Cisco Quick Hit Briefing Battle the Demons of the Gray Market with Cisco Certified Refurbished

1. You shall not buy gray market! Cisco Quick Hit BriefingBattle the Demons of the Gray Market with Cisco Certified Refurbished Connect using the audio conference box or you can call into the meeting: Toll-Free: (866) 432-9903 Enter Meeting ID: 208 642 103 Press “1” to join the conference. Brian Avery Territory Business Manager, Cisco October 30th, 2014

2. Welcome and Agenda • Introduction • What is a Quick Hit Briefing? • Battle the Demons of the Gray Market with Cisco Certified Refurbished Equipment • Cisco Promotions • Tools and Resources • Conclusion • Brian J Avery • Territory Business ManagerFlorida Territory Commercial • bravery@cisco.com • Priors: • Cisco Sales and Channels (9 yrs) • President and CEO (6 yrs)Cisco Premier Partner • Director of Sales (2 yrs)Cisco Silver Partner • Financial Analyst (7 yrs)Sprint Corporation

3. What Is a Quick Hit Briefing? A weekly partner briefing series designed for Cisco Commercial Territory partners Concise, relevant updates on: Cisco products and solutions Partner programs and promotions Partner Enablement – Demand Generation, Selling Skills, Closing Tools, etc. Next Quick Hit Briefing New Cisco Collaboration and UC Options for SMB Customers Thursday Nov 6th, 2014 at 9:30 ET Check http://cs.co/quickhit for registration links and replays

4. The Demons of the Gray Market

5. Gray Marketers We have a Cisco logo. We must be legit!

6. We would never try to trick you, Precious! The Gray Market • There are literally 1,000s of unauthorized gray market resellers active today • Easy to look legitimate • Usually when a product price/offer appears “to good to be true” it is a gray market reseller • Products sold in the Gray Market are: • Used and sold “as is” without warranty, SmartNET or support • Cobbled together from multiple DOA or used products (FrankenCisco) • Stolen! • Counterfeit!

7. The Gray Market

8. The Gray Market • Products sourced from outside authorized Cisco channels are not guaranteed by Cisco. • These products may have invalid warranties, and definitely have invalid software licenses, no support entitlement, and/or incorrect product configurations. • Cisco is not able to offer support, software updates, hardware replacement or SmartNET coverage on gray market products • Presents a huge business risk to the customer Tell your customers to verify! www.cisco.com/go/warranty/ www.cisco.com/go/partnerlocator/

9. Gray marketers everywhere! What do your elf eyes see? Cisco Certified Refurbished Equipment

10. The Cisco Secondary Market • Market is large and growing • All customer segments • All Cisco technologies • Your customers ARE buying secondary market equipment • Drives up discount levels on new equipment • Proactively positioning Cisco Certified [-RF] products is the best way to compete $3 Billion Global Annual Sales

11. Existing Partner Benefits A lower-cost alternative Improved ROI and profitability Single source for new and pre-owned Cisco equipment needs Immediate delivery Access to end-of-sale products Green - recycle, refurbish and dispose

12. Cisco Certified Refurbished EquipmentProgram Specifics • In existence since 2001 • Cisco’s authorized division of refurbished equipment • Reside under Cisco Capital organization • New and end of sale Cisco products across all technologies – 3,500+ products • Competitive Pricing 65-80% off New List • Supply available through Cisco supply chain and lease portfolio • Sold through authorized Cisco resellers and distributors or to direct Cisco customers

13. Cisco New and Pre-Owned Comparison

14. CCRE Value Chain – Where Does it Come From? Remanufacturing Process Routes to Market Product Sources Stock Rotations Service RMA and Trade-Ins Lease Returns Selective Buybacks Manufacturing Overruns End of Sale Inventory Cancelled Orders Lab Equipment Internal IT Refresh Direct Customers

15. Cisco Certified Refurbished EquipmentRemanufacturing Process INSPECT UPGRADE TEST REPAIR CLEAN AND RECONDITION PACKAGE

16. Cisco World-Class Contract Repair Manufacturers and facilities ISO 9001-2000and 14001 Certified Processes Parts sourced from Cisco Approved Vendors List (AVL) Cisco proprietary tests and specifications Process Control Systems and Continuous Improvement—LEAN processes ESD—Static Control systems in place Regular calibration of all test equipment All Cisco Engineering Change Orders incorporated Current IOS rev and license loaded Cisco Certified Refurbished Equipment Key Differentiators - Cisco Remanufacturing

17. Cisco Certified Refurbished Equipment for Maximum Profitability Managed Services Infrastructure Projects Sparing • Price savings story • Cisco warranty on all boxes; customer should not care between new and refurbished • Used in lieu of 4-hour contracts • Services savings cost – enabled when products go into production • Use to lower hardware costs • Managed services are usually SLA or service-driven sales

18. Breadth of Product Lines • Continually evaluating Cisco Inc. products and adding new refurbished products to portfolio • 3,500+ products, across all technologies • End of Sale products also available

19. Frequently Asked Questions

20. Can We Finance Cisco Certified Refurbished Equipment? • Yes, and you can finance new product on the same deal as refurbished! • Help customers: • Lower total cost of ownership • Reduce financial risk • Realize tax savings • Simplify operating budgets • Make the most of their capital budgets • Work with Remarketing Manager or Cisco Capital Channel Account Manager for assistance

21. What if You Don’t Have Inventory in Stock? • Contact your designated Remarketing Account Manager • We can help you: • Gain visibility to inventory going through remanufacturing process • See inventory coming back from Cisco supply chain or Capital leases • Search for a similar version of the product • Consider the previous-generation version of the product, if applicable

22. Transparency • Pre-Owned Equipment price list and availability available to all • - Sign up at refurbquestions@cisco.com • - View online at www.cisco.com/go/refurb • Inclusion of stock not yet refurbished • Dynamic inventory – check availability often • Email us if desired products or quantities are not listed

23. Yes, product can be put on short-term reservations If product is in stock on Cisco website (www.cisco.com/go/refurb), Contact your Distributor Distributor’s Cisco purchasing team can create a product reservation with Cisco If product is not in stock or shows insufficient quantities: Send request to refurbquestions@cisco.com Can I put products on hold or reservation? Objections

24. How Do I Overcome Objections to “Refurbished”? Objection Your Response: I can get it cheaper from another source • Hidden costs – inspection and re-licensing fees may apply • Possibility of poor quality and performance if not refurbished to Cisco standards • Cisco typically will not support the product My source provides a warranty • Hardware replacement only; no software support • Network functionality intelligence is in the software, not the hardware • Will the seller be there tomorrow? Refurb = used = poor quality • Fully tested and remanufactured to “like new” condition • Same warranty and support options as new product • Fully supported by Cisco; sold through Cisco authorized channels

25. Tools and Resources

26. View available CCRE inventory Upload entire Bill of Materials (BoM) Compare new and refurb pricing 1 Click Tool! • Show discount impact of blended solution • Run what-if scenarios www.cisco.com/go/1ct

27. Remanufactured Equipment in CCW • In CCW, you can now search, quote, configure, and order remanufactured equipment and attach applicable services. Remanufactured Equipment orders should no longer be placed using the Refurbished Equipment Ordering Tool. You must place orders for all remanufactured equipment in CCW. – www.cisco.com/go/commerceworkspace/ • Within CCW you can now perform the following activities: • View equivalent pricing • View the available remanufactured inventory • Request inventory reservations • Request non-standard discounts

28. Cisco Certified Refurbished Equipment Incentive Program (−RFIP) • Rebate Opportunity • Must be a Certified Partner – Select or higher • Must maintain certification status during the entire period of participation • Must meet minimum net bookings requirements of $62.5K on a quarterly basis (US net) per Rebate Period • Receive a 3% Rebate on all purchased CCRE SKUs. • Enroll via Cisco Partner Program Enrollment – www.cisco.com/go/ppe/ • More details - http://www.cisco.com/web/ciscocapital/refurbished/rfip.html

29. Cisco Certified Refurbished Equipment Resources • Cisco Capital Refurbished Equipment Home Page | Click Here • CCRE Contact List | Click Here • CCRE Partner Resources | Click Here • CCRE Program At-a-Glance | Click Here • Download the Current Inventory List | Click Here • View Inventory and Manage Orders in CCW | Click Here • Program At-a-GlanceThe Cisco Certified Difference for Partners • Operations PlaybookPlaybook for Selling Cisco Certified Refurbished Equipment

30. Resources for Your Customer • Program At-a-Glance The Cisco Certified Difference for Customers • What Cisco Certified Refurbished Equipment can do for: • US Federal GovernmentGovernmentProvincial, State and Local GovernmentEducationEnterpriseService ProviderSmall and Medium Businesses • Reference Materials • Quick Comparison (Side by Side Matrix)The Cisco Certified Remanufacturing ProcessThe Cisco Certified Difference–VideoRemanufacturing for a Greener Planet • Think Smart about Buying Used Cisco Equipment (web microsite) • IDC Publication–“Creating Policies to protect IT Infrastructure” | Click Here

31. CCRE Use Cases • CCRE Use Case 1 – Highly Competitive, Price Sensitive Situations  | Click Here • CCRE Use Case 2 – Customer Looking at Sparing Strategy  | Click Here • CCRE Use Case 3 – Customer Developing XaaS  | Click Here • CCRE Use Case 4 – Customer Already Buying Used Equipment | Click Here • CCRE Use Case 5 – Public Sector LPTA Projects | Click Here

32. Defend Your Position • BP Network Integrity Begins at the Source – Explains the benefits of purchasing Cisco products from authorized channels as well as the huge business and financial risks from purchasing gray market gear. • Cisco Systems Secondary Market Policy – Explains Cisco’s policy regarding products purchased from unauthorized sources • Cisco Brand Protection | Click Here • Cisco Capital Financing | Click Here • Cisco Service Finder Tool | Click Here • Cisco Warranty Finder Tool | Click Here

33. Contacts & Resources Contacts http://www.cisco.com/web/ordering/ciscocapital/refurbished/contacts.html General Questions refurbquestions@cisco.com External Website www.cisco.com/go/remarketing Partner Marketing Central www.ciscopartnermarketing.com (In the Campaign section, search for “CCRE”)

35. Join Us Next Week! Next Quick Hit Briefing New Cisco Collaboration and UC Options for SMB Customers Thursday Nov 6th, 2014 at 9:30 ET Check http://cs.co/quickhit for registration links and replays