Reimagining Customer Value in a Digital World

Digital TransformationJourney

Clayton Pyneclpyne@cisco.com

@claytonpyne

Approved

Big Short “Moment”

Digital Disruption Will Reshape Markets and Industries

Market incumbents displaced 40%

Companies actively responding1 in 4

Expected time to disruption*3 YEARS

From Products to Platforms

Source: How Plaforms are Reshaping Strategy, Harvard Business Review (April, 2016)

2015: 92% of global profits

2007: 90% of the industry’s global profits

“Platforms Beat Products Every Time”Marshall Van Alstyne, MIT Initiative on the Digital Economy

Source: Platform Economy, Accenture (2016)

Powerful Platform Ecosystems In Every Industry

Source: Platform Economy, Accenture (2016)

By 2018, IDC predicts that more than 50 percent of large enterprises—and more than 80 percent of enterprises with advanced digital transformation strategies—will create and/or partner with industry platforms

New Rules of Platform Strategy

Everything As A Service

Developer As Kingmaker

Architecture & API Strategy

User Experience

Data As Competitive Advantage

Source: How Plaforms are Reshaping Strategy, Harvard Business Review (April, 2016)

2

1

3

From resource control to resource orchestration

From internal optimisation to external interaction

From a focus on customer value to a focus on ecosystem value

Technology Foundation

Organic Innovation: The Digital Process at Cisco

Simplification Cloud Analytics Experience

IT as a ServiceOperating Model

Extend ACI, Hybrid Cloud

Data as Differentiation

Customer Success

Security

Enable New Business Models

Security Everywhere

OPERATING MODELAS A SERVICE

Data CenterGlobal network foundation | Cisco products plus select vendors | Flexible physical environments suited for growth

CiscoProducts

EMC/NetApp

GlobalFacilities

IaaSCatalyst of Service Architecture | Simplified Infrastructure Provisioning | Programmable & Policy Based

CiscoUCS

CiscoUC&V

CiscoSecurity

CiscoNetwork

PaaSOrchestration Foundation | Automation | Open and API Driven | Removed 83% Cost Structure

Cisco NSO

DaaSAnalytics | Visualization | Virtualization | Data Catalog of Services | Role Based Access

CiscoComposite

Cisco Tetration

CDaaSDigitizing Planning to Release Process | Continuous Delivery Toolchain | 80% Agile – 20% Waterfall

Cloud NativeERP Collaboration/Spark

APPaaSMobile | Web | MachineApplication Centric Infrastructure | Reduced Apps by 48%

IOE/Policy SaaS

Improved user experience drives growth | Increased data center utilizationIaaS simplification cascades to the data center | PaaS efficiencies reduce data center complexity, power, and costs.

Standardized PaaS bundles drive infrastructure efficiency | Containers help dynamically adjust load

Better data on utilization trends foster better decisions for ongoing data center deployment, growth, and consolidation

Better data provides guidance as to where/when to more effectively deploy infrastructure

Data insights helped us avoid an unnecessary $20 million retrofit project

Continuous delivery and insight stabilizes planning | further infrastructure efficiencies drive DC efficiencies

CDaaS templating requires fewer environment types, optimizing infrastructure even further

CDaaS refines control for streamlined development, staging, and production environments

CDaaS toolchain templates provide clearer understanding of release automation process

Cascading efficiencies from higher services continue to drive data center efficiencies

APPaaS efficiencies cascade, freeing resources and optimizing infrastructure

APPaaS efficiencies free platform resources

Optimization of data types clarifies insight

Application reductions streamline continuous delivery

Security

SECURITYEVERYWHERE

Malicious Code Launches

User Clicks a Link or Malvertising

RansomwarePayload

MaliciousInfrastructure

Umbrella Next-gen Firewall AMP Stealthwatch

Umbrella blocks the request

NGFW blocks the connection

Web Security / Email Security block the file

AMP for Endpoint blocks the file and

communication back to home

Umbrella blocks the request

NGFW blocks the connection

Stealthwatch and SLN detect the activity

How Cisco Protects Customers

“We rolled out OpenDNS so quickly that our internal clients didn’t even notice.”

Cisco IT Case Study

“The deployment was as simple as adding four lines of code to the DNS config file on our internal DNS servers.”

Cisco on Cisco Security

HYBRID CLOUDAdoption & Optimization

Cloud Adoption: IT World Becoming Hybrid

Currently UsingPublic Cloud 34% 73% 83% 90% 92%

Private Cloud 35% 75% 88% 93% 95%

Lower Maturity

Greater Maturity

Source: IDC InfoBrief, sponsored by Cisco, Cloud Going Mainstream. All Are Trying, Some Are Benefiting; Few Are Maximizing Value. September 2016

28% 19% 17% 11% 3%

Network / L4-7 Compute Security

1Modernize Infrastructure:Open and Programmable

Data Center

3 Build Your Private Cloud

Private Cloud Stack

Integrated Infrastructure

Hybrid PublicPrivate4 Choose Any Cloud

Self-Service Portal(IT as a Service)6 Extend

Policy Model7Move Data and Workloads Securely5

Edge: Push Policy Model 8

Security Everywhere9

Analytics Everywhere10

Storage

Policy2 Automate and Simplify

Cisco’s Policy-Driven Hybrid Cloud Model

Enhancing Bi-Modal IT with ACI and CloudCenter

ACI, UCS, UCSD = Mode 1 Public Cloud = Mode 2

Stability With on Premises Model 1. Agility with Public Model 2.

Manufacturing IT Department Recent Acquired Company

Marketing Department

GreaterBusiness Agility

Lower CapitalExpenses

Reduced Costs/Complexity

LowerOperating Cost

Resource Optimization

Cisco on Cisco ACI

58% 25% 21% 45% 10–20%Reduce Network

ProvisioningCAPEX

ReductionReduce

Management CostsReduce Power and

Cooling CostsCompute and Storage

Optimization

Digital Transformation Principles

ENABLENew Business Models

SIMPLIFYEverything As A Service

BUILDHybrid Cloud, Loosely Coupled, MicroservicesDELIVER

Data as Basis For Competitive Advantage DRIVE

Speed, Continuous Delivery, DevOps

SECUREEverywhere