Financing Business Innovation Cisco Unified Data Center

1. Financing Business InnovationCisco Unified Data Center [Name] [Title]

2. Business and technologyimpacting the data centre Proliferationof devices Data deluge Cloud Energy efficiency Security andcompliance Budgetconstraints Business agility 24x7 Business Business challenges Technology trends

3. Today’s CIO challengeManaging growing demand for IT projects Unfunded project Unfunded project Unfunded project Unfunded project Funded newprojects Missed business opportunities Maintenance 70-80% IT budgets

4. Data center economics SERVER-RELATED SPEND (CapEx + OpEx) WW Spending on Servers, Power & Cooling,and Mgmt. / Administration OVERALL SPEND DISTRIBUTION HighOpEx IDC, 2011 Customer Spending ($B) Source: Gartner—Cisco IT, “Data Center Cost Portfolio” Source: IDC, “New Economic Model for the Datacenter”

5. Legacy infrastructure and management • Converging legacy infrastructure • Infrastructure not designed for easy integration • Layers of management software holding the system together • Complexity drives up management costs • Rigid models to upgrade and maintain system-level designs • Multiple tools and points of configuration Converged Infrastructure = Management Software Layers

6. The marketplace has changed how organisations acquire and consume their technology.More than ever, it’s critical that organisations have the financial flexibility to acquire and renew technology assets in line with their business strategy, while maintaining predictable budgets.

7. Greater business flexibility

8. Step Financing Pay less in the early stages of the Cisco Data Center implementation and ‘step up’ payments over time. • Allows better alignment of costs to business benefits. Customer Payments to Cisco 15 60 30 45 Time (Months) Committed Payments

9. Multi-Term Financing • Forgo the upfront purchase of server capacity that is not immediately required, and have the flexibility to refresh blades more frequently over time. • Accelerate the time to break-even on the data center investment. Customer Payments to Cisco 0 6 12 18 24 30 36..................................................................60 Time (Months) Committed Payments

10. Base capacity Pay As You Grow Ready-to-use, continuous replenishment, on-site inventory with payment deferral, payments financed Deferred invoice in arrears $ Buffer capacity $ demand $ $ Customer Payments to Cisco $ 0 6 12 18 24 30 36..................................................................60 Time (Months) Committed Payments

11. Flexible Demand A shared-risk consumption model for Cisco Unified Computing System with payments based on usage • Variable payments • billed monthly as used usage • Fixed payment • locked into • a lease/ loan Customer’s Payments to Cisco Baseline capacity Time (Duration of Contract)

12. Financing your data center innovation • We are a wholly-owned subsidiary of Cisco, specialising in providing flexible and innovative financing solutions for Cisco’s customers wherever they operate in the world: • Align payment to revenues • Avoid upfront set up costs • Achieve greater business flexibility through technology refresh, without increasing OpEx • Keep your technology assets off your balance sheet • For information about how we can help your data centre planning: • Email us at capital-emea-dc-queries@cisco.com • Or visit our website www.ciscocapital.com/emea