rafael chacon regional sales manager 29 november 2012 · public sector “financing enabled us to...

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Rafael ChaconRegional Sales Manager29 November 2012


Alignment to Cisco’s StrategyAlignment to Cisco’s Strategy

Why Cisco Capital ExistsWhy Cisco Capital Exists

Customer & Partner PerspectiveCustomer & Partner Perspective


“ The Cisco Capital team has become a competitive game changer and secret weapon, accelerating deals and giving customers easier access to Cisco technology. ”

Frank Calderoni, Cisco CFO

“ Cisco Capital is a competitive advantage that will help us drive company growth and profitability, and demonstrate to our customers that we are a dependable, flexible business partner. ”

Gary Moore, Cisco COO “ Let’s be very direct:Cisco Capital has become an integral part of

allowing us to form very tight relationships with our partners and our customers. ”

John Chambers, Cisco CEO

“ We need to transact more of our business using Cisco Capital…this is where the market is going.

The sales force has got to learn that justrelying on CapEx in the future will not be a route to success.

The sales force will need to learn thatleveraging the benefit of Cisco Capital will be absolutely instrumental in our future success.

The market is moving from CapEx to OpEx. ”

Chris Dedicoat, Cisco EMEAR President

The marketplace has changed how organisations acquire and consume their technology.

More than ever, it’s critical that organisations have financial flexibility to acquire and renew technology assets in line with their business strategy, while maintaining predictable budgets.


Consumer confidence

Business confidence

Geo-political concerns

Inflationarypressures

Equity markets volatility

Inconsistent market

expansion

EU fiscal uncertainty

High unemployment

Inflation concerns

Ongoing recession


“How does your solutionaddress my concerns?”“How does your solutionaddress my concerns?”

“Why should I investin Cisco?”

“Why should I investin Cisco?”


2011 Gartner FEI Technology Study; CFO Publishing Survey 2011; 262 responses from senior finance executives at companies with 100+ employees

90% of CFOs approve their company’s IT budgets, with:

67% of them participating in vendor negotiations

65% of them actively reviewing IT-related contracts

72% of CFOs decide or approve specific technology vendors for their company

65% of CFOs spend 3+ hours per week on IT issues

90% of CFOs approve their company’s IT budgets, with:

67% of them participating in vendor negotiations

65% of them actively reviewing IT-related contracts

72% of CFOs decide or approve specific technology vendors for their company

65% of CFOs spend 3+ hours per week on IT issues

More IT organisations report to the CFO than to any other executive function or role

42% of IT organisations report to the CFO.

45% of organisations, the CFO leads the technology investment strategy

7% is the sole decision maker

38% leading a team that makes technology/ IT decisions

The CFO has potentially more clout in IT investment decisions than the CIO

26% of all IT investments the CFO alone authorises

51% when combined with the CIO

More IT organisations report to the CFO than to any other executive function or role

42% of IT organisations report to the CFO.

45% of organisations, the CFO leads the technology investment strategy

7% is the sole decision maker

38% leading a team that makes technology/ IT decisions

The CFO has potentially more clout in IT investment decisions than the CIO

26% of all IT investments the CFO alone authorises

51% when combined with the CIO


Off balance sheetOff balance sheet

ROIROI Revenue Revenue recognitionrecognition

Cash flowCash flow

DepreciationDepreciation

Profit and Profit and lossloss

ROEROE

Foreign Foreign currencycurrency

LeverageLeverageDebtDebt

Credit Credit ratingsratings

FundingFunding

AssetsAssets


• World-class information and communications technology solutions

• Unmatched IP expertise and innovation

• Comprehensive horizontal and vertical architectures

• Cisco Technical and Advanced Services

• Cutting-edge cloud-based services

• Trusted globalindustry leader

• Network as a platform for sustainable competitive advantage

• Aligned to business transformation imperatives

• Vertical expertise foroptimisation and scalability

• IT finance specialists aligned to CFO needs and business priorities• Partner to build financial business case: TCO and ROI• Innovative financing models and active technology lifecycle management• Strong financial resources and global/ partner relationships

Financial Decision Makers

Business Decision

Makers

Technical Decision Makers


Channel Financing

Credit lines and payment terms beyond the standard Cisco net 30 day terms

Technology Financing

Attractive, flexible financing options for Cisco technology solutions

Pre-Owned Equipment

Price competitive and trusted alternative when new Cisco is not an option


Technology Financing

New Customers per Quarter

Active InvoicesMaintained

Billion in Assets

Y/Y Bookings Growth FY12

Y/Y Funding GrowthFY12

EmployeesCountries O

ffered

Channel Financing

Pre-Owned Equipment


Transformational

MajorMajor

Named Partner

Non Named Partner

Customer Led

Partner Led


Stronger business caseStronger business case

Flexible end-of-lease optionsFlexible end-of-lease options

Lower cost of acquisitionLower cost of acquisition

Cost matched with arrival of benefitsCost matched with arrival of benefits

Rigorous financialsolutions

Rigorous financialsolutions

Attractive migration choicesAttractive migration choices

Optimisedlifecycle management

Optimisedlifecycle management

Less financial and operational riskLess financial and operational risk

Maximisedshareholdervalue

Maximisedshareholdervalue


Cisco Capital CustomersCisco Capital Customers


Cisco Capital PartnersCisco Capital Partners


Strength of theCisco balance

sheet

Integration across Cisco and Channelpartnercommunities

Embedded intoCisco architectural

roadmaps

End-to-end capabilities and solutions


External Case StudyService Provider

“We have the ability to start small and grow bigger. Also normally money costs money, but in this case we have 0% financing so we get the money for free.”

Jan BeenenCommercial Manager – Be Value

Customer Scenario•Be Value specialises in knowledge-based business process solutions across The Netherlands•It wanted to introduce IP telephony and upgrade network security without tying up valuable working capital

Cisco Capital Solution•A three-year, interest free leasing deal through the Cisco Capital easylease program

Cisco Capital Significance•Be Value rolled out its upgrade at its own pace •0% interest saved €10,000 compared with a bank loan at 6%•This has freed up IT budget for other purposes•Customer has the right Cisco platform with the ability to evolve and bring in technology that gives them flexibility in the future

Click here for more examples of how our customers are using financing from Cisco Capital

© 2012 Cisco Systems, Inc. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1009R)


External Case StudyPublic Sector


“Without Cisco Capital, we would have been looking at a much slower, phased deployment. This would have significantly delayed our plans for the delivery of cost savings and customer service improvements.”

Abdullah HassanIT Director – Department of

Economic Development

Customer Scenario•The Department of Economic Development (DED) is responsible for organising, regulating and boosting trade and industry throughout the United Emirates•Growth meant DED needed a more scalable, energy-efficient infrastructure with productivity enhancing solutions including IP telephony and video via a risk-sharing model that replaced CapEx with predictable monthly OpEx

Cisco Capital Solution•A custom finance solution from Cisco Capital with flexible options at the end of the contract, including continued rental, purchase and technology refresh

Cisco Capital Significance •Improved productivity and efficiency thanks to eGovernment services •Significant IT, travel and real estate savings •TCO reduction of approximately 5%




“Financing enabled us to consider bigger and better solutions, which will result in a projected saving of £15 million over 11 years.”

Mike RobertsIT Director – University of Warwick

Customer Scenario•The University of Warwick’s existing campus network was unable to support growth and academic collaboration with other institutions•It needed a way of preserving cash and closely matching funding to benefits

Cisco Capital Solution•Cisco Borderless Network Architecture, financed over five years with Cisco Capital

Cisco Capital Significance •The University can now use capital resources for longer-term programs rather than IT investment•Savings achieved due to competitive interest rates•VAT was paid upfront to save the University money•The solution will deliver significant IT savings going forward




External Case StudyEnterprise

“We already had a sound business case, but Cisco Capital helped to improve it further by reducing ROI down to three years.”

Gustau SerraCIO – Mediapro

Customer Scenario•Mediapro wanted to grow audiences and revenues by streaming GOL TV to the Internet while maximising profitability by not having to outsource content delivery•This meant upgrading its production centres in Madrid and Barcelona to support 10 Gbps speeds and virtualised and automated operations

Cisco Capital Solution•A Cisco Unified Computing System (UCS) and Nexus platform, acquired using a CapEx to OpEx solution with a three-year operating lease from Cisco Capital

Cisco Capital Significance • More than €300,000 in new revenues and €250,000 in annual savings• Spread project costs and improved cash flow management • Flexible options to buy, extend or refresh at the end of the term




External Case StudyCommercial

“Financing with Cisco Capital allowed us to speed return on investment. When you factor in IT efficiencies, call savings and productivity gains we expect the Cisco solution to pay for itself within two years.”

René ColléDirector Finance and ICT–Monuta

Customer Scenario•Monuta, the Dutch funeral and financial services provider needed a new phone system with integrated presence technology that would deliver a fast return on investment and minimal impact on cash flow

Cisco Capital Solution•Cisco Capital easylease, covering Cisco hardware, software and support services, with 36 monthly interest free payments

Cisco Capital Significance •Removed need for upfront capital investment•Monuta conserved capital, protected credit lines and improved cash flow management•We have eliminated the risk of late payments and delays to equipment deliveries•Complete solution is expected to pay for itself within two years





“We wanted to be able to implement a complete solution that would make a difference from day one, rather than a series of discreet projects that would only deliver benefits incrementally over time.”

Gianni OriggiCIO – Niguarda Hospital

Customer Scenario•This leading Italian hospital wanted to transform medical services, clinical effectiveness and the quality of patient care to combat budget challenges and competition from private companies

Cisco Capital Solution•Cisco Medical-Grade Network connects over 70 buildings and 200 clinics with information, mobility services, unified communications and medical applications•Cisco Capital financing spread project costs over 60 months (title ownership of all assets transfer to the hospital in strict accordance with European procurement guidelines)

Cisco Capital Significance •Payback designed to happen within three years, which will improve cash flow management and reduce risk •Access to innovative healthcare technology such as mobilising people and knowledge, increasing productivity, seeing, diagnosing and treating more patients earlier and faster, has been accelerated





“Working with Cisco Capital we were immediately on the same page. The various models they produced helped us to develop our thinking, validate the cost benefit analysis and ensure the right commercial framework.”

Gonçalo SantosFinancial Director – AR Telecom

Customer Scenario•AR Telecom wanted to deploy triple play services to attract and retain customers in Portugal while effectively mitigating commercial and technological risks

Cisco Capital Solution•A 36-month financing solution with options to continue leasing, refresh the technology, or buy it outright

Cisco Capital Significance•Our solution meant no upfront investment was needed, costs could be spread, ROI was improved and cash flow targets were protected•AR Telecom enjoyed a lower interest rate while preserving existing credit lines•Flexible options mitigated risk and allowed AR Telecom to remain innovative and competitive





“Cisco Capital helped us to put together a financing solution that released the deadlock in our negotiations with the customer. Their involvement made the difference that closed this very important deal.”

Jonny LindKey Account Manager – TeliaSonera

Customer Scenario•TeliaSonera, a leading telecommunications provider in the Nordic and Baltic regions, was managing the wide area network for the Swedish government-owned healthcare organisation•The WAN contract was due to expire, but negotiations had stalled due to pricing issues

Cisco Capital Solution•Cost-effective and flexible three-year financing contract with an option to buy at the end of the term

Cisco Capital Significance•Reduced costs helped TeliaSonera create a more attractive offer and close this important deal•TeliaSonera was able to retain one contract and win another, strengthening its position in the customer account•Created a new co-operative model that is now used for financing all TeliaSonera’s managed LAN and WAN services based on Cisco solutions



rafael chacon regional sales manager 29 november 2012 · public sector “financing enabled us to...

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