1. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 1 Managed Services Channel Program Next Generation WW Channels August 2010

2. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 2 Why Managed Services? Global IT spending growth = 5.1% CAGR Global Manages services spending growth = 25% CAGR Businesses Environment Cisco Partners Managing Expenses; CapEx => OpEx Employee Productivity Customer Satisfaction Technology Leverage, Risk Economy forcing alternatives Power requirements X as a service culture Virtual vs. in-person acceptance Seeking New, high value, recurring revenue Innovative service delivery models Integrated on-demand services Accelerated time to value Managed Services $68B >16% CAGR (2013)

3. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 3 Market Landscape By 2013, Hosted UC will represent 30%+ of Ciscos addressable UC market. Major global telcos…leveraging formidable existing centralized computing and network management assets. 20% of companies will no longer run ICT equipment in-house 3 years from now. …Changing Customer demands: In 2–5 years 40 % of business customers will buy ICT from the cloud.

4. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 4 Why Managed and Cloud Services Managed/Cloud Services $217B 15% CAGR (2014)* BusinessEnvironmentCisco Partners Power needs X as a service culture Virtual vs. in- person acceptance Social Networking Generation New, high value, recurring revenue Innovative service delivery models Integrated on- demand services Accelerated time to value Economy Forcing Alternatives ManagingSeeking Globalization CapEx vs. OpEx Technology risk User experience * Forrester Research, Jan 2010: Cisco commissioned research on Global Managed Services Opportunity

5. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 5 What is Cloud? PaaS SaaS IaaS Source: Cisco IBSG Cloud Computing (Public Cloud) Anywhere, Anyone, Any Service IT Resources and Services that are abstracted from the underlying infrastructure and provided On Demand and At Scale in a multitenant and elastic environment

6. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 6 Consumption Models Evolve with Technology New Rules. New Game Next Generation Data Center Cisco Customer Premise Equipment CPE-based Services Hosted Collaboration Solutions IaaS (Compute, Network, Storage) SaaS CPE Managed & Cloud Services Delivery Platform Consumption Model DedicatedOn-Demand Managed Services Classic Resale

7. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 7 Technology sold to customer by partner Maintenance Services may be included Technology or XaaS sold or leased to customer by partner Proactive Monitoring and Management from partners Network Operations Center (NOC) as outlined in Service Level Agreement Technology sold or leased to customer by partner Long term contract including physical assets and human resources The Cisco Managed Services Channel Program is one of three offer types in Ciscos Channel Partner Program. Managed Services Channel Program Tailored to reward partners who deliver Cisco technologies as a managed or cloud service. ResaleManaged ServicesOutsourcing

8. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 8 Certified staff and processes Proactive SLA with the end customer Tiered NOC requirements Discounts Managed Services Channel Program Framework Rewards Requirements Branding Financial Rewards Escalating Discounts, Rebates, Incentives Marketing Rewards Envision, Build, Market and Sell Master logo Cisco Powered logo Audited at top two levels of the program White labeling opportunity across all levels

9. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 9 Information Technologies Delivered as a Cloud or Finished Solution, Managed Remotely by Highly Skilled Professionals from a Network Operation Center (NOC) Managed Services Are Proactively Monitored and Providers Can Troubleshoot Incidents from the NOC, According to Defined Service Level Agreements (SLAs) Negotiated with End Users Managed Services are often Offered on an Operating Expense Basis That Requires No Capital Outlay for the End User Customer Qualifying MSCP transactions must meet the following: SLA with terms > than 12 months between partner and end user customer SLA must define service obligations Customer equipment must be proactively monitored from the partners NOC Define Managed Services How does Cisco define Managed Services?

10. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 10 Three levels with graduated benefits and requirements based on depth of capabilities: Managed Services Advanced Managed Services Express I Eligible to apply for Cisco Powered Managed Services I Cisco MSCP criteria based on major industry framework: Information Technology Infrastructure Library (ITIL ® ) Cisco conducts independent third-party audits of partner NOC procedures and capabilities Annual renewal Program Structure How is MSCP Structured?

11. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 11 All products covered by an end user SLA Point of Sale Reporting Direct Cisco Contract or valid ICPA Subject ATP or Specialization required for any restricted products Cisco-based MS offers = 2 SLA and references ITIL¹ = 1 CCIE² = 2 Premium ITIL processes and defined SLA reports and metrics Cisco-based MS offers = 2 SLA and references ITIL¹ = 1 CCNP² = 2 Basic ITIL processes and defined SLA reports and metrics Cisco-based MS offers = 1 SLA and references ITIL¹ = 1 CCNA² = 2 Allow white label collaboration with Master or Advanced MSCP partner NOC Audit Levels Express Advanced 1 = an individual with an ITIL Foundation certificate (version 2.0 or later) 2 = highly recommended that one individual be certified in SP Operations Program Requirements What are the program requirements? NOC Requirements Certified Personnel Common Requirements Service Offerings

12. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 12 Graduated discounts by program level for products on the Global Price List* *Restricted products still require corresponding qualifications New Master Managed Services logo and Cisco Powered Managed Services Get access to resources to help you envision, build, market, and sell your services Connect with the members of the Managed Service Community What are the Program Benefits? Managed Services CommunityBranding and RecognitionProduct Discounts

13. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 13 Accelerate Your Managed Services Success Target most profitable services Engage in strategic planning Quantify business impact and align with goals Envision Increase staff expertise and optimize network Reduce risks and costs Facilitate highest standard of service delivery Build Increase demand for services and expand market share Connect customers faster Accelerate time-to-revenue Market & Sell

14. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 14 Managed/Cloud Services Community Benefits for Partners at Two Levels Case studies * Envision (Service Creation) resource kits Business analysis tools Best practice resources Custom managed service market research Market intelligence update Marketing benchmarking studies Partner Practice Builder NEW Managed/Cloud Services Insight Group Subscription NEW Cisco brands * Co-branded press release * Cisco Live Partner Pavilion * Cisco Partner Summit NEW * Partner Space Sales and marketing toolkits Vertical industry resources Go to market DG plays NEW Sales training Educational webcast series Campaign Builder NEW Partner Marketing Central NEW Online technology practice labs * Networkers @ Cisco Live benefits * CCIE support * Service designation architectures Technical whitepapers and best practices Technical training courses 200+ Educational webcast series EnvisionBuild Market and Sell Managed Services Insight

15. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 15 MSCP Benefits Portal Convenient access to all the tools you need Find the benefits you need, delivered the way you need them Go to: http://www.cisco.com/web/partners/pr11/mscp/benefits/index.htmlhttp://www.cisco.com/web/partners/pr11/mscp/benefits/index.html Consolidated info available by business role: Business Owner, Product Manager, Network Engineer, etc.

16. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 16 Managed/Cloud Services Insight Group Thought Leadership on Managed/Cloud Services Subscribers can include: All Partner types: MSPs, VARs, SIs, Distis, etc. All Individuals interested in hearing the latest on managed and cloud services Thought Leadership Features: Market perspectives, trends, & analysis Webcats, podcasts, white papers, and more Requirement: Interest in Managed/Cloud Services No cost No special membership No designations/certifications Automatic subscription for: Cisco Powered Program/MS Community Members MSCP Partners

17. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 17 Partner Practice Builder Build a customized action plan for your services Build a customized action plan for your service. Evaluate and prepare all aspects of your business for services roll-out.

18. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 18 Global Coverage MSCP grants certification rights globally for all countries registered in our Partner database MSCP allows two types of Partner- to-Partner (P2P) collaboration: Requires a legal business presence and signed ICPA in each region Global Partner Network: Extends your geographic reach to support multinational customers White Label (WL) Extends remote monitoring capabilities How does MSCP address the global nature of Managed Services?

19. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 19 Yes: Deal Standard Authorizations (DSAs) Technology Migration Program (TMP) Opportunity Incentive Program (OIP) Solution Incentive Program (SIP) Trade In Accelerator (TAP) Special promotions & incentives as outlined in the promo terms and conditions No: Value Incentive Program (VIP) Program Combinations Can MSCP be combined with other Cisco programs? Program combinations does not imply direct discount stacking. See program details for applicability of program combinations.

20. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 20 2.Partner accesses the Certification and Specialization Application (CSApp) website. 3.Partner completes online application and agrees to the program terms and conditions. 4.Certification Program Manager notified of partner application submission. 5.Certification Program Manager reviews application and responds to partner within 5 business days of submission. 6.Certification Program Manager authorizes audit. Partner information is sent to third-party auditing firm. 7.Auditing firm contacts partner and account team to schedule audit. 8.Onsite audit occurs. 9.Auditor provides audit summary including actionable items to partner within 24 hours of audit completion. 10.Auditor submits full audit report to Certification Program Manager within 5 business days of audit completion. 11.Auditor report is reviewed by Certification Program Manager within 20 days of receipt. Confirms actionable items have been completed. 12.After action items addressed (if applicable) Certification Program Manager sends approval notification to partner. Assess Apply Audit Approve Partner Application Enrollment Process 1.Partner to work with account team to determine if MSCP fits their business model. 1 2 3 4 5 6 7 8 9 10 11 12

21. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 21 Contact your local CAM or AM for more information Resources Register as a Cisco channel partner www.cisco.com/go/partnerregistration www.cisco.com/go/partnerregistration Explore MSCP documentation www.cisco.com/go/mscp www.cisco.com/go/mscp MSCP Onboarding Kit MSCP Benefits MSCP At-a-Glance Prequalification Worksheets Program Questions & Answers (QA) Partner to Partner Collaboration At-a-Glance Read the detailed audit requirements and program policies www.cisco.com/go/audit www.cisco.com/go/audit Apply for MSCP www.cisco.com/go/csapp www.cisco.com/go/csapp MSCP Host/Agent www.cisco.com/go/hostagent www.cisco.com/go/hostagent What resources are available?

22. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 22

23. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 23 Cisco Powered Services for Master and Advanced Managed Services Partners MPLS VPN TelePresence Network Connection Internet Service IP Trunking Metro Ethernet Unified Threat Management Firewall Intrusion Prevention/ Detection Payment Card Industry First Mile Wireless Application Performance Management Data Center Interconnect WAAS Private Cloud (IaaS) Business Comms. HCS (UCaaS) Unified Contact Center TelePresence Cisco Powered Managed Services Reflects capabilities in a particular technology Managed Services Master Reflects greatest depth of partner expertise

24. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 24 Host Benefits Own customer relationship Deliver in remote location without incremental investment Manage end-to-end deal globally Agent Benefits Incremental revenue opportunity Leverage existing local process Provide proven capability at destination Mutual Benefits Maximize customer opportunity Faster adoption of new technology Global deal deployment Managed Services Channel Program Global Partner Network (Host-Agent) Extend Your Global Footprint Collaborate with other qualified Cisco partners to support customers in remote locations. Managed Services Host requirements: Managed Services-Master approved partner, including audited NOC Select qualified Agent(s) to deliver your solution in remote locations Negotiate terms and conditions with Customer and Agent Manage the entire transaction Managed Services Agent requirements: Premier resale certified, or above, in the landed country Specializations and/or ATPs to purchase restricted access products in landed country Signed agent terms and conditions If Cisco Services are attached, agent is required to use Cisco Branded Resale Services unless agent is a Service Alliance Partner or if Next Business Day delivery is unavailable.

25. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 25 NOC Delivery Model With Partner to Partner Managed Service White Label Producer will be responsible for Service Activation, Incident, Problem, Change, and Configuration Management, Customer Engineer White Label Marketer will provide Customer Relationship Management and Operational support Relationship Management during Activation, Customer Management, Regular Stewardship, Account Management Monitoring Incident resolution Problem Management Patch Management Elective Changes Application Scripting Customer CRM Operational and Business issues Technical issues via platform Stewardship and Escalations Partner White Label Producer CE

26. © 2009 Cisco Systems, Inc. All rights reserved.Cisco Confidential 26 Producer Benefits Scale Incremental revenue from distributed sales force Marketer Benefits Extend capabilities to address customer needs Own customer relationship Mutual Benefits Maximize customer opportunity Faster adoption of new technology Global deal deployment Managed Services Channel Program Partner Collaboration White Labeling Extend Your Capabilities The Producer - develops and delivers a managed service, is responsible for the NOC management, monitoring and trouble resolution of the service. The Marketer - re-brands and sells the service as if its their own, is responsible for managing all aspects of the customer relationship (CRM) as defined by the end user contract and Service Level agreement (SLA) White Label Marketers at the Managed Services-Express level must: Have a NOC, or contract NOC services with a qualified provider Provide all customer relationship management Have 2 full time CCNA's Have 1 full time ITIL® Foundation trained employee Have at least one Cisco-based service offering Have a Cisco White Label Addendum and a contract with the Producer White Label Producers must: Be an approved Managed Services-Advanced or -Master partner Have a Cisco White Label Addendum and a contract with the Marketer