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In Collaboration with Intel®

10G & 40G Market Transitions

Craig Maynard

RSM Data Center Switching APJ

October 29, 2014 In Collaboration with Intel®

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5 YEARS

2.5

YEARS

Faster SERVER Refresh Cycle

2-3 YRS

NETWORK refresh cycle of 5 yrs. should

cover two server refresh cycles

Intel Haswell

36 Cores /Server

(2 Sockets x 12

Cores)*2

10G LOM

New Server Platforms

Enabling Higher I/0 Throughput Modern Applications

Increasing East-West Traffic

DATA CENTER

IP TRAFFIC

GROWTH

25% CAGR

(2012-2017)*3

*1 IDC Worldwide Virtual Machine 2013-2017 Forecast *3 Cisco Global Cloud Index: Forecast (2012-2017)

HYPERVISOR

VM VM VM VM VM VM

Virtual Machine Density

Driving I/0 Performance

36 VMs/ Linux Server*1

*2 Intel Xeon E5 Spec

Market Trends Driving 1GE -> 10GE 10GE Lan On Motherboard, VM Density, Big Data

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Source: Crehan Research Jul’13 ; 10 and 40G port growth, DC Addressable market

Significant shift from 1G to 10G access

0

1000

2000

3000

4000

5000

6000

7000

2013 2014 2015 2016 2017

1 Gps Ethernet 10 Gps Ethernet 40 Gps Ethernet 100Gps Ethernet

40G Market will quadruple in next 4 years

Performance Journey

FY15 DC Switching APJC*

Modernize Data Centers Drive 1G->10G Server-Access Transition

Drive 10G->40G->100G Aggregation Transition

Migrate legacy Catalyst installed-base

Migrate aging Nexus 2K/5K/7K platforms

$3.8B+ Market Size (TAM)

10G Fixed: $1,646M and 40G Modular: $284M opportunity

21% Y/Y Market Growth

DC WW Switching Momentum 50,000+ NX-OS customers

77.2% market share in 10G Purpose-built Fixed Managed Switching

73.5% market share in 40G Modular Switching

* Source: IDC LAN Switching Forecast Q2 CY2014

10G/40G Market Transition = Opportunity !!

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100 150 200 250 300

ACI

Traditional Network

Time (s)

Case Study –Big Data Analytics

Based on common network load and link failure scenarios

Congestion Management

60% 60%

90%

Network Innovations

Dynamic Load Balancing

Dynamic Packet Prioritization

30% reduction

in application

completion time

Network Utilization

Fabric Innovation

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SAVES TENS OF MILLIONS OF DOLLARS

WHEN UPGRADING TO 40G SWITCH

INFRASTRUCTURE (99% OF DATA

CENTERS GLOBALLY)

10G 40G 40G BiDi Optics

40G Over 10G Multimode Fiber

Transition to 40G

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0% 5% 10% 15% 20%

OIP

Nexus NAB

VIP + Accelerator

Partner ImplementationServices

SeedIT and Starter Kits Promotion

Seed first-time customers of Nexus 9300 and 9500 through aggressive one-time only discounts

Limited to purchase of one (1) unit of an eligible bundle/SKU per customer

Highly Discounted Nexus 9000 Starter Kit, End of RoW Bundle and ACI Starter Kit

Nexus NAB (New Account Breakaway)

Partners are incentivized for hunting new Nexus customers with significant discount levels for the entire Nexus deal

VIP-24 Rebate Uplifts for Targeted Nexus SKUs

Targeted Nexus 10G top-of-rack and 40G Aggregation SKUs are eligible for 50% or more rebate uplifts for VIP-24 (1HFY15)

Partner Incentives

Approx. Incremental Margin Contribution

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There is a Market Transition 1G to 10G at the Access Layer 10G to 40/100G At the Aggregation / Core

Cisco has differentiated solutions to address this Leverage the Programs available to help you address this Opportunity

Key Take Away

Thank you.