Cisco Value Incentive Program Update - VIP Program Evolution

1. PROGRAM PERIOD 14— August 4, 2009, 8:00 a.m. (PDT)

2. Cisco Value Incentive Program Commitment to Partner Profitability August 4, 2009

3. Agenda • What’s New: • VIP Evolution • Borderless Networks, Collaboration and Virtualization • Multinational • CSAT • Program Rules • Program Summary • Tool • VIP Tool: Enrollment • Partner Program View: Booking & CSAT • Support

4. What’s New VIP Evolution Borderless NetworksCollaborationVirtualization Multinational CSAT 4 © 2009 Cisco Systems, Inc. All rights reserved. Presentation_ID Cisco Confidential

5. UC  Collaboration DC  Virtualization Security, Wireless  Borderless Networks Next Generation VIP ProgramBegins with VIP Period 14 In Line with the Cisco and Cisco Channel Partner Program Evolution, VIP Is Evolving and Increasing Benefits for Partners thatSell Advanced Solutionswithin an Eligible Architectural Play • Architectures drive business transformation

6. Virtualization Storage Networking Unified Computing System Collaboration TelePresence Borderless Networks Switching Routing Wide Area Network Optimization Next Generation VIP ProgramBegins with VIP Period 14 New VIP Subtracks

7. Next Generation VIP ProgramBegins with VIP Period 14 Support WW Channels goal of driving greater Partner Capability by: Development of the first theater wide multinational master specialization to allow partners greater differentiation across an entire theatre Provide more flexibility for partners doing business in multiple geographic regions Aligning the financial incentives (VIP) to recognizes these investments Multinational Master Specialization Strategy

8. Next Generation VIP ProgramBegins with VIP Period 14 Customer Sat simplified across tracks. Partners only need to achieve one score and one number for valid responses and it will apply to all tracks that partner enrolled Measure CSAT twice a year (end of Q2 and Q4), on a rolling 12 month window Based on outcome, partner will be eligible for VIP payout for any track (must meet all other requirements at sub track level) Customer Satisfaction Process Simplified

9. VIP14 Program Rule —Borderless Networks 9 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

10. VIP Borderless Networks *APAC only**Only Opportunity Incentive Program (OIP) and Solution Incentive Program (SIP)standard deals related to Routing and Core Switching sub-tracks. are entitled to this registered incentives. China is out-of scope for OIP/SIP kicker*** Lesser of 1% on Core Routing/Switching net bookings or 2% combined SEC/WLAN net bookings

11. Borderless Networks Kicker Core Bookings Security & Wireless Bookings Eligible Core Shipped Bookings * 1% Security + Wireless Shipped bookings * 2% Payout Rules: • Partner must meet VIP qualification rules in R/S, Security, and Wireless (minimum bookings, CSAT, Specialization, etc.) • Payout calculation: 2% of the combined Sec/Wireless shipped bookings not to exceed 1% of the R/S qualified shipped bookings calculation • Example: Partner A bookings $4M Core shipped bookings and $1M combined Security and Wireless. BN kicker $20K. • ($4M x 1% =$40k, $1M x 2% =$20K, lesser of which is $20K)

12. New VIP 14 Program Wireless Structure • Key Points: • All Borderless Networks Technologies have same payout • Standards of 15%, 10%, 5% • Wireless will have SAME payout as other technologies • Increased payouts for key WNBU strategies – ie: Unified / 802.11n

13. New VIP 14 Program Security Structure • Key Points: • All Borderless Networks Technologies have same payout • Standards of 15%, 10%, 5%

14. We are committed to help you deliver the Borderless Network Our customers need a Borderless Network. Cisco is aligning across all functions to partner with you to deliver it. • Our success depends on your success • R & S is huge portion of business. . .imagine opportunities . .added capabilities, intelligence • Cisco is ONLY company with a whole architecture

15. VIP 14 Program Rule - Collaboration 15 © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

16. VIP Collaboration Track *APAC only

17. Collaboration VIP14 Highlights Launch of new Telepresence VIP track within the Collaboration VIP program Alignment of UC VIP payout structure with broader VIP program: 21%/15%/10%/5% Continued reward for partners leading with advanced Collaboration sales CUWL & UCSS sku’s continuing to pay out at Category A level Introduction of the WebEx/ASR node into VIP at Category A level Elevating of UC Management Solutions to Category A Raising of all Cisco Unified Communication Manager 7.X SKU’s to Category A Removal of HP MCS Servers from VIP Lead with comparable IBM MCS platforms Updates to Cisco IP Phone VIP strategy Moving older model 7940, 7941, 7960 & 7961 IP phones to Category C Migrate customers w/ basic phone needs to the new 6900 series IP phones in Category B Lead with 7942/7945/7962/7965 model IP phones for customers with advanced IP phone requirements (Category B) Migration of the UCX, BE & UC500 VIP programs & technologies to Small Business Advantage & Commercial PDF programs

18. TelePresence VIP Program“Driving the Momentum” • 350 customers & 2,300 TelePresence rooms • Inter-carrier, intercompany solutions • More network options with Extended Reach • More applications with TelePresence Recording Studio • More room options with new multi-purpose CTS1300 • Tiered Rebate Structure • TelePresence end points and infrastructure included in new Category D (5%)* • New TelePresence Recording Server included in Category C (10%)* • 1% Kicker for Gold Partners • Requirement for authorization for TelePresence Channel Program *Master partner rebate incentives not applicable

19. Cisco PDF Pro Advanced & Commercial PDF Programs New simplified profitability programs for Cisco Small Business Pro & Commercial UC Solutions Increased payout frequency – quarterly payouts No customer satisfaction (CSAT) requirements Annual program enrollment PDF Pro Advanced Focus on Cisco Small Business Pro & UC500 offerings Eligible Partners: Express, Advanced & Master UC Specialized Partners w/ the SMB or Express Foundation Specializations 10% rebate across full Cisco Small Business Pro portfolio www.cisco.com/go/pdf Commercial PDF Migration of UCX & BE VIP programs to PDF program Separate tracks for Express UC Specialized and Cisco Authorized Business Edition Resellers Tiered rebate structure Foundation : 10% Advanced: 16% www.cisco.com/go/commercial-pdf

20. VIP14 Program Rule —Virtualization 20 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

21. VIP Virtualization Track *APAC only

22. New VIP 14 Program UCS Structure • Key Points: • VIP14 DC Payout appropriate to Cisco B-Series ONLY • DCUC-ATP Partners Only Eligible

23. New VIP 14 Program Data Center Structure • Key Points: • Nexus 2000 @ 10% Payout

24. VIP 13 vs. 14 Payout Structure Collaboration * Moved to PDF in FY10 ** New in VIP14

25. VIP 13 vs. 14 Payout Structure Borderless Networks Virtual-ization **New in VIP14. ^Only OIP/SIP standard deals are entitled.

26. VIP14 Program Rule —Multinational 26 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

27. VIP 14 Multinational Rules • Host and Satellites countries must be in APAC theatre. • VIP bookings be pooled across host & satellite countries only • VIP bookings will be added for each country in the “pool” and must meet the aggregate bookings targets • Partners cannot add additional satellite countriesafter enrollment window has closed for VIP period • Partners will not be eligible to earn VIP in satellitecountries if they lose the host country specialization • Partners can only enroll in either UC orMultinational UC subtrack • Partners can only enroll in either SEC orMultinational SEC subtrack

28. VIP 14 UC Multinational Partner- Example 1 • Partner XYZ has a Host in China and a satellite in HK but Advanced UC Spec in Korea and Vietnam. Partner has $100k bookings in China, $100k in Korea, $10k in Vietnam and $50k in HK. All bookings are Advanced UC bookings and can be pooled to meet minimum booking level of $125K.

29. VIP 14 UC Multinational Partner- Example 2 • Partner XYZ has a Host in India and Advanced UC Satellites in Singapore and Malaysia. Host enrolls as Multinational Master with selected Satellites which means booking targets will be pooled.

30. VIP14 Program Rule — CSAT 30 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

31. VIP 14 CSAT Changes One hybrid number, technology agnostic applicable to all the VIP tracks (for previous rolling 12 months) CSAT Score: 4.40 or higher CSAT Valid Responses Target *A valid response is a returned survey in which the end customer: - Agrees to evaluate the partner that sent the survey invitation - Rates the partner on overall customer presales satisfaction and post-sales satisfaction

32. VIP 14 Program Summary 32 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

33. FY’10 Program Rules, VIP 14 (APAC only) 6 month net bookings minimums Collaboration: UC $50K, TelePresence $100K Borderless Networks: Security $40K, Wireless LAN $30K, Routing and Switching N/A, WAN Opt $80K Virtualization: Data Center $200K, Storage $15K, Unified Computing $50K Customer Satisfaction (CSAT) Minimum Score—4.40 or higher Minimum survey responses required for Gold/Silver partners: 20 Minimum survey responses required for Premier partners: 10 All surveys are partner sourced Maintain Specialization throughout entire program period (Attainment—January 23, 2010) Base Payout Requirements

34. VIP 14 Timeline Program Period 14: July 26, 2009– January 23, 2010 Re-enrollment Required: For VIP 13 Partners Enrollment Windows (for new and existing partners): August 10—September 4, 2009 for Q1 & Q2 October 26—November 13, 2009 for Q2 only CSAT Survey Period: Start: January 27, 2009 End: January 23, 2010 Payout Dates: 1st check April 2010 (Shipment prior to February 12, 2010) 2nd check May 2010 (Shipment bet. February 12, 2010 and May 1, 2010) Partners and CAMs should use the VIP Tool to track enrollment status only: http://www.cisco.com/go/viptool

35. What does VIP 14 mean to Partners? With new subtracks added to VIP14, Partners have the opportunity to expand their incentive payments. VIP 14 allows Premier Partners to enroll in Borderless Networks: Routing and Switching sub tracks. VIP 14 allows Partners to earn more incremental payouts. E.g. Borderless Networks Kicker With CSAT Simplification, Partners only need to achieve one hybrid number across all tracks and its subtracks.

36. VIP Tool – How do I enroll? 36 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

37. VIP Program Enrollment Logon towww.cisco.com/go/viptool and these are the Six Simple steps to enroll in the VIP program with the VIP Tool 1 2 Click Apply On Line 3 Select the Country 4 5 Select the Track Accept Cisco Terms and Conditions 6 Complete the ApplicationContact, Pay-To, CSAT details Click Submit

38. VIP 14 Partner Program View, PPV 51 Presentation_ID © 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

39. Partner Program View (PPV) Partner Program View provides daily visibility to your progress to date in the current Value Incentive Program • Partner Program View will provide visibility to VIP 14 bookings on September 4 2009.

40. VIP 14 Support • Open a case on partner help online: www.ciscopartnerhelp.com • Select category “Programs” • Select subcategory “Value Incentive Program” • Click Submit • VIP URLs: • VIP home page: www.cisco.com/go/vip • VIP Tool: www.cisco.com/go/viptool • PPV Tool: https://apps.cisco.com/mbrre/saw.dll?Dashboard • PAL Tool: www.cisco.com/go/pal

41. VIP 14 Period Partner Call to Action • Be certain to enroll in VIP 14 • Work with your CAM to fully leverage training and enablement tools available from Cisco • Make architectures part of your daily sales practice • Celebrate success together