1. 1 © 2003 Cisco Systems, Inc. All rights reserved. Session Number Presentation_ID 3Q05 Programs: SMB Partner Easy Discount (SPED) SMB Icebreaker Siddarth Bijlani US Distribution Product Marketing & Operations March 30, 2005

2. 222 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID What is the SPED Program? SPED is a 2 tier discount program that provides qualifying partners with significant incremental discounts on select Catalyst 2950 switches and select security and wireless products The objective of SPED is to offer even more attractive pricing on selected Catalyst 2950, security and wireless products targeted at SMB customers SPED is tailored towards partners who are focused on selling in the SMB market SPED will run through Cisco’s fiscal third quarter; i.e., until April 30, 2005

3. 333 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID SKUs included in the SPED Program The following is a list of switching SKUs eligible for the additional discount under the SPED program: WS-C2950-24 WS-C2950T-24 WS-C2950T-48-SI WS-C2950SX-24 WS-C2950SX-48-SI These are all Low End Switches targeted at the SMB Market SPED will provide expected incremental discounts to partners on the SKUs listed above

4. 444 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID SKUs included in the SPED Program Wireless: AIR-AP1120B-A-K9 AIR-AP1121G-A-K9 AIR-AP1220B-A-K9 AIR-AP1230B-A-K9 AIR-AP1231G-A-K9 Security: PIX-501-50-BUN-K9 PIX-501-BUN-K9 PIX-501-UL-BUN-K9 PIX-506E-BUN-K9 PIX-515E-R-BUN PIX-515E-R-DMZ-BUN PIX-515E-UR-FE-BUN The following Wireless and Security SKUs are eligible for additional discount under the SPED program.

5. 555 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID SPED Mechanism Reseller Distributor Step 3 – Cisco pays total rebates claimed, and conducts a monthly audit to govern program SPED will be set up under DART, with a re-usable DART ID issued for this program –Minimal manual intervention in the approval process allows for quick approval of deals –Quick approval process will increase use among registered, non- certified partners Program Mgmt Step 2 – Distis set up blanket discount in their systems for selected SKUs. Partners get discounted price automatically Step 1 – Program Governance team issues re-usable DART ID for the discount on this program

6. 666 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Key Criteria for using the SPED Program Standard Ts & Cs will apply to the SPED program + the following: 1.Only Cisco registered partners and above are eligible to take advantage of the SPED program 2.Incremental discounts on eligible products are capped 3.This program cannot be used in conjunction with any other program

7. 777 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID SPED 100 Word Description Cisco is pleased to announce the launch of the SMB Partner Easy Discount (SPED) program. SPED is a new program designed to offer registered partners discounts on select Cisco Catalyst Intelligent Switching products belonging to the 2950 series of products, as well as selected security and wireless products. SPED is available for a limited time and will run through April 2005. SPED offers significant discounts off GPL to registered partners on these products. These discounts and the speedy approval process make it easier for registered Cisco partners to compete more effectively against key commercial competitors and to win business in the SMB space. Partners who are not currently registered can do so quickly and easily at the following URL:http://www.cisco.com/en/US/partners/index.html

8. 8 © 2003 Cisco Systems, Inc. All rights reserved. Session Number Presentation_ID SMB Icebreaker Program

9. 999 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Introducing SMB Icebreaker Key Program features include: Discounts available for selling to customers of 250 employees and below under specific conditions. Offers up to an expected 57% off GPL to partners selling to non- Cisco LAN switching accounts Selected Cisco Catalyst Intelligent Switching include 2950, 3550, 3750 and selected 4500 series products. Commercial Icebreaker has replaced Flip the Switch Program and New Accounts Program. SMB Icebreaker is a new program designed to offer partners significant discounts on select Cisco Catalyst Intelligent Switching products; thus enabling partners to compete more effectively against key commercial market competitors at attractive margins.

10. 10 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Icebreaker—New Customer Program OFFERING Catalyst Intelligent Switching: 2940, 2950, 2970, 3550, 3550, 3750 and selected 4500 series products. Significant discount off list Maximum deal size is $50,000 FOR COMPANIES <250 EMPLOYEES Cisco must be in direct competition with commercial market switch competitors; i.e., HP, 3Com, Dell, D-link, Nortel, Extreme, Enterasys, Netgear, Allied Telesyn Available only through a US Cisco Authorized Distributor www.cisco.com/go/smbicebreaker

11. 11 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Key Program Highlights Program NameSMB Icebreaker ReplacingFlip the Switch & New Accounts Launch Date/End DateDecember 15, 2005 / July 27, 2005 Products Selected Catalyst Intelligent Switching products from 2950, 3550, 3560, 3750 and 4500 series products Max Deal Size$50K GPL Min Deal Size1 Unit Flexible Discount StructureUp to an expected 57% off to partners Discount TypeFixed Market SegmentRestricted to 250 employees and below Applicable PartnersRegistered, SMB Select, Premier, Silver & Gold Approval ProcessPartner to CAM, CAM to MCO, MCO to Central Approver Additional Guidelines1. Competitive pressures Summary2. Discounted Switching technology cannot exist in network 3. End user name and competitor name required

12. 12 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Approval Process Customer Reseller Partner Channel Account Manager (CAM) Approval 1: MCO Approval 2: US Distribution Prod. Marketing

13. 13 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Detailed Program T&Cs Promotional incentive (discount) is available for a single order purchase per end-user not to exceed the program limit Any K-12, public or private, qualifies regardless of number of students or size of network. Individual schools must be named as opposed to regional buyer; e.g., LA Unified being quoted as end user would not qualify Customer must have less than 250 employees, including corporate headquarters and branch offices Cisco must be in direct competition with commercial market switch competitors such as HP, 3Com, Dell, D-link, Nortel, Extreme, Enterasys, Netgear, and Allied Telesyn All of the following criteria must be met to qualify:

14. 14 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Detailed Program T&Cs This promotion applies to new Cisco switching accounts only. For Cisco existing Switching accounts, use CTMP. Unless the end-user has competitive edge and Cisco core, program can be used to upgrade edge only. Unless the end user has competitive core and Cisco edge, program can be used to upgrade core only Competitive Switches must be managed The total number of GBICs can NOT exceed the total number of GBIC uplink ports for the qualifying switches on each approved deviation All of the following criteria must be met to qualify:

15. 15 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID Detailed Program T&Cs Federal, State, and Local government accounts do NOT qualify. Please use State, Local Government and Education OIP program. Community Colleges and Universities do NOT qualify DVARs MUST take advantage of this promotion through the distributor of their choice and are NOT authorized to take advantage of this promotion through direct purchases with Cisco Competitor(s), competitor's switch model number(s), and price MUST BE ENTERED IN THE NOTES FIELD. All of the following criteria must be met to qualify:

16. 16 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID SPED vs. Icebreaker SPED ProgramSMB Icebreaker ProductsSelect 2950 products, wireless products and security products Select Switching products, including 2950, 3550, 3750 & 4500 Discount LevelIncremental discountsPercentage off Distributor Net Price (WPL) MechanismBlanket approval through DART Manual approval through DART Eligible PartnersTailored to registered partners with an SMB focus All Registered partners, including Premier, Silver and Gold Program UsageExisting and new customersSingle use only for new end user SMB Icebreaker is a deal-based competitive program SPED is a blanket discount program targeted at smaller resellers

17. 17 © 2003 Cisco Systems, Inc. All rights reserved. Presentation_ID 17 © 2001, Cisco Systems, Inc. All rights reserved. Presentation_ID