Cisco’s Action Plan Sep 2004

Topic 1 – Channel Engagement and Resources Janice Hulse

Channels - Action Plan (Tactical) Action Items Objective Actions Milestone 1. Evaluate options for Partner Help Desk Set up APAC help desk for Partners Evaluate Options & select Vendor Define Scope & deliverables Negotiate and award SOW and Contract Kick off Helpdesk for English language support Help desk Launch in India, Sri Lanka, Singapore, Malaysia, Indonesia Help desk Launch in Hong Kong, Philippines, Vietnam, Thailand, Taiwan, Korea Help desk Launch in China Complete Q1 FY05 Q2 FY05 2. Develop communications plan including partners, distributors and end users Partner Communications Partner Newsletter Qtr Print Communicate CCAB updates to member partners. Completed first issue Ongoing Distributor Communications To work with Disty team on establishing communication strategy End-user Communications SMB E-newsletter. TDM and BDM FY05

Channels - Action Plan (Tactical) Action Items Objective Actions Milestone 3. Review training programmes and develop plan for short term Expand AT training development coverage to 2-Tier Partners Outsourcing training pre-sales & remote lab classes delivery to selected CLPs to cover 2-Tier Partners 1. Pilot sessions with Indonesia on Q4FY04 2. Mainstream roll-out in FY05 4. Review Distributor RMA/DOA process Establish clear policy and guideline on distributor return process Evaluate the current return process Define the area of improvement Build new policy and process Completed Q1 FY05 Q2 FY05 5. Develop comprehensive guide to training/e-Learning for Partner management Rectify & enhance CLPs’ training delivery quality WW Channels (LPBD) is building a Measurement Metrics framework to assess the delivery performance of CLPs Awaiting for confirmation from WW Channels

Channels - Action Plan (Strategic) Action Items Objective Actions Milestone 1. Roll out new cert / spec formats to include vertical / horizontal focus Adapt Specializations to be in line with business & market requirements Work with WW Channels team to evaluate new specialization. Localize, adapt and launch new specialization. Ongoing Q1 FY05 2. Strategy for Premier level in Certification /Specialisation programme Re establish the Premier Brand and rejuvenate it to drive Commercial Growth Assess current situation Work with in-country teams and Regional teams to identify key issues Draft action Plan Execute Plan Completed 3. Evaluate opportunity of financing options for 2-tier Develop channel finance offerings to extend credit capacity and payment terms for our disty and 2-tier partners Conduct needs assessment by country Identify potential finance partners and develop business case Pilot in 1-2 key geographies TBD 4. Technical Competency for Distributors Develop the technical capabilities of distributor to align with Cisco GTM strategy Establish the process to assess the current distributor competency Develop distributor technical training roadmap Build the training execution with Technical Operation Team Q2 FY05

Channels - Action Plan (Strategic) Action Items Objective Actions Milestone 5. Evaluate demo/NFR programme options To assist partners to purchase and deployment Cisco products for demo lab AT team to revert on product eligible list Confirmed backend process Proposal to country upper mgt Further update to be advised 6. Cisco Lab Lease program - To allow Channel Partners to acquire demo/lab equipment with little or no upfront costs Open to Gold, Silver, Premier & Spec partners Up to 1% of GLP per month for hardware Available in AU, HK, SG, TW, KR, NZ & China, MY & Thon separate price basis Ongoing 7. Value Incentive Program IV - Reward specialized partners who invest in Cisco IPC & Security Ongoing 6 –month program FY05Q1 – Q2 Maintain threshold & payout Leverage Global CSAT survey Revised growth targets 30%/35% Q1FY05 – Q2 FY05

Topic 2 – Cisco Services and Support Thomas Lam

Services Action Plan – Tactical Action Items Objective Actions Milestone 1. Creation of SMB Service solution that is part of the overall product offering Develop a service offering that will meet the requirements of the SMB market in terms of function and price Launch SMB Support Assistant (SSA) program for APAC countries Develop service communication toolkit In Country launch of campaign with participating Resellers Review success metric with country stakeholders General Availability of programme to all other countries FY05 2. Develop Marketing toolkit & communications programme Service offerings, processes & support tools How to sell Cisco Services Increase Awareness and Relevance of Cisco services in SMB Develop SSA Starter Kit for distributors and resellers Phased launch Internal, Distributors and resellers Leverage APAC Channel resources, ie Distributor portal and 360 website to educate partners on services Complete On going

Services Action Plan – Tactical Action Items Objective Actions Milestone 3. Branding of Cisco Services to end-customer Define Cisco Services value proposition, “why services” messaging Embed services messaging into all outbound campaigns Development of messaging and content Phased launch Internal, Channel, End Users Develop Integrated Product/Channel/Services SMB Demand Generation Programmes Ongoing 4. Launch Services Deep Dive for Commercial Market by country Develop commercial business plan jointly with in-country cross-functional teams for key countries Phased approach: Internal to brainstorm GTM strategy External Completed selected countries.

Services Action Plan – Strategic Action Items Objective Actions Milestone 1. Review Cisco Service Engagement & process Phased approach based on requirements from partners #1 Item: to explore product + service bundling “ease-to-order” option Initiate discussion with Corporate to discuss and feedback requirements Ongoing 2. Formation of APAC Commercial Service Board Establish relationship with key partners to garner feedback on services strategy and direction To build up services information to these selected partners prior to the next CCAB meeting for a more fruitful discussion

Cisco SMB Support Assistant will… Reduce your inventory and operational costs Reduce your return shipping costs Provide faster response time through local depots Increase service revenue through complementary services offerings Provide renewal opportunities through better contract management

Topic 3 – Commercial/SMB Stephen Sinclair

Commercial / SMB – Action Plan (Tactical) Action Items Objective Actions Milestone 1. Focus on Vertical and Horizontal campaigns… which ones are TBD, However Security a key focus. Fewer, impactful (targeted) programmes Develop Integrated Channel and End User Demand Generation Programmes Develop Security Threat Defense Campaign (Promotional Bundles ,, Channel Marketing Toolkit, Channel Rewards, End User Demand Gen) 160 Resellers registered for toolkit End User DG Launched in 6 Countries to date  (HK, M'sia, Philippines, Thailand, India, Indonesia) Program future waves: - Worm Mitigation Q1, Endpoint Security & Outbreak Prevention Q1-Q3 Review impact and Channel Feedback Complete Ongoing Q1 FY05 2. Partner protection for hunting new customers.. Programmatically to provide incentives for partners that actively, develop, and close new business opportunities. Launch Opportunity Incentive program (OIP) Pilot in Malaysia in FY05Q1 Open to Gold Silver, Premier & Registered Partners Provide a 5% backend rebate 3. Trade in Programme for old Telephony Products Provide buying incentive through trade in discount Great Exchange Program launch in Thailand

Commercial / SMB – Action Plan (Tactical) Action Items Objective Actions Milestone 4. Increased marketing to drive relevance of networking in SMB space… TBD Increase Awareness and Relevance of Cisco in SMB APAC localization of SMB Class Solutions Initiative (Solutions for 20-250 market include Products, Service & Support, Financing, Training) Phased launch Internal, Channel, End Users Leverage launch to drive PR & Awareness in market Develop Integrated Channel / End User SMB Demand Generation Programmes Q1 FY05 Q2 FY05 5. Bundled solutions for SMB 20-250 users Product Pricing Bundles for SMB Customers 6. Defining, communicating, and selling Cisco ‘Value’ proposition… executive and sales level Develop “Why Cisco” presentations that Reseller executives and Account Managers can deliver to End Users Development of messaging and content Review with CCAB Board Members In Progress Next CCAB

Commercial / SMB – Action Plan (Strategic) Action Items Objective Actions Milestone 1. SMB Products… appropriate price/value trade-off for customers Introduce products tailored to Commercial customers “Corporate” is actively working new product development for Commercial customers, including both new hardware and software functionality Cisco does not comment on new products pre- launch, but multiple new Comm’l-focused products will be launched in the next 12 months 2. IPC - Hand-set pricing & bundles apps Creation of specific product for Commercial / SMB market Formation of NEW Cisco BU CV2BU Strategy, product direction and roadmap development Completed Q1 FY05 3. SMB Leasing Establish easy to use leasing programmes for 2-tier partners to grow the commercial & SMB market Pilot in 2 / 3 countries ANZ pilot in progress, financing partner identified & program launch end Aug Assessing opportunity to run pilots in Korea, Singapore or China in FY05 ANZ program go live – expected Aug 2004 Korea, Singapore and China feasibility to be assessed and go / no go decisions made by end Q1 FY05 4. Evaluate opportunity of financing options for 2-tier Develop channel finance offerings to extend credit capacity and payment terms for our disty and 2-tier partners In Review - Dedicated Channel Finance headcount to be secured as first step. TBD