract type purchased (service purchased upfront at time of product order). This incentive will be available from November 1, 2006 to July 27, 2007.

  34. Churn Process • Partner requests a quote for products he would like to trade in > CTMP Quote will be processed by CAM (Cisco to Cisco CTMP only) • Partner submits a Trade-in order, reference the promotion code set up, and orders the service required • CS verifies the CTMP order and promotion compliance, books the order, applying the trade-in discount and booking the service lines at full cost • Products are delivered to the Partner • Partner has 90 days to returns the old products (Cisco paid pick-up process); Cisco Asset Recovery validates the returned products and closes the RMAs

  35. Churn Process, cont. • Cisco uses CTMP and Asset Recovery reporting to identify which orders are eligible for service credit • Partner will receive one credit memo for the total of all the orders eligible for a service credit • Payment of the credit memo will be 90 days from the last new product shipment after the promotion period ends

  36. Churn Incentive Rules • 1T certified CBR and Shared Support Partners with a legacy SIS installed base are eligible for this incentive • Equipment must not be at End-of-Support • Old products must be returned to Cisco and the CTMP credit value must represent at least 8% of the new product order value at GPL • The Service credit value will be equivalent to 12 months of basic service level of the contract type purchased • If a Partner orders an upgraded service level, he will fund the difference between this and the basic service value

  37. 1T partner churn process Partner Cisco Partner request quote for CTMP deal CAM creates CTMP quote (non competitive only) AM validation CS – promo id exception routing for approval Places CCO order w/ trade in quote + promo id + CTMP id CS books order applies CTMP % CS generates return RMA # Asset Recovery check returned Products – close RMA Partner returns old product to AR when new delivered (SO#) Credits are calculated for eligible orders After promo period, Cisco Finance raises credit Partner receives credit/rebate

  38. How will we entitle?

  39. SIS Contracts Terminated End of service only incentive Accept Interim T&C Provide Interim IB value Start collecting & converting migration data Product Churn incentive terminates Limit date to provide Interim usage PO Interim contract terminates Communicate externally Launch Plan and Incentives Apr 1 Jul 27 Mar 2008 Jan 31 Nov 1 Nov Feb 16 Milestones

  40. SIS98 End-of-SupportFAQ

  41. 1) How will Cisco help me migrate to Serial Number entitled contracts?On request, Cisco can provide Partners with historical shipments data, lists of existing customer addresses and contract numbers. Cisco can also help Partners to identify serial coverage and train Partners on using SNIF tool. However, please note: report requests may take 3-4 weeks to fulfil. 2) If I don’t migrate a customer’s products by March 31, what happens? Your customers’ products will no longer be entitled to Cisco support. 3) What is my last alternative when support is required for a non-entitled product? A Partner always has the option to purchase Time & Material support as per the service and support price list.

  42. From the Service & Support PL

  43. 4) Why is the service quota for the Interim contract computed at Level 3 metrics? Level 3 sets a limit on the volume of services delivered versus the price paid. If we set at Level 2, and the Partner performed at Level 3, the Partner would be able to declare a lower value installed base than that which is really being supported. 5) Will the entitlement process be different for the Interim? No. The same entitlement data will be required as for the other contracts. However, we will not enforce the entitlement on the Serial Number, but only enforce on the contract number.

  44. 6) How will Cisco compensate me or otherwise accommodate me to support my spare parts investment ? Compensation is not required. Cisco requires customers’ products to be covered by contracts, not the spare parts that you may hold. If a customer’s defective product is replaced with a spare part, you are required to update the contract with the serial number change. This means that spare parts do not need coverage. This operation does not require the payment of any support fee.

  45. 7) What serial number will be required when we report a network problem, rather than a device problem? If you are unable to pinpoint the device causing the problem, you should provide the serial number of a device that is part of the network and seems most likely to have caused the problem. 8) Can we use the Discovery tool for serial number collection? No. The product SN used to set-up a contract is the SN on the sticker outside the product. This SN is not always the same as the SN collected using a Discovery-type tool (electronic SN). If we try to use this electronic SN to set up a contract, our contracts system may not identify the product and the quote may be rejected.

  46. 9) Is Cisco planning some form of communication to the market regarding SIS End-of-Support and migration? No. As SIS was a Partner Program, its End-of-Support concerns only Cisco Partners. 10) Can I give my customer the details of SIS End-of-Support?No. Cisco’s Support Programs with its Partners are confidential. 11) Why is the Interim contract not available to CBR Partners? CBR Partners are only supposed to resell Cisco Branded contracts. Therefore they should not have to provide back-to-back support for their unclean installed base.

  47. 12) What exactly was communicated in Jan 2004 regarding the SIS End of Life? 13) Where can we find more details on the promotion? http://www.cisco.com/global/EMEA/promotions/1_tier/current/index.shtml

  48. 14) We understand the need for proper entitlement. However, hard serial number entitlement is unrealistic because of constant moves/adds/changes and the impossibility of obtaining serial numbers in large take-over situations. Have you allowed for the use of other elements for entitlement which we are able to gather and manage remotely with modern network/asset management tools? The other elements collected by such tools do not enable us to validate precisely the products that need to be supported, accurately provide spares or correctly price the support for those products.

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