1. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 1 Shared Services in Government—Build a Platform for Better Public Services at Lower Cost

2. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 2 Agenda Market climate and drivers Human network for government Shared services Cisco’s approach for shared services Case studies Q and A Why Cisco?

3. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 3 Market Climate and Drivers

4. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 4 Market Insights Source: A.T. Kearney Survey on Shared Services Governments that adopt shared services initiatives realize at least 20-percent cost reductions and service improvements. Communication and collaboration technologies are key in achieving shared services benefits. Canada’s vision toward proactive collaboration and financial responsibility has established the baseline for other governments to pursue shared services. Governments are reinvesting shared services savings to improve constituent services.

5. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 5 Trends and Drivers  Fiscal pressures and difficulties in balancing budgets  New legislation and compliancy driving more transparency and accountability  Higher citizen expectations  IT consolidation  Intra- and inter-agency collaboration Source: A.T. Kearney Survey on Shared Services

6. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 6 Challenges to Improving Efficiency and Effectiveness  Consolidating and sharing resources  Overcoming implications of business transformation  Securing required funding/investments  Managing privacy and confidentiality directives Source: A.T. Kearney Survey on Shared Services

7. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 7 Human Network for Government Cisco’s Vision for How Governments Address Challenges

8. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 8 Cisco’s Vision: The Human Network for Government Networking businesses, citizens, agencies, and governments to provide interaction and collaboration between all parties to increase overall government effectiveness Increasing Public Safety and Security Empowering Constituents Improving Service Effectiveness Delivering Operational/ Cost Efficiencies

9. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 9 What Does the Human Network for Government Look Like?  Around the globe, communities and countries are using technology to become connected, improve services to citizens, and foster a pro-business climate.  Businesses and individuals are benefiting from the age of the Internet—an era in which information is readily available, systems and services are online, communications zip across the planet, and people have the potential to be more connected and productive than ever before.  Is your agency giving citizens choices about how they use your services? Are you taking advantage of the latest technologies to keep pace with their demands?

10. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 10 Culture Constituents Educational Institutions Government Administration Public Safety Transportation Healthcare The Human Network for Government Places Constituents at the Center Service Providers Small and Large Businesses

11. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 11 The Human Network for Government Means Interactive Communication and Collaboration Between All Government Constituents Delivering services to citizens, governments, and businesses when they need them, where they need them, and in the way they need them Extending services to more citizens and businesses with less cost Interacting with constituents Connecting people to people, locations to locations, and people and locations to information

12. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 12 Connected Government Is the Foundation for the Human Network for Government Cisco’s Connected Government embodies… A framework with services and tools that help you develop an end-to-end transformational investment plan A customized roadmap that enables you to progress through your transformation phases while taking advantage of your existing infrastructure investment Solutions/architectures that help you achieve key near- and long-term objectives

13. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 13 Mission: Improve information exchange (contracts, services, assets/inventory, suppliers) Mission: Improve operations in the near term Mission: Offer shared services between agencies or reduce operating expenses by outsourcing Operational Effectiveness and Efficiency Business Value Intra-Organizational Focus Interorganizational Focus Interagency Services Sharing and Information Sharing The Connected Government Roadmap Is the Path Toward the Human Network for Government

14. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 14 Survey the Benefits of Cisco’s Connected Government  All branches of government support the controlled flow of information.  Services reach constituents when they need them, where they need them, and in the way they need them.  Services reach more constituents with less cost.  Government is engaged with constituents.

15. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 15 Shared Services Is Paramount to Becoming a Connected Government  A recent survey by AT Kearney indicated that shared services is a common thread that connects worldwide government transformation objectives  “Currently in Berlin we have five networks for voice and data alongside one another. The cost of maintaining these networks has to be kept as low as possible. In future, with Cisco, we’ll have just one uniform network in Berlin, where voice, video and data communication are possible together.” –Konrad Kandziora, CEO of IDTZ

16. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 16 Cisco’s Connected Government framework enables governments to successfully implement shared services by provisioning a secure, future-proof communication and collaboration IT infrastructure platform. This platform enables governments to foster productive interaction and collaboration between governments, businesses, and citizens in a secure environment, while increasing overall government effectiveness. Shared Services

17. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 17 Cisco’s Strategy for Shared Services Shared services is the convergence and consolidation of government agencies functions to:  Realize cost efficiencies  Enable effective collaboration  Achieve a higher quality of service delivery to all government constituent

18. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 18 Integrated transport Integrated services Virtualized networking resources Stage 2Stage 3 Integrated applications Intelligent movement of data, voice, and video Stage 1 Deliver sustained, high-quality public services Consolidate resources and provide access to critical information Time Infrastructure Sharing Information Sharing Shared Services Business Value Create converged, unified network by standardizing and sharing resources Application- enabling services Shared Services Requires an Intelligent, Adaptive Network

19. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 19 Intelligent Information Network Cisco’s Service-Oriented Network Architecture (SONA) Delivers an Intelligent, Adaptive Network Business Applications Collaboration Applications Adaptive Management Services Networked Infrastructure Layer Middleware & Application Platforms Advanced Analytics and Decision Support Application Networking Services Infrastructure Services Places in the Network ServerStorageClients Networked Infrastructure Layer Campus ServerStorageClients BranchData Center Enterprise Edge WAN/MANTeleworker Adaptive Management Services Advanced Analytics and Decision Support Application Delivery Infrastructure Services Application-Oriented Networking Security Services Mobility Services Storage Services Voice & Collaboration Services Compute Services Identity Services Network Infrastructure Virtualization Infrastructure Management Services Management Services Virtualization Enable safe transport of radio, voice, and video communications PLM HCM CRM Procure- ment ERP SCM Instant Messaging IPCC Unified Messaging IP Phone Meeting Place Video Delivery Enables seamless, secure cross-agency collaboration Enables seamless, secure cross-agency collaboration Enable secure user and device mobility for access to resources Enables agencywide network foundation for delivery of applications and services Enable identification of devices and users at every layer of network Application Layer Collaboration Layer Interactive Services Area Enable secure, resilient information access across agency and partner locations

20. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 20 Benefits of Cisco’s Shared Services Approach Provisions a secure, future-proof communication and collaboration IT infrastructure platform  Enables you to foster productive interaction and collaboration among governments, businesses, and citizens  Increases overall government effectiveness Cisco’s SONA enables you to successfully implement shared services

21. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 21 Case Studies

22. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 22 Case Study: Austrian Federal Data Center The Challenge  Simplifying and standardizing all electronic file and record handling over a new dedicated, secure network  Positioning the Internet as the basis for quicker and more responsive administration The Solution  A new converged foundation network to connect all 12 ministries  Hosting servers and applications – 160 servers (e.g., ELAK— electronic filing system) The Benefits  Efficiency gains of 10% to 15% through an intelligent information network architecture  Track & Trace of workflow within the ministry (17.000 users online; 30 million document transactions annually)  ELAK has become a model for eGovernment in Europe See also notes

23. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 23 The Challenge  Increase competitiveness of local businesses  Extend the benefits of shared services to rural communities  Prove the value of local government investment in ICT The Solution  Wireless broadband technology brought to rural areas  Government broadband strategy transformed to a regional shared services strategy  Strategic value-case analysis quantified the forecast impact of technology (2M investment—139M NPV 6yrs) The Benefits  79 most underserved communities connected  41 municipalities provisioned with shared services and applications  Citizens and business brought closer to government Source: Cisco Systems (IBSG) Case Study: Brescia Shared Services Center (Italy)

24. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 24 The Challenge  Reduce operational costs  Provisioning 130,000 civil employees  Managing more than 125,000 voice ports  Managing 5000 servers from five data centers on one common architecture The Solution  Standardized on IP with Cisco technologies to bring different networks together to provide a seamless architecture for services such as security, mobility and quality of service The Benefits  Developed new business strategy and IT strategy  Implemented a customer ecosystem strategy group  Deployed enterprise IT architecture on basis of SONA Case Study: Dataport (Hamburg— Germany)

25. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 25 The Challenge  Improve citizen satisfaction  Replace and reduce multiple public networks  Create one portal and phone number The Solution  Developed and executed shared services center business plan The Benefits  Cost savings of €15.5 million over three years  Increased citizen satisfaction 100 percent  Improved transparency, branding, collaborative knowledge building, service innovation, and economic development Source: Cisco Systems (IBSG) Case Study: Government Portal of Catalonia (Spain)

26. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 26 The Challenge  Sweeping reforms to reduce government expenditure  Increasing secure data storage (e.g., police records)  Standardizing workflow processes (16,000 users) The Solution  Data center networking architecture deployed across two locations  MPLS WAN connecting 2200 locations  Multiple applications reliably stored in one physical infrastructure—Virtual Storage Area Network (VSAN) The Benefits  Increased scalability  Maximized data availability from statistical, financial, and tax management systems  Reduced operational costs and rapid ROI Case Study: izn (Germany) See also notes

27. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 27 Case Study: KIVBF (Germany) The Challenge  Improve application hosting, data storage, and network management  Serving 550 communities, 17 administrative districts, and 1200 public institutions (e.g., hospitals and schools)  Build a converged network to enable IP telephony The Solution  IP converged network, multiservice access, voice gateway, integrated services routers, and access switches  Unified Communications (e.g., 1250 IP phones at different locations and user groups) The Benefits  Reduced cost of ownership  Increased flexibility and scalability  Reduced internal voice costs by 80 percent

28. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 28 Why Cisco?

29. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 29 Citizens Intra and Inter Agencies Business Private Sector Other Governments Connected Government  Connecting People Empowering citizens to interact and collaborate on their terms with government  Connecting Businesses Enabling information and resource sharing between private sector and government  Connecting Governments Connecting the central government to local and municipal governments Enabling information and resource sharing across different governments  Connecting Ministries/Agencies Providing agencies the capability to share information and resources to achieve operational efficiencies and cost savings Cisco Connected Government Framework Supports Government Shared Services Initiatives

30. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 30  Unmatched technical expertise 22-year track record as industry leader in networking Decades of public sector expertise and best practices World-class engineers Extensive experience in scalable network design, operations, management, and support  Unrivaled partnerships  Unified spectrum of solutions, including security, communications, and mobility  Cisco ® Services  Cisco Capital finance programs  Extensive partner community Cisco Is Helping to Connect Governments Worldwide

31. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 31  The Bridge  The Connected Republic  Connected Government  Connected Health  Connected Cities  Connected Homes Cisco Internet Business Solutions Group: Industry Thought Leader for Shared Services

32. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 32 Improves communications with multichannel access toward government services Centralizes and standardizes with shared infrastructures and pooled resources Secures information exchange across organizational boundaries Enables collaboration across government entities with hosted Unified Communications services and agile collaboration tools How Does Cisco Help You Implement Shared Services? Infrastructure sharing Information sharing Information assurance Shared Unified Communications Services Become a Connected Government by using a framework that: Connected Government solutions enable:

33. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 33 Q and A

34. © 2007 Cisco Systems, Inc. All rights reserved.Cisco PublicPresentation_ID 34