Marketing - The Network

Cisco FY ’03 Strategy for Small- and
Medium-Sized Business Market
Press Contact:
Peter Alexander
Vice President of Marketing
Worldwide Commercial Market Segment
George Paris
P: (408) 526-7740
E: gparis@cisco.com
1
Agenda
• Current SMB Climate and Market
• Cisco in SMB Market
• Strategy FY ’03
© 2002, Cisco Systems, Inc. All rights reserved.
2
SMB Climate Summary
• Growth in spending
• Security, availability, and operating
cost are key functional issues
• Productivity, user satisfaction, and
ROI are key business issues
• Buyers want solutions not boxes
• Not commoditizing
© 2002, Cisco Systems, Inc. All rights reserved.
3
SMB Networking Priorities in 2003
2.54
VoIP
2.88
Wireless/Mobility
3.73
Current/New Apps.
4.32
Increased Network Security
4.14
Increased Availability or Reliability
3.95
Operating Cost Reduction
4.03
Disaster Recovery/Business Continuity
3.39
Network Architecture
3.94
Link Remote Workers to Intranet
0
Source:
Source: Gartner
Gartner Group
Group 2002
2002
© 2002, Cisco Systems, Inc. All rights reserved.
1
2
3
4
1 = Not Important; 5 = Very Important
5
4
The SMB Networking Market
16
14
33%
CAGR
12
$B
10
8
9%
CAGR
6
4
2
0
FY00
FY01
Switching
Switching &
& Routing
Routing
FY02
FY03
FY05
IP
IP Telephony,
Telephony, Security,
Security,
Wireless/Mobility
Wireless/Mobility
Consolidated
Consolidated Source:
Source: Dell'Oro,
Dell'Oro, Synergy,
Synergy, Philips
PhilipsInfotrack,
Infotrack, IDC,
IDC, Instat/MDR
Instat/MDR
© 2002, Cisco Systems, Inc. All rights reserved.
FY04
5
SMBs Want “Whole” Offering
Standards
Standards Additional
Additional
and
and
Software
Software
Procedures
Procedures
Partnerships
Partnerships
and
and
Alliances
Alliances
Training
Training
Additional
Additional
Core
==
and
and Support
Support Core
Hardware
Hardware Delivered
Delivered
Offering
Offering
Through
Market
Through
Market Leaders
Leaders
Systems
Systems
Vertical-Focused
Applications
Vertical-Focused
Applications
Networks
Networks
Integration
Integration
Trusted
Trusted Advisors/Incumbents
Advisors/Incumbents
Installation
Installation
Industry
and
Industry Affiliations
Affiliations
and
Debugging
Debugging
Platform
Platform and
and Connectivity
Connectivity
Standards
Standards
Source:
Source: Gartner
Gartner Group
Group 2002
2002
© 2002, Cisco Systems, Inc. All rights reserved.
6
SMB Market Forecast FY ’03
• Expert channels lead SMB market
• DMRs expand low end
• Intelligent network solutions important
• IP telephony and wireless mainstream
• SP managed services grow
• Cisco grows market leadership
© 2002, Cisco Systems, Inc. All rights reserved.
7
Cisco History in SMB Market
Catalyst 3500
Introduced
First Gigabit
Stacking
System
Cisco
Founded
at
Stanford
1984
Grand
Junction
Networks
Combinet
#1 10-Mbps
Ethernet
Switches
1995
© 2002, Cisco Systems, Inc. All rights reserved.
Catalyst® 2900
Introduced
2500 ships
1M units
1997
SOHO
Router Share
>50%
Cisco #1 in
Desktop
Switches
HighestDensity Fast
Ethernet
Switch
1999
Acquisitions
Aironet®,
InfoGear,
Radiata,
CAIS
Router Share
90% Low
End; 77%
SOHO
ICS 7750
E-Services
Platform
Ships
1600
Shipments
Hit 1 M Units
2000
R&D: 17-18%
(Companywide)
Commercial
Technology:
Telephony:
ICS7750
Mobility:
3200 ships
802.11a port
Security:
PIX Firewall
2002
8 8
Cisco Market Position
Cisco
Cisco
Current
Current
Market
Market Share
Share
in
in SMB
SMB
33%
38%
71%
Other 29%
Immediate
Opportunity
Consider
Consider Cisco
Cisco
as
as Primary
Primary
Network
Network
Equipment
Equipment
Vendor
Vendor
Development
Focus
Source: Gartner 2002
© 2002, Cisco Systems, Inc. All rights reserved.
9
Cisco SMB Strategy FY ’03
Cisco strategy for Small and
Medium-Sized Businesses is
to deliver Cisco expertise,
solutions, and brand to help
customers realize strategic
value that will accelerate their
business progress.
© 2002, Cisco Systems, Inc. All rights reserved.
10
Cisco Commercial Strategy FY ’03
© 2002, Cisco Systems, Inc. All rights reserved.
11
Cisco SMB Strategy FY ’03
© 2002, Cisco Systems, Inc. All rights reserved.
12
Expertise
NEW!
• Tools and Educational Resources
Cisco
Cisco Internet
Internet Business
Business Roadmap
Roadmap
SMB
SMB online
online community
community
Brand
Brand partnerships
partnerships advise
advise the
the SMBs
SMBs
NEW!
• Routes to Market
VARs—Focus
VARs—Focus on
on specializations
specializations
Direct
Direct market
market retailers
retailers
Service
Service provider—Managed
provider—Managed service
service programs
programs for
for SMBs
SMBs
Solution
Solution partners—Ecosystem
partners—Ecosystem
© 2002, Cisco Systems, Inc. All rights reserved.
13
Cisco Internet Business Roadmap
Driving Demand with
Channel Partners:
Step #1: Identity Assessment
• A global e-business solutions
Internet Identities
•• Assessment
Assessment takes
takes 15
selling program
minutes to complete
• Facilitates consultative sales, “My Roadmap”
“Trusted Advisor” status
• Solutions training, tools, &
marketing materials
Prioritized List of E-Business
Solution Recommendations
••
Approximately 55–7
–7
questions in step
#1 “Internet Identities”
Other
••
Queries your views on the
the
Internet
••
Assigns you an Internet
Identity label
Internet Roadmap Network Blueprint
11
© 2002, Cisco Systems, Inc. All rights reserved.
• One place for SMB market
solutions
• Links to other resources
Solution guides
12
© 2002, Cisco Systems, Inc. All rights reserved.
Business scenarios/case studies
White papers
Application vendors information
Reseller/consultant
© 2002, Cisco Systems, Inc. All rights reserved.
© 2002, Cisco Systems, Inc. All rights reserved.
14
14
What’s New in Cisco Internet
Business Roadmap?
!
W
E
N
Vertical
Vertical
Market
Market
Content
Content
(11
(11
markets)
markets)
!
W
NE
!
W
NE
Turnkey
Technology
Technology Turnkey
Marketing
Solutions
Solutions Marketing
Kits
Kits for
for
First:
First:
the
the
Security
Security
Channel
Channel
!
W
NE
Demand
Demand
Generation
Generation
Campaign
Campaign to
to
Resellers
Resellers &
&
End
End Users
Users
How
How Partners
Partners
Use
Use the
the
Modular
Modular
Program:
Program:
•• Solutions
Solutions
training
training
•• Education
Education
Channel
Channel program:
program: www.cisco.com/go/cibrchannel
www.cisco.com/go/cibrchannel
Assessment
Assessment tool:
tool: www.cisco.com/go/cibr
www.cisco.com/go/cibr
•• Marketing
Marketing
•• Consultation
Consultation
•• Planning
Planning tool
tool
•• Portfolio
Portfolio
showcase
showcase
•• Door
Door opener
opener
w/customers
w/customers
© 2002, Cisco Systems, Inc. All rights reserved.
15
Turnkey Marketing Kit Examples
(for example, direct mail, e-mail,
telemarketing scripts, etc.)
© 2002, Cisco Systems, Inc. All rights reserved.
16
16
SMB Community Home Page
Solution Topics
& Tools
www.cisco.com/go/smb
Discussion Boards
Learning Center:
Library of White
Papers & Tools
End User
Polling
VODs
TechTalks
Ask the Expert
© 2002, Cisco Systems, Inc. All rights reserved.
17
17
New Routes to Market—
Direct Marketing Retailers
Order from an Online Retailer
Order Direct from Cisco. For customers with an existing Cisco
Direct Purchasing Agreement who order using Cisco's Internet
commerce tools.
Order Through a Local Cisco Partner. For customers looking for
A Cisco Partner who will aid in the network design, consultation,
installation and support services.
Insight description
Order Through an Online Retailer. For customers at small and
medium sized businesses who are comfortable installing their own
equipment can easily order online from one of Cisco's authorized
Online Retailer stores.
© 2002, Cisco Systems, Inc. All rights reserved.
18
Partnerships:
bCentral Networking Center
© 2002, Cisco Systems, Inc. All rights reserved.
19
Cisco SMB Strategy FY ’03
© 2002, Cisco Systems, Inc. All rights reserved.
20
Cisco
SMB Network
Solutions
The Network
is the Foundation
E-procurement
Sales
Force
Automation
Financial
Management
Web Hosting +
e-Commerce
Workforce
Optimization
Quality Of Service Availability Security
Blueprints
Security
Foundation
Mobility
Telephony
Network
Platforms
System
Intelligent Switching
Intelligent Routing
Intelligent SP WAN
Web Marketing
Ease of Use/ Manageability
Customer
Care
Software
© 2002, Cisco Systems, Inc. All rights reserved.
21
21
IP Telephony Success
inChord Communications
Marketing
Marketing communications
communications leader
leader
500
500 employees
employees
99 offices
offices worldwide
worldwide
• Adopted Cisco IP Telephony solution
Simplify
Simplify management
management network
network operations
operations
Lower
Lower cost
cost of
of network
network ownership
ownership
Enhance
Enhance business
business commitment
commitment to
to create
create
strategic
strategic value
value
© 2002, Cisco Systems, Inc. All rights reserved.
22
Wireless LAN Success
City of Seal Beach Police Dept.
• 100+ officer dept.
• Combines streaming
video with broadband
wireless over a robust,
secure network
infrastructure
• The world’s first wireless
IP video surveillance
system
© 2002, Cisco Systems, Inc. All rights reserved.
Results: Faster
response saves
lives and resources
23
SP Managed Services
•
Sprint
•• Sprint
Sprint
-Managed Router Service with Dedicated Internet Access
® Firewall
––-Managed
Managed
Router
Service
IOS
Managed
Router
Service with
with Dedicated
Dedicated Internet
Internet Access
Access
Site-to-Site
IPsec-based VPN
––-Managed
Managed
Managed Cisco
Cisco IOS
IOS®® Firewall
Firewall
•
AT&T
–– Managed
Managed Site-to-Site
Site-to-Site IPSec-based
IPSec-based VPN
VPN
–Managed Firewall Service – Premise Based (Cisco PIX® Option)
–Managed Intrusion Detection
•• AT&T
AT&T
–––Managed
Managed
Firewall
ManagedRouter
Firewall Service
Service –– Premises
Premises Based
Based (Cisco
(Cisco PIX®
PIX® Option)
Option)
–Managed Internet Access
–– Managed
Managed Intrusion
Intrusion Detection
Detection
–Managed Site-to-Site VPN
–– Managed
Managed Router
Router
–Managed Wireless LAN
•
•
–– Managed
Managed Internet
Internet Access
Access
CBeyond
–––Beyond
Managed
Site-to-Site
VPN
Managed
Site-to-Site
VPNInternet, Local/Long Distance Telephone and Toll Free
Voice
w/High Speed
––Service
Managed
Managed Wireless
Wireless LAN
LAN
SBC
•• CBeyond
–EssentialSERV IP Telephony Services for the Cisco ICS7750
CBeyond
–– Beyond
Beyond Voice
Voice with
with High-Speed
High-Speed Internet,
Internet, Local/Long
Local/Long Distance
Distance
Telephone
and
Toll
Free
Service
Telephone and Toll Free Service
© 2002, Cisco Systems, Inc. All rights reserved.
24
Cisco SMB Strategy FY ’03
© 2002, Cisco Systems, Inc. All rights reserved.
25
Brand—Cisco Ranked No. 16
Interbrand Annual Survey
1
2
3
4
5
6
7
8
9
10
11
12
Coca Cola
Microsoft
IBM
General Electric
Intel
Nokia
Disney
McDonald's
Marlboro
Mercedes
Ford
Toyota
© 2002, Cisco Systems, Inc. All rights reserved.
($ Billion)
$ 69.6
64.1
51.2
41.3
30.9
30.0
29.3
26.4
24.2
21.0
20.4
19.5
13 Citibank
14 Hewlett-Packard
15 American Express
($ Billion)
18.1
16.8
16.3
16 Cisco Systems
16.2
17
18
19
20
21
22
23
24
25
16.1
15.1
15.0
14.4
13.9
12.8
11.5
11.4
11.2
AT&T
Honda
Gillette
BMW
Sony
Nescafe
Oracle
Budweiser
Merrill Lynch
26
Cisco Brand Value Chain
Business
Model
SMB
Leasing &
Financing
WorldClass
Service and
Support
Customer
Satisfaction
© 2002, Cisco Systems, Inc. All rights reserved.
Global
Reach
Brand
Brand Value
Value Chain
Chain
Industry
Influencers
Training
Ecosystems
R&D
27
SMB Leasing & Support Overview
Cisco SMB Leasing
100% financing
–– Hardware
Hardware
–– Software
Software
–– Service/support
Service/support
–– Aggressive
Aggressive and
and flexible
flexible
terms
terms
–– Aggressive
Aggressive trade-up
trade-up
programs
programs
© 2002, Cisco Systems, Inc. All rights reserved.
Cisco Services Portfolio
–– Technical
Technical Assistance
Assistance
Center
Center –– 24x7
24x7
–– Online
Online interactive
interactive tools
tools
–– Software
Software downloads
downloads -Cisco
Cisco IOS
IOS Software
Software updates
updates and
and
upgrades
upgrades
28
Cisco SMB Strategy FY ’03
Conclusion
© 2002, Cisco Systems, Inc. All rights reserved.
29
&
30