Cisco’s XSP Strategy in EMEA Fred Danielsen © 2001, Cisco Systems, Inc. 2

Agenda Market Evolution Foundation Technology Accreditation Programmes Valuable Ecosystem Partners

Application Service Provision Chapter One CUSTOMER SERVICE INFRASTRUCTURE BUILD APPLICATION RELEVANCE PRICING MODEL CHANNEL STRATEGY MARKETING FUNDING FOR IPO ACQUISITION Application Services

Application Service Provision Chapter Two MARKETING CUSTOMER SERVICE CHANNEL STRATEGY Application Services INFRASTRUCTURE BUILD FUNDING FOR IPO PRICING MODEL CUSTOMER ACQUISITION APPLICATION RELEVANCE

Application Service Provision Chapter Two CUSTOMER SERVICE INFRASTRUCTURE BUILD APPLICATION RELEVANCE PRICING MODEL CHANNEL STRATEGY FUNDING FOR IPO ACQUISITION MARKETING Financial: Great Plains Back-up: Netstore Application Services DIGEX & Worldcom C&W & Digital Island SiteSmith & MFN Equant & Global One & FT Email: Telecomputing Future Link E-Learning: SABA

Application Service Provision Building On Strengths CUSTOMER SERVICE PRICING MODEL CHANNEL STRATEGY FUNDING FOR IPO ACQUISITION MARKETING APPLICATION RELEVANCE INFRASTRUCTURE BUILD DIGEX & Worldcom C&W & Digital Island SiteSmith & MFN Equant & Global One & FT Financial: Great Plains Back-up: Netstore CRM: 7C Email: Telecomputing Future Link E-Learning: SABA

ASP Market Evolution ‘98 ‘00 ‘01 ’02-’03 Market Maturity Cisco in the US: created an application validation lab that enabled app providers to use and test their solution over the Internet Cisco in EMEA: As always, Cisco will be leveraging the core competencies of our partners together with quality infrastructure.

Evolving Business Models Business Services Management full Network Application delivery and Mngt Network Application Hosting Managed Services Dedicated Hosting Shared Hosting Hosting: It’s about outsourcing of server farms and operation services within a third party data center. Dedicated Hosting: Setup, monitoring and operation of one or more servers which are dedicated (exclusive) for one individual customer; usually the servers are rent to the customer on a monthly basis and fully managed by the hosting provider within a data center. The applications (software), which are running on these servers, are managed by the customer. Application Management: Setup, monitoring and operation of applications which usually belong to the customer and are running on hosted servers within a data center. Application Hosting: Dedicated Hosting + Application Management Co-location Housing none Complexity Level low high

Customer Issues Trust Guarantees Credibility Value to Business

Cisco Definitions Application Service Provider (ASP) A company selling software as a service for a subscription or usage fee. The company guarantees its service to end customers. Examples: NetStore & Telecomputing Application Infrastructure Provider (AIP) A company providing the network, data center and application delivering and management of ASP services. Examples: IBM & BT Ignite

Foundation Technologies Streaming Applications E-Commerce Web Hosting Intelligent Network Services Content Distribution & Management Content Routing Switching Edge Delivery ASP Services Content Delivery Networks User’s experience

End-to-end Capability AIP WAN Data Centre ASP Cage Provides an End To End managed Infrastructure that enables delivery of ASP services QoS Robust Infrastructure Repeatable Scalable Secure LAST MILE (fixed / wireless)

Accreditation Infrastructure Announced in April’00, AIPs differentiate Application Hosting service Network Application Infrastructure assessment - Data Centre - QoS Architectures - Security Design - Management Framework - Connectivity (Last mile, WAN, Data Centre) enables AIPs to provide differentiated service offerings to ASPs by creating high-performance, secure, and reliable network application hosting infrastructures

Accreditation Applications ISV PARTNER ASP AIP IBM ASP Prime / CMC / *ASP 2000 CISCO * Cisco, MS, Unysis, Intel, Mercury Interactive, EMC

Ecosystem Partners Bandwidth Platform Sun / IBM/ HP Providers Billing & Monitoring SI & Consulting Bandwidth Providers Platform Sun / IBM/ HP ASP AIP Channel Partners 1-tier / 2-tier SPs/ GSIs Investment Cisco VCs Security Partners

Final Thoughts Cisco Delivers All Key Ingredients: ASP Cisco Delivers All Key Ingredients: Foundation Technology Accreditation Programmes Valuable Ecosystem Partners AIP ENABLER

© 2001, Cisco Systems, Inc. 18