Collab Systems Release 10 Licensing Update CTG Strategic Pricing and Licensing January 2014

Pricing and Licensing Strategy for FY14 Add Value to Current UC Licensing Solutions Encourage Strategic Collaboration Trends Deliver Simple and Consistent Pricing Methodology Enable Migration between On Premise and Cloud Improve Ease of Doing Business with Cisco Licensing Strategy Overview There are no changes to the structure of Cisco’s licensing, but significant value has been added. Cisco still offers three main licenses – UCL Enhanced, CUWL Standard, and CUWL Pro. Cisco continues to add value to existing offers by adding products and features into the offers at no additional charge. The following are key elements of Cisco’s Collaboration Pricing and Licensing strategy for FY14. Add Value to Current UC Licensing Solutions Maintain market price with increased value Provide features and products customers value Encourage Strategic Collaboration Trends Offer flexibility in voice and video offers including cloud and mobile Deliver Simple and Consistent Pricing Methodology Continue with a consistent user-based bundling strategy Enable Migration between On Premise and Cloud Improve Ease of Doing Business with Cisco Including ordering, UCSS renewal, License Mgmt.

UCL ENHANCED / ENHANCED PLUS Cisco Collaboration Systems Release 10 Licensing Summary Maintaining simplicity with added value CUWL PROFESSIONAL CUWL PROFESSIONAL WebEx Conferencing Personal Multiparty CUWL STANDARD CUWL STANDARD Multiple Devices Cisco Unified Messaging UCL ENHANCED / PLUS UCL ENHANCED / ENHANCED PLUS Cisco Prime Collaboration Standard Expressway firewall traversal Support for All Personal Endpoints One / Two Devices Cisco’s licensing structure hasn’t changed since last year, with three main licenses – UCL Enhanced/Enhanced Plus, CUWL Standard, and CUWL Pro. As depicted here, each license builds upon the previous. Note that the elements highlighted in green are updates and additions for Systems Release 10. More details on each of these new features will follow in this deck. Note that the UCL Basic and UCL Essential licenses still exist for more basic needs but aren’t shown here. The main three offers are Cisco’s focus for collaboration workers. Updates and additions to System Release 10 listed in green

UCL ENHANCED / ENHANCED PLUS Cisco Collaboration Systems Release 10 Licensing Summary UCL ENHANCED / ENHANCED PLUS First level of licensing for Collaboration users Core components: UC application support for one device (UCL Enhanced) or two devices (UCL Enhanced Plus) per user Support for Cisco’s entire portfolio of personal endpoints Expressway firewall traversal for remote and mobile workers (firewall traversal for IM&P, voice and video within an organization) Cisco Prime Collaboration Standard UCL ENHANCED / PLUS UCL Enhanced list price = $210 per user UCL Enhanced Plus list price = $295 per user UCL Enhanced is the first level licensing for Collaboration users This hasn’t changed from last year’s release. Key features include … UCL Enhanced supports UC applications for one device and UCL Enhanced Plus supports for 2 devices per user Both licenses support Cisco’s entire portfolio of personal endpoints (including all Jabber softclients, IP and video- enabled devices, personal telepresence devices) New for System Release 10 is the inclusion of Expressway for remote and mobile workers, which provides a VPN-less option for IM&P, voice and video firewall traversal within an organization. This enhancement makes users truly mobile. Note that B2B and third-party interop firewall traversal are not included here, but that capacity can be purchased separately. Another addition in System Release 10 is the inclusion of Prime Collaboration Standard licensing management. This is included in CUCM.

Cisco Collaboration Systems Release 10 Licensing Summary CUWL STANDARD Most popular licensing for Collaboration users Core Components: All features of UCL Enhanced / Enhanced Plus Including new additions of Expressway firewall traversal and Cisco Prime Collaboration Standard UC application support for more than two devices Cisco’s unified messaging CUWL STANDARD UCL ENHANCED / PLUS CUWL Standard has become Cisco’s most popular licensing for Collaboration users This license includes all features of UCL Enhanced / Enhanced Plus, including the new additions of Expressway and Cisco Prime Collaboration The key differentiators as compared with UCL Enhanced continue to be … UC application support for more than two devices Cisco’s unified messaging, or Cisco Unity Connection CUWL Standard list price = $325 per user

Cisco Collaboration Systems Release 10 Licensing Summary CUWL PROFESSIONAL CUWL PROFESSIONAL Most comprehensive licensing for Collaboration users Core Components: All features of CUWL Standard and UCL Enhanced / Enhanced Plus One named user license for WebEx on-premise AND 1-year subscription for WebEx in the cloud One named user license for Personal Multiparty, to host 4-party video conferences CUWL STANDARD UCL ENHANCED / PLUS The third and final main software bundle is CUWL Pro, which is the most comprehensive license option As you can see here, this includes all features of CUWL Standard and UCL Enhanced / Enhanced Plus. Again, this structure has not changed since last year. There are two key differentiators we’ll discuss as compared with CUWL Standard… The first, is the enhancements made to the WebEx Conferencing component of CUWL Pro licensing. Although WebEx is included in CUWL Pro today, the offer has changed in two significant ways. First, the named user license replaces the existing ratio of ports per user. So instead of one WebEx port for every 10 CUWL Pro licenses, as it is today, the offer includes one named user for each CUWL Pro license. Secondly, the offer is updated to include both the perpetual, on-premises license of WebEx Meeting Server (or CWMS) AND the one-year cloud subscription for WebEx Meetings Center. The second significant enhancement in CUWL Pro is the addition of the named user license for Personal Multiparty. For each CUWL Pro user license, one named host is entitled to host ad-hoc multiparty meetings with up to three additional parties, using a personalized contact address. This is included with CUWL Pro and can also be purchased a la carte to complement lower levels of licensing. CUWL Professional list price = $500 per user

Enhanced Plus / Enhanced Cisco Collaboration Systems Release 10 Licensing Summary Personal Multiparty Personal Multiparty  + N/A WebEx Conferencing Unity Connection Expressway firewall traversal Jabber UC Jabber IM/P Cisco Prime Collaboration # of Devices Supported Multiple Two / One One CUWL Professional Standard UCL Enhanced Plus / Enhanced Basic Essential Price $500 $325 $295 / $210 $125 $40 Allows for up to 4 parties in a video conference; included in CUWL Pro WebEx Conferencing One Named User license for both WebEx Meeting Center (1 year) AND WebEx Meetings Server; included in CUWL Pro Expressway firewall traversal Firewall traversal for voice and video; included in UCL Enhanced & above ------------------------- Firewall traversal for IM&P; included with all UCM licenses CPE & Hosted CPE & Hosted Cisco Prime Collaboration Cisco Prime Collaboration Standard; included with CUCM  = included w/ license This license overview should look familiar. Last year, a similar graphic was used to depict Cisco licensing, and that structure hasn’t changed. We use this graphic to show more of the details in each license offer. Note that the check marks represent what’s included in the user license, while the plus signs are a la carte options that have additional costs. Again, perpetual pricing has not changed. The list prices shown here have remained constant while Cisco has added products and functionality to the licenses. More details of each enhancement can be found in following slides. While the focus for collaboration users is on the three main licensing levels, Cisco realizes that our customers still need to provision simple phones to put in public spaces or shared use environments. Essential and Basic provide licensing for those scenarios where customers still need to enable endpoints for places, not people. Examples include: conference rooms, lobbies, quiet rooms and fax machines. + = optional add-on N/A = not available w/ license

Personal Multiparty Personal Multiparty Collab Systems Release 10 Licensing Revisions Personal Multiparty Added Value to Current UC Licensing Solutions Named host for 4-person video conference included in CUWL Pro Supports resolutions up to HD w/ Orchestration Ad hoc, Rendezvous, or Scheduled meetings Rich interoperability Strategic Collaboration Trends Drives personal, enterprise-wide HD video adoption Simple and Consistent Pricing Methodology Per user license consistent with UC Licensing offers Included in CUWL Pro at no additional cost Offered a la carte on a per user basis Personal Multiparty alignment with FY14 strategy

WebEx Conferencing WebEx Conferencing Collab Systems Release 10 Licensing Revisions WebEx Conferencing Added Value to Current UC Licensing Solutions Customer provided one Named User license for both WebEx Meeting Center (1 year) AND WebEx Meetings Server Per user license model replaces 1:10 port to license ratio Strategic Collaboration Trends Encourages customers to deploy in the cloud with no risk Simple and Consistent Pricing Methodology Per user on premise and cloud options consistent with per user components in all licensing options Migration between On Premise and Cloud Flexibility to choose on premise deployment after 1 year cloud subscription, at no additional cost WebEx Conferencing alignment with FY14 strategy

Expressway for remote and mobile workers Collab Systems Release 10 Licensing Revisions Expressway firewall traversal Added Value to Current UC Licensing Solutions Firewall traversal for voice and video included in UCL Enhanced, CUWL Standard, CUWL Pro for mobile remote workers registered to CUCM Firewall traversal for IM & Presence included with CUCM Strategic Collaboration Trends Drives pervasive video and mobility Simple and Consistent Pricing Methodology Per user license consistent with UC Licensing offers Ease of Doing Business with Cisco Inclusion of firewall traversal in licensing reduces need for incremental products Expressway for remote and mobile workers alignment with FY14 strategy

Cisco Prime Collaboration Standard Collab Systems Release 10 Licensing Revisions Cisco Prime Collaboration Standard Added Value to Current UC Licensing Solutions Allows customers and partners to manage full UC deployment Configure and deploy solutions, track performance metrics and trends, view real-time dashboards Self-service allows for rapid revisions and deployment Strategic Collaboration Trends Accelerates deployment of all UC applications including video Ease of Doing Business with Cisco Directly addresses one of customers’ key pain points that management of Cisco solutions is difficult and fragmented Single, consistent platform enables customers and partners to better manage deployments and track usage Advanced version of Prime Collab also available a la carte Cisco Prime Collaboration alignment with FY14 strategy

System Codecs and Quickset Platforms Collab Systems Release 10 Licensing Revisions Device Support UCL Enhanced / Enhanced Plus CUWL Standard CUWL Professional TelePresence Room 69xx 89xx UCL Basic Jabber Desktop TX / CTS / T Series 78xx UCL Essential 99xx 6911 79xx MX / Profile Series Fax Analog DX650 Jabber Mobile 6921 792x System Codecs and Quickset Platforms Third Party SIP 3905 6901 7821 EX60 / EX90 7937 / 8831

for 4 party video conferencing CUWL Pro Customer Entitlements Based on License Version and Valid UCSS Personal Multiparty WebEx Conferencing Expressway* Named User license for 4 party video conferencing Named User license for WebEx Meeting Center (1 yr) AND WebEx Meetings Server Voice & Video and IM/P CUWL Pro 9.X and 10.0 New CUWL Pro 9.X and 10.0 Users (new / migration / add-on) Existing Customer On or Upgrading to 9.X or 10.0 with valid UCSS Pre-9.X New CUWL Pro Pre-9.0 Users Existing Customer On or Upgrading toPre-9.0 with valid UCSS      (On-premise only)        *Expressway voice & video also available in 9.X and 10.0 for UCL Enhanced/Enhanced Plus and CUWL Standard; IM/P available in all license levels. CUWL Pro Availability Minimum of 50 CUWL Professional user licenses minimum WebEx Meeting Center (cloud) is not available in China and Russia New CUWL Professional customers and existing CUWL Pro customers on valid UCSS have the opportunity to take advantage of the updates in Systems Release 10, in both versions 9.X and 10.0.

UCSS Benefits Most Cost-Effective Way to Upgrade Multi-year subscriptions provide predictable, fixed pricing for upgrades. If the customer upgrades once in 5-7 years, UCSS costs less than a-la-carte upgrades. 1yr x UCSS UCSS Subscription $10 / user / year A-la-carte Upgrade 1 x Standalone Upgrade New Software Application 1 x User Connect License $100 / user $50 / user Example depicts savings from UCSS compared to a-la-carte upgrades

Drive to Collab CB Plus Promotion – US/CAN Migrating to CUCM 9.1 or 10.0 Competitive Displacement Up level Licenses (UCL Enh  CUWL Std or CUWL Std  Pro) Licenses at Same Level NEW! UCM 10.0 upgrades eligible BE7K: 64% CUAC 10.0: 64% VVSK includes Expressway EX Series: 78% No UCSS UCSS No UCSS UCSS 85% Get Current Stay Current SKUs Contact GLO for licenses; Use CB Plus discounts to expand Migration Licenses 85% 100% Licenses 3 Years UCSS 64% 5 Years UCSS 78% 3 Years UCSS 64% Phones, Gateways, UCL, WebEx Meetings 59% TelePresence, CUWL, CC, Collab SW, UCSS, BE6K, BE7K, CUAC 64% 65% Services 33% UCS Video Velocity Starter Kit EX Series Limited Offer MCU 5310/5320 or TS VM/310/320 & Expressway 85% Unlimited EX60 or EX90, BE6K, BE7K, HCS or TPaaS 78%

Maintained Tiered Pricing for UCL Licenses Collab Systems Release 10 Licensing UCL Enhanced Plus Enhanced Basic Essential 1 to 999 Users $295 $210 $125 $40 1,000 to 9,999 Users $280 $195 $110 $25 10,000 and Above Users $275 $190 $105 $20 Tiered pricing continues to exist for Cisco’s UCL license offers.

Typical Use Case Scenarios and Partner Sales Motion Partner Only Typical Use Case Scenarios and Partner Sales Motion Use Case Scenario Partner Sales Motion New customer (Greenfield Opportunity) Customer does not have Cisco UCM Lead with CUWL CUWL Pro for customers considering personal multiparty video and/or WebEx standalone CUWL Standard for customers primarily focused on call control Current UCM customer on Pre-9 version of UCM Upgrade to 9.x or 10.0 Collaboration Breakaway Plus: Drive to Collab Current WebEx (Cloud) customer Customer does not have Cisco UCM Lead with CUWL Standard to introduce entire Cisco Unified Communications Manager

Cisco AM Call to Action Emphasize Key Strategic Initiatives Sales Only Cisco AM Call to Action Emphasize Key Strategic Initiatives Upsell to CUWL Pro for Personal Multiparty video and WebEx Named User license enhancements Highlight Expressway’s value for employees to work as effectively outside the org as inside the org (UCL Enhanced and above) New Customer Opportunities Lead with CUWL Pro for the most comprehensive collaboration bundle Emphasize the added value in CUWL Pro, CUWL Standard, UCL Enhanced/Enhanced Plus at same competitive market prices Installed base on valid UCSS equals new opportunity! Upgrade customers to Release 10 for all product enhancements Service Renewals Quotes (UCSS, ESW) No price changes to UCSS and ESW Expect increased renewal rates tied to increased value of licenses

Additional Licensing Resources Cisco Unified Communications Licensing: http://www.cisco.com/en/US/partner/products/ps9156 Partner Licensing Community: https://communities.cisco.com/community/partner/collaboration/licensing Cisco Promotional Offers: http://www.cisco.com/web/partners/incentives_and_promotions/

Additional Drive to Collab Resources www.cisco.com/go/drivetocollab CB Plus: www.cisco.com/web/partners/incentives_and_promotions/cbplus.html Migrate to Cloud: www.cisco.com/web/partners/incentives_and_promotions/cmcp.html Midmarket: www.cisco.com/web/partners/incentives_and_promotions/midmarket_collaboration.html Video: www.cisco.com/web/partners/incentives_and_promotions/cisco_video_collaboration_promotion.html

Additional Product Information Personal Multiparty: http://iwe.cisco.com/web/conferencing/sales-resources WebEx Conferencing: http://wwwin.cisco.com/voice/products/conferencing/ Expressway: http://iwe.cisco.com/web/expressway Cisco Unified Communications Manager: http://iwe.cisco.com/web/enterprise-call-control-and-session-management/home Cisco Unified Communications Software Subscription (UCSS): http://www.cisco.com/en/US/partner/products/ps9158

Collab EA Cisco Enterprise Agreement for Collaboration

Overview of Enterprise Agreement Software and services rights for entire organization in single, co-terminated, multi-year agreement Suites include access to software, upgrade subscriptions (UCSS) and technical support (ESW) Hardware excluded Minimum number of knowledge workers is 2,000 Limited to authorized regions Price takes into account customers’ previous investments in Cisco collaboration products Previously procured perpetual licenses and the residual value of UCSS/ESW are factored into pricing Fixed cost over the length of the contract based on # of knowledge workers at time of purchase Customer has unlimited applications and services consumption over the term of the agreement without financial true-ups due to growth License rights include unlimited organic growth as well as inorganic growth (mergers and acquisitions) up to 20% The Cisco Enterprise Agreement for Collaboration, or Collab EA, provides software deployment and services consumption rights for the entire organization in a single co-terminated, multi-year agreement. Under the Collab EA, each suite includes enterprise-wide access to software, upgrade subscriptions, or UCSS, and technical support, or ESW. Note that hardware is excluded from the Collab EA and must be purchased separately. At least 2,000 knowledge workers are required to qualify for the Collab EA. Please leverage your EA BDM [voice: letters B,D,M] or Licensing Executive if you have potential opportunities you’d like reviewed. [click] Along with the number of knowledge workers, the Collab EA takes customers’ previous investments in Cisco collaboration products into account. Previously procured on-premise licenses and the residual value of the UCSS and ESW are factored into pricing, so customers do not pay twice, depicted here by the reduction in the knowledge workers by the existing installed base. The cost of the Enterprise Agreement is fixed over the length of the contract agreement, based on the number of knowledge workers at the time of purchase. The customer then has unlimited applications and services consumption over the term of the agreement without any financial true-ups due to growth. License rights include unlimited organic growth, as well as inorganic growth, such as mergers and acquisitions, up to 20%. Customer term lengths can be 3 or 5 years. Note that periodic payment options are available through Cisco capital to meet customers’ budget needs and align with their deployment requirements.

Overview of Enterprise Agreement Offers Enterprise-class IP telephony call control TelePresence point-to-point call control Messaging Desktop, Mobile, IM & Presence Jabber clients Emergency responder, E911 Unified Communications Suite WebEx On-Premises Suite On premise conferencing suite Audio and video conferencing Web meetings conferencing HCS-LE Management Suite Provisions, activates UC services for subscribers Automates upgrades, produces reports and provisions architecture Supplies root-cause and service impact analysis Provides monitoring and diagnostics TelePresence Multi-Party Suite TelePresence Server with multi-point bridge functionality TelePresence Orchestrator providing bandwidth management Customer Collaboration Suite Based upon agents and ports, rather than knowledge workers like other suites Enterprise contact center platform and applications for inbound & outbound call handling Includes social media monitoring, queuing, & workflow There are five Collab EA suites available. As noted here, many are new to the market in FY14. Please contact your EA BDM or Licensing Executives if you have potential opportunities you’d like reviewed.

Overview of Enterprise Agreement Authorized Collab EA Geographies (as of Q1FY14) To qualify for a Collab EA, the transaction must take place in one of these authorized Collab EA countries and transacted through a Collab EA-authorized partner. Companies with global workforces can deploy on a worldwide basis, as long as their Collab EA transaction occurs in one of these authorized geographies. Cisco is constantly expanding authorized geographies, so please contact your Collab EA BDM or Licensing Executive for the most current listing of authorized Collab EA countries. Americas EMEAR APJC

Additional Information Collab EA: http://iwe.cisco.com/web/collaboration-enterprise-agreement

Systems Release 10 Alignment to consumption models

Collab Systems Release 10 Cisco Enterprise Agreement Alignment Introduction of four new product suites to complement the existing Unified Communications Suite: WebEx On-Premises Suite HCS-LE Management Suite Telepresence Multi-Party Suite Customer Collaboration Suite Alignment to Systems Release 10 Product Enhancements Personal Multiparty Included in the Telepresence Multi-Party Suite WebEx Conferencing On premise meetings conferencing included in the WebEx On-Premises Suite Expressway firewall traversal for remote and mobile workers Included in Unified Communications Suite (previously VCS-E was included) Prime Collaboration Standard Edition Included in Unified Communications Suite Expected EA integration ~3-6 months after Systems Release 10 launch

Collab Systems Release 10 Business Edition Alignment CUWL Standard replaces CUWL BE offer for BE6K Reduces confusion from previously separate, but similar CUWL BE and CUWL Standard offers BE6K continues to support up to 1,000 users BE Systems Release 10 will be available approximately one month after the main CUCM release Alignment to Systems Release 10 Product Enhancements Personal Multiparty Available through CUWL Pro offer only; no license specific to BE WebEx Conferencing Expressway firewall traversal for remote and mobile workers TBD Prime Collaboration Standard Edition Prime Collaboration included in BE6K

Collab Systems Release 10 HCS Alignment Alignment to Systems Release 10 Product Enhancements Personal Multiparty Not available through HCS WebEx Conferencing Expressway firewall traversal for remote and mobile workers Firewall traversal for IM & Presence included in all HCS offers Firewall traversal for voice and video included in HCS Standard and HCS Foundation Prime Collaboration Standard Edition Prime Collaboration continues to be included in HCS Management Suite