1. The IP Communications Top 5 Richard McLeod Director, IP Communications Worldwide Channels Cisco Systems

2. Top 5 Reasons For Customers To Migrate To IPC 1.Reduced expenses & total cost of ownership 2.Technology obsolescence – the time is right 3.Redundancy & business resilience 4.Virtual networking of business locations (including partners & even customers) 5.Enhanced employee productivity & customer satisfaction via Unified Communications

3. Monthly 22% … results in delays & missed deadlines Daily 36% … unable to reach coworkers on first try… Daily 52% … have to use multiple methods of reaching coworkers … 6.4 types comm. devices Communication devices & apps proliferating… Today’s Business Problem: Complexity Impacts Productivity 27% traveling 1X month avg. Employee increasingly mobile… + $$$$ Impacting the bottom line Source: Sage Research January, 2006 ( N = 203, 45% Int, 20% SMB, 35% Commercial) IP Communications Can Solve This Problem Thus Increasing Productivity & Profits

4. Initial IPC Deployments Fuels New Applications Deployment  Over half of organizations with IPC plan to deploy unified messaging and/or SoftPhones within the next two years  All types of conferencing are already wide-spread and growing fast, although many organizations do not currently have these integrated with their IPC Unified Clients Conferencing & Collaboration Unified Messaging Enterprise IM Soft Phones Current Usage: % of organizations that have it deployed 19% Voice: 83% Web: 50% Video: 56% 34%36%31% Current Usage: Average % of employees that use it within organizations that have it deployed 44% Voice: 42% Web: 35% Video: 33% 52%46%27% Planned adoption: % of organizations considering first-time deployment within 24 months 47% Voice: 12% Web: 37% Video: 31% 53%35%50% Source: Sage Research January, 2006

5. Benefits Realized Through Unified Communications  On average, current users of Unified Communications experience time savings of 30 to 55 minutes per day per employee as a result of these applications  Additionally, conferencing and SoftPhones result in significant out-of-pocket cost savings through lower travel expenses, cell phone and long distance bills Unified Clients Conferencing & Collaboration Unified Messaging Enterprise IMSoftPhones Examples of Benefits Realized by Users 32 minutes saved daily by reaching workers on first try (automatical ly knowing the best way to reach them) 30% reduction in conferencing expenses (from in-house conferencing) $1,700 saved monthly on travel avoidance 30 minutes saved per virtual conference set up through Outlook/Notes integration 43 minutes saved per employee per day from more efficient message management 55 minutes saved per day for traveling employees 31 minutes saved daily by reaching coworkers through IM 53 minutes saved daily by escalating IM chats into phone calls 51 minutes saved daily by escalating IM chats into web conferences $1,727 saved monthly from cell phone and long distance avoidance 40 minutes saved daily by traveling employees (convenience) 3.5 days saved per year through business continuity impact Source: Sage Research January, 2006

6. Top 5 Reasons For VARs To Build An IPC Practice  Today’s Buying Criteria Requires It  Blended end-to-end technology requirements  Converging CIO/TCM Depts./Decision Making  Successful Service Practice Requires It  2-3X Revenue Growth Opportunity  Converged Network, Security, UC Apps, Vertical Apps  Increased Prof/Mgd Services Opportunity  Increased Customer Value Add / Retention

7. IP Communications: Fueling New VAR Opportunities Convergence Rich Media Communication Customer Value & VAR Profitability New Applications Opportunities New Services Opportunities

8. Top 5 Secrets To VAR Success Building An IP Communications Practice 1.A Strong Foundation In Convergence Networking (LAN, WAN, Security, QoS, Wireless, etc.) 2.Applications & Software Skills – Beyond Voice Apps (Directory Services, MS Exchange, Lotus Notes, CRM, XML, etc.) 3.A business process improvement, consultative and financial sales methodology - not technology selling. Likely requires significant sales team changes. 4.Solid integration, professional services, managed services competencies and offerings. Managed as a Professional Services P&L. 5.A vertical emphasis with a “unique” offer to the market which includes a uniquely packaged group of IPC enabled business applications & surround services.

9. To Learn More …  Cisco IPC Solutions www.cisco.com/en/US/products/sw/voicesw/index.html  Sage Research IPC Productivity Study www.cisco.com/en/US/products/sw/voicesw/index.html  Becoming A Cisco IPC Partner www.cisco/go/partner