Cisco Strategy: Seeds of Growth Jayshree Ullal Senior Vice President / General Manager

UBS EIGHTH ANNUAL GLOBAL COMMUNICATIONS CONFERENCE JU_UBSWarburg_111 703

© 2003 Cisco Systems, Inc. All rights reserved.

1

Required GAAP Reconciliation and Forward-Looking Statements GAAP RECONCILIATION During this presentation references to financial measures of the Company will include references to pro-forma financial measures. Cisco provides a complete reconciliation between GAAP and proforma financial information on our website at www.cisco.com in the “Investor Relations” section www.cisco.com/go/gaap_recon

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

FORWARD-LOOKING STATEMENTS This presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These projections or statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see the Company’s Annual Report to Shareholders and its filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, each as it may be amended from time to time, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or forwardlooking statements

2

Agenda • Networking Trends • Cisco Datacenter • Cisco Advanced Technologies • Home Networking • Cisco SP/Enterprise Linkage • Summary

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

3

From Networking Connectivity

LAN

JU_UBSWarburg_111703

WAN

© 2003 Cisco Systems, Inc. All rights reserved.

4

To IP Evolution

Scale Services

Scale Networks Scale Devices

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

5

Cisco Device Networked Applications

Mobile

VoIP Scale Applications

SAN

Optical

Scale Networks Scale Devices

CDN JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

LAN MAN WAN 6

Data Center of the Future

Internet ISP-A

ISP-B

Catalyst Gigabit Switches Content switching module Storage switching

IDS/Security Primary Data Center

Secondary Data Center

Data Center Networking JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Optical Switch 7

Cisco Data Center Evolution

Catalyst

Connectivity

JU_UBSWarburg_111703

IOS L4-7 svc

Networked Services

© 2003 Cisco Systems, Inc. All rights reserved.

Virtualized Blades/ Web Services

Networked Applications

8

Enables On-Demand Computing • Resource Virtualization Improved utilization of resources

• Dynamic Provisioning Networking, storage, and server components allocated quickly and seamlessly

• Network Services QoS NBAR Security Storage virtualization Content and path optimization

• Network Features Jumbo Frames Stacking/Mgmt consolidation Resiliency Device Discovery

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Virtualized Firewalls Switches VLANs

Virtualized L4-L7 Services

Virtualized CPU Resources

VSANs

Replication and Backup Services

Storage Pooling and Virtualization

Virtualized Storage Resources

9

Next Generation Storage Networking Universal Access to Data and Storage Network Storage Pool Storage Appliances

Heterogeneous Servers

IP Network

NAS

Storage Router SAN

Optical Metro

Storage JU_UBSWarburg_111703

Tape

© 2003 Cisco Systems, Inc. All rights reserved.

Mainframe

Storage 10

Storage Linkage • Cisco Multilayer Intelligent SAN FC

Scales with the Grid Enables Global Data Access and Protection

• Integration of Intelligent Services into the Network Simplifies Data Access Across the Grid Simplifies Resource Sharing and Management Enables En hanced

JU_UBSWarburg_111703

Grid Servic es over Tim e

© 2003 Cisco Systems, Inc. All rights reserved.

FC FC

FC FC FC

FC

Security

Multi Multi-Protocol

FC FC

Globally Scalable Intelligent SAN Fabric WAN

Virtual SANs Cisco

Replication And Backup Services

Cisco

Storage Pooling and Virtualization

11

Evolution of Data Center Serviceware Layer

Cluster Mgmt

Cluster Mgmt

Virtualized Mgmt

Middleware Layer

Data Middleware

Compute Middleware

Web Services

Blade Servers

Compute-Network Farms

Resource Layer

Legacy Servers

Network Layer

10/100/1000 Ethernet

1990 JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

2000

GigE/10GigE/40GigE/100GigE 2G/10G FC

2010 12

Cisco Network Security Secure Secure Connectivity Connectivity

VPN VPN

Perimeter Perimeter Security Security

Intrusion Intrusion Protection Protection

Firewalls Firewalls

Intrusion Intrusion Detection Detection Scanning Scanning

Identity Identity

Security Security Management Management

Authentication Authentication

Policy Policy

• Integration—into network infrastructure • Inter-linkage—across components • Secure extensions—wireless and voice JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

13

Cisco’s Comprehensive IP Telephony Call Control BTS 10200

PGW 2200

MCS 7835

Conference Manager IP Contact Center Personal Assistant

Switches

2400-SRST

4000 Series

Endpoints

Applications

ICS ICS 7750 7750

3550 Series

6000 Series

Unified Messaging

Gateways

2950 Series

AS5400 7900 Series SoftPhone ICS 7935

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

2400/2600/ 3600 Series

Catalyst 4200

MGX 8850

14

Multiple Generations of IP Phones Cisco IP Phone 7960G Cisco IP Conference Station 7935 Cisco Wireless IP Phone 7920

Cisco IP Phone 7940G

Cisco IP SoftPhone

Cisco VG248 Analog Phone Gateway

Cisco IP Phone 7910G Cisco IP Phone 7905G/ Cisco IP Phone 7912G

Cisco ATA 186/188 Cisco IP Phone 7902G JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

15

SWAN Architecture Provides:

Centralized Servers

Security AND

ACS

Scalability

WLSE

Switches & Routers

AND

Network Management AND

Ease of Deployment AND

Voice + Data

Wireless Access Points

AP1200

AP1100

AND

Mobility ALL AT THE SAME TIME! NO TRADEOFFS! JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Cisco-brand & Cisco-Compatible Clients 16

Cisco Access Branch Intelligent Information Network

Multi-Protocol Routing, Access Control, QoS

IOS IOS Firewall/ Firewall/ Encryption Encryption

Content Delivery

Hybrid Keysystem Voice—VoFR, VoIP

Advanced Security

Low Density Switching IP Telephony JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Voice Applications

17

Teleworker/Home/Road Warrior

VPN

Enterprise VPN

Service Provider

IT-Managed Teleworker

Mobile Road Warrior

• Cisco access router • Wireless LAN • VPN • Linksys

Home

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

18

Today’s Home

Separate Networks, Content, and Entertainment Systems

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

19

Future Home

Integrated Networks, Content, and Entertainment Systems

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

20

Evolution of Speed to Service

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

21

Network as a Service Delivery Platform

Security

• Single point of control • Ubiquity of implementation • Services are end-to-end • Cost advantage

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Storage

NetworkEmbedded Services Voice

Wireless

Packet Layer Services

22

New Service Provider Reality Past: Circuit

Present: Hybrid

Future: Packet

Mobile Leased Line

Mobile

PSTN

FR / ATM PSTN Optical

Dial-Up Internet

JU_UBSWarburg_111703

Broadband Services

© 2003 Cisco Systems, Inc. All rights reserved.

HighSpeed Internet

Mobile Consolidated Packet Architecture Broadband

PSTN

23

New Enterprise Reality Past: Separate Security Points

Present: Hybrid Future: Convergence

WLAN

Storage Area Networks LAN

Video Conferencing

Data

Voice

Video

Storage

IPTel / Voice Security

WLAN

LAN and WAN

Secure Converged Network

Video

WAN SAN

Voice Network Wired JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Wireless 24

Summary

Data Center

Teleworker/Home Road Warrior Service Provider

Next Generation Campus

Enterprise Intranet Full Service Branch Office

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

Internet Internet

Home Networking

25

JU_UBSWarburg_111703

© 2003 Cisco Systems, Inc. All rights reserved.

26