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James Macaulay

Director

How the CDO enables Cisco to deliver new value to customers in a digital world

Cisco Digitization Office

Disruption Demands Business Model Innovation

Cost Value Experience Value Platform Value$

*Disruption = Substantial change in market share among incumbents

Nearly

40%market incumbents

displaced

3years

expected time to

disruption*

… and Operating Model Reinvention Every 18-24 Mos.

Network

Data Center – IoT Infrastructure – Cloud

Orchestration – Data & Analytics

Collaboration – IoT Apps – Security

New Customer Value

Te

chn

olo

gy F

ou

nd

atio

nB

usin

ess E

nab

lers Partner

Ecosystem

Business

Processes

Physical

Assets

Culture &

Talent Offerings

The CDO Role at Cisco

Business Model Innovation

Operating Model Reinvention

EXECUTION

RELATIONSHIPS

CULTURE

CRITICALTHINKING

KellyKramer

Chief FinanceOfficer

JoeCozzolino

SVP, Services

ChrisDedicoat

SVP, WorldwideSales

Kevin Bandy

Chief DigitalOfficer

FrancineKatsoudas

Chief PeopleOfficer

Dr. Ruba Borno

VP GrowthInitiatives &Chief of Staff

Karen Walker

Chief MarketingOfficer

HiltonRomanski

Chief Strategy Officer

Biri Singh

Chief TechnologyOfficer

PankajPatel

Chief DevelopmentOfficer

CHUCKROBBINS

CEO

VISIONAUTHENTICITYEXECUTION

TEAM RESULTS

TRUST

OPERATIONALEXCELLENCE

DIGITIZATIONPASSION

DISRUPTION

TECHNOLOGY

INNOVATION

Cross-FunctionalInterlock

Mark Chandler

SVP & GeneralCounsel

RebeccaJacoby

SVP, Operations

Reimagine Value

for Our Customers

Reimagine Work

at Cisco

Stages of Digitization

Differentiate

New User Experiences, Products, Services

Accelerated Product, Services, and Business Process Innovation

Distributed Connectivityand Intelligence

2.0

Redefine

Business Model Innovation / Industry Transformation

Machine 2 Machine / Augmented Decisions /Self Learning Analytics

New Growth andConstant Innovation

Enable

IT Agility and Increased Productivity

Reduced Tech Costs(Opex and Capex)

Faster Response Timesto Customer Needs

7 Standard Customer-facing Business Models

Consumption Options Fuel Customer Business Outcomes

On-premise Hardware +

Features

1 Perpetual Software (with

Annuity)

Subscription Software

2

3

Software as a Service

Managed Services / Services as a

Service

4

5

Hybrid (SaaS, HW, SW, Services)

Embedded Solutions (SaaS, HW, SW,

Services)

6

7

Our Approach to Building the New Operating Model

SecuritySimplification AutomationMonitor &

AdaptContinuous Innovation

Articulating Digitization Roadmap for Customers

The Market Is Recognizing Our Momentum

“Cisco jumps after forecast signals success in

business shift.”

“Cisco profit margin outlook bullish as business

model shifts.”

“The company had incredible earnings and

investors were thrilled… with deferred product

revenue up 9% driven largely by subscription-

based and software revenue.”

“Cisco is continuing to move in the right direction

highlighted by solid margin performance and

improving business mix.”

“Cisco continues to execute a multiyear

shift to a software-centric, subscription

business model.”

Revenue

3%

Earnings Per Share

6%

Software & Recurring

Subscription Business

36%

Lessons Learned