Mar 25, 2015 Business Case Greater China Cut-off Time Extension Jason Liu

2 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Executive Summary

3 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Problem Statement Biz Requirement The Greater China sales teams, partners and customers are asking for an extended cut-off time for standard orders 3pm cut-off time has been set for 10+ years in Greater China Operation IDC says most market players in China have moved the cut-off time to business close time Benchmark is changed especially on UCS products Market Customers and Account Teams are not satisfied with the current 3pm cut-off time CSAT

4 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential China Business Close Time Partner Feedback Quote” Other market players like H3C did the extension long time ago already. I don’t understand why Cisco still sticks to the 3pm” Taiwan 5pm Partner Feedback Quote “We feel uncomfortable about the 3pm cut-off time, HP is with 5pm in Taiwan, why Cisco cannot do the same. In terms of the delivery service, I don’t think Cisco is flexible and competitive as HP. Hong Kong & Macau: 5pm Partner Feedback Quote “The NBD 3:00pm cut off time is not satisfying the market and customer needs in HK. When customer calls on issue during office hour, it generally takes an hour to get the CSE assigned, and further takes 2-3 hours to get s exchange for the logs and troubleshooting. even the current shift engineer can finish the troubleshooting before 3:00 but the RMA would become two days later. VOC(Voice of Customers)

5 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Anticipated Outcome The RMA cut-off time is extended to an agreed later time No impact on the existing delivery capability Operation In line with the market benchmark Business deal opportunities Market Meet customer expectation Higher customer satisfaction level CSat

6 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Greater China theatre including CN, HK, MO and TW Service Level - NBD and NCD SLA Service Order (RMA) Business Scope

7 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Case Analysis

8 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential RoleDescriptionName/Title Global Executive Sponsor Provide business operation support for the project Dillard Mayers Global Business OwnersProvide business operation support for the project Steve McMahon Michael Strain Local Executive SponsorProvide executive support for the project from local theatre Eliza Zhao Local business ownerProvide business operation support for the project Jennifer Sun Local Project ManagerProvide pre-project business case analysis support Jason Liu VOC Track OwnerFacilitate the VOC sessions for the project Nathan Cao Dennis Lian Capability Track OwnerProvide logistics support and verification for the project Crystal Qi Mike Liu Business Case Analysis Team

9 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Resource readiness (TPL, OM operation) System readiness (Cisco & Vendor tools) Sales Agreement (Sign-off) Supporting teams agreement (Sign-off) – TAC & LSC Business Assumptions

10 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Improve and enhance local customer experience Meet Customer expectation Have Higher Customer Satisfaction Gain market competitiveness in service market Allow more troubleshooting time Expected Benefits

11 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Less transportation buffer time & certainty NBD support coverage shrinkage Business Risks

12 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Strategic Options

13 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential China Cut-off Option 1 – Country level Extension Around 25% of the cities supported in the original 3pm cut-off will be uncovered when cost keeps flat 100% City Coverage Impossible to be met even if we provide hand-carry and dedicated trucks with substantial cost increase Option 2 – Selected City and Product Family System feasibility exploration is being worked on (PFM#14342)

14 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Taiwan Cut-off Hong Kong and Macau Cut-off No coverage impact Coverage 5pm- No additional cost 5pm+Prem RMA cost Cost No coverage impact Coverage Estimated 15% cost increase Cost

15 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Summary

16 © 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Summary RegionReq cut-offOperational ChallengesRecommendationRemarks ChinaOverall 5pmFlat Cost – only approx 70% city coverage remains No ChinaBased on selected PF & Cities 5pm Estimated 5% WH cost increaseYesGTST team is working on PFM# System feasibility Taiwan5pmNo operational impact & cost impact Yes Hong Kong5pmApprox 15% cost increaseYes Macau5pmApprox 15% cost increaseYes

Cisco Confidential 18 © Cisco and/or its affiliates. All rights reserved. Research Highlights – Service offering Blade ServerRack ServerNetworking EquipmentUnified Communication HPHuaweiDellIBMLenovoHuaweiJuniperH3CAvayaHuaweiPolycom Free Warranty Service Level 3 year 5*9*NBD 3 year 5*10*NB D & 7x24 online support 3 year 5*9*NB D 3 year 5*8*NBD & 3 year 7*9 online support 5*10*30C D Return to factory 5*8*20CD Return to factory 5*10*30C D Return to factory 3 year 5*8*NBD Remote Technical Support 3 year 7x24 Online support or 1 year 7x24 Online support 3 year 7x24 Online support or 1 year 7x24 Online support Bundled Services (Bundled services here refers to services sold with hardware together by default. For some vendors and products, bundled service is the same as warranty) 3 year 7*24*4 Same as above 3 year 7*24*4 year 7*24*4 3 year 5*8*NBD Same as above Cut-off Time (only applies to working hour services) N/A 5:00P M N/A6:00PM N/A6:00PMN/A 3:00PM Service Start Time Since online representative make sure it is necessary to provide onsite service Since partner receives customer’ s call Since online representative make sure it is necessary to provide onsite service Documented? All abovementioned services are publicly documented