1. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 1 Financing Your Lifecycle Management Presenter Name Date

2. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 2 The Cisco Capital Difference Equipment Lifespan Equipment Lifecycle Management Summary Financing and Cisco Capital Improve Lifecycle Management Agenda

3. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 3 Wholly-owned Cisco subsidiary since 1996 The captive and leader in Cisco end-to-end financial services Integrated with the Cisco business strategy Aligned with Cisco technology innovation Shared sense of urgency, flexibility Alignment of economic objectives Our Vision To enable Cisco customers to acquire, deploy, protect and refresh technology investments with creative and competitive financing solutions that help maximise cash flow and profitability. The Cisco Capital Difference

4. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 4 © 2008 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-473889_00 4 The industry standard lifespan of network equipment is 3 - 5 years – Yankee Group Shorter IT equipment lifecycles combined with disciplined technology management practices can reduce IT operating expenses by 20.5% – IDC Forrester poll of 441 organisations with 100+ employees: - 87% refreshed performance network equipment between 1 - 4 years - 76% replaced transport equipment in that same time span Gartner modelling suggests optimal refresh lies between 3½ - 4½ years, versus the average 5 - 7 years, to maximise depreciation, price erosion and functionality Organisations that established 3-year lifecycles and dynamic management models realised lower average deployment and retirement costs – IDC Market Trend Lifespan of Networking Equipment

5. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 5 Timing of Optimal Refresh Baseline Price Erosion and Conservative (Zero) Functionality Impact Aggressive Price Erosion and Aggressive Functionality Impact 3 Yrs 4 Yrs 5 Yrs Year 4 Year 6 Year 5 Year 3 Year 2 Year 7 Year 8 Optimal refresh is most likely between three to four years  Changing business dynamics require more functionality Markets, customer needs, competition  Replace existing equipment Age, reliability, interoperability, costly to maintain Factors Affecting Equipment Purchase Modeling by Cisco Capital Optimal Refresh Point Depreciation Period (Yrs)

6. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 6 Acquiring technology to meet business needs and stay innovative Getting your new solution up and running Managing and servicing equipment… Mandatory upgrades increase with deployment lengths and business needs continue or change Complexity of decommissioning with disposal compliant to environment and privacy regulations Equipment Lifecycle Continuous Cycle Required to Meet Business Needs

7. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 7 “A tightly managed IT environment with consistent life-cycle analysis that supports a disciplined equipment renewal process will produce better and more consistent IT functionality at lower total cost across multiple generations of IT equipment.” Leading analysts confirm: “IT leaders strive to balance the ‘capital / labour’ dilemma and risk a ‘buy once, fix forever’ model that wastes skills and resources that could be applied to higher-return initiatives.” “Shorter IT equipment lifecycles combined with disciplined technology management practices can reduce IT operating expenses by 20.5%.” “Organisations that established 3-year lifecycles…realised lower average deployment and retirement costs.” Shorter Lifecycles & Proactive Management Lowers Costs and Improves Productivity

8. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 8 Adopting the Latest Technology can Lower Capital Expenses (CAPEX) $500 $1000 $1500 IntegratedAppliance ISR Deployment Installation One Installation Two Installation Three Installation Four $10k $20k $30k IntegratedAppliance $50k $40k CISCO 3845 NM-ESW IOS FW CME NM-WLC NM-WAAS Device 1 Device 2 Device 3 Device 4 Device 5 Device 6 Device 7 CAPEX savings between 5 - 30% Overlay Appliances Security Appliance Router Switch Wireless LAN Voice Appliance Cisco ISR 3845 with integrated Security, Voice, Wireless, Video, WAN Optimisation and Switch Integrated Services Router WAN/App Optimisation v → Buying individual projects drives up initial outlays by 5-30% → Multiple deployment costs for additional technology → Lengthy recertification for new products

9. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 9 Impact of Ongoing Maintenance & Ops Costs for Equipment $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Cisco Integrated Services Router Competitive Overlay Appliances Revenue Loss Employee Productivity Unplanned Downtime Losses Planned Downtime Losses Maintenance Contracts Facilities (Space, Power, Cooling) Implementation Costs NMS Costs Chart Source: Cisco Total Cost of Ownership (TCO) analysis on previous ISR scenario For modern IT platforms 30% of total cost is acquiring the equipment, 70% is for labour and services to configure, maintain, upgrade, reconfigure and, ultimately, decommission - IDC Over 70% OPEX Reduction! Direct & Indirect Costs

10. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 10 Market Trend Use of Financing to Acquire and Manage Technology Lifecycles © 2008 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-473889_00 10 The most important consideration in evaluating leasing and financing options is that they provide flexibility in establishing a lifecycle management plan. – IDC Financing is used to achieve a 3-4 year equipment refresh lifecycle instead of being locked into a 5-year depreciation schedule that is longer than the equipment’s useful life. – IDC Financing provides options for funding equipment acquisition and as a means to systematically renew technology assets and maintain predictable budgets. – IDC By not integrating operational cost/ performance data with lifecycle replacement planning and lease-v-buy capital analysis, organisations may be incurring 20.5% higher annual costs than necessary to acquire, manage and decommission their IT equipment. – IDC 4 out of 5 US companies use financing to acquire equipment. – ELFA

11. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 11 Financing Technology Can Alleviate Many CxO Concerns Align IT priorities with business initiatives Maximise constrained budgets Assure the success of IT projects Allow for operating flexibility and technology refresh Proactively manage equipment lifecycles Effectively acquire technology and support business goals

12. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 12  Improve and proactively manage equipment lifecycles  Customise for best economics and useful life scenario  End-to-end financing  Flexible terms and options  Aligned with Cisco innovation and technology lifecycle  Lower the total solution cost The decision is not only what to buy, but how to buy. Financing With Cisco Capital Can Make a Difference

13. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 13 -Maximise budgets -Conserve cash -Preserve credit lines -Meet business needs now -Align cost with useful equipment life -Payment options to maximise business benefits (deferral, seasonal, etc.) -Combine services and equipment into one lease -Lock in pricing for multiple years -Flexible refresh and upgrade options -Adapt as needs change -Proper disposal -Save costs of decommission -Reduction of landfills -Simplicity of return Financing with Cisco Capital Improves Management of Equipment Lifecycles

14. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 14 Cisco Hardware/ Software Cisco Maintenance (HW, SW) Professional Services (via VAR) 3-5 Year Lease All Cisco HW/ SW 3-yrs of Maintenance Professional Service Cisco Capital combines product, maintenance, professional services and complimentary third party products into one lease. Total Solution For One Low, Predictable Payment Single Lease Payment Third Party Products

15. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 15 The smarter way to acquire your technology solution *Usual Cisco Terms and Conditions apply, subject to credit approval, not available in all countries. Finance your Cisco solution and benefit from: Finance with Cisco Capital and benefit from: Cash flow conservation Spread costs over time, preserve credit and avoid the need for cash investment Business focus Remove the burden of equipment ownership and disposal One solution, predictable payments Combine hardware, software and services into one financial framework. Lower costs Take advantage of competitive rates and residual values which reduce total cost of ownership Equipment lifecycle management Gain from flexible upgrade and migration options and easy equipment disposal Maximum flexibility Choose payment terms, lengths and End of Lease options including return or outright purchase. More Cisco expertise. More competitive financing. Find out how Cisco Capital can help you maximise the benefits of your financing solution, visit our website: www.cisco.com/go/capital_europe.com

16. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 16 Optimal refresh = shorter lifespan Proactive lifecycle management reduces total cost of ownership and OPEX Successful lifecycle management keeps technology current and can reduce CAPEX Financing can better balance capital and expense budgets Financing provides flexibility required to establish a successful lifecycle management process Cisco Capital offers the most competitive financing for Cisco solutions Summary Thank you

17. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 17 More Cisco expertise. More competitive financing. To find out how Cisco Capital can help you maximise the benefits of your financing solution, visit our website: www.cisco.com/go/capital_europe

18. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 18