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pww.comCisco Systems, Inc. - Special Call - NasdaqGS:CSCO

NasdaqGS:CSCO

Rob Lloyd [Executives] 💬

Here is a detailed summary of what "Rob Lloyd" discussed during the transcript:

  1. Introduction

    • Greeted attendees and introduced himself as responsible for worldwide field operations at Cisco.
    • Highlighted the excitement in the networking industry due to the evolution of computing models, including the current transition to cloud computing.

  2. Role of the Network

    • Emphasized the significance of the network, which has evolved from basic connectivity to becoming a mission-critical platform for various computing models, including the transactional web, social web, and now cloud computing.
    • Mentioned the staggering growth of mobile networks, exemplified by China Mobile reaching 600 million customers.

  3. Industry Debate

    • Noted a debate within the industry regarding the role of the network, questioning its importance despite recent events such as a major data breach.
    • Described two opposing viewpoints:
      • One side believes the network's value should be determined by the cost of its components.
      • The other side values the network's fundamental contribution to innovation and productivity.

  4. Addressing Myths

    • Announced plans to debunk seven myths circulating in the industry, with the help of Mike Rau and Bob Cagnazzi.
    • The first myth, referred to as the "single-purpose myth," suggests that the network is only used for basic connectivity.

  5. Security

    • Addressed the myth that security is an add-on to the network, emphasizing that integrated security is crucial, especially with the proliferation of consumer devices like iPads in the enterprise environment.

  6. Application and Endpoint Intelligence

    • Debunked the myth that the network is application and endpoint ignorant, highlighting the need for the network to adjust performance based on the application and device.
    • Discussed the challenges of managing multiple devices, including smartphones and tablets, in the enterprise network.

  7. Quality of Service

    • Addressed the myth that basic QoS is sufficient, explaining the need for advanced QoS mechanisms to manage rich media applications like video.

  8. Standards and Innovation

    • Debunked the myth that Cisco's innovations are proprietary and not standards-based, citing examples like MPLS and Fibre Channel over Ethernet (FCoE).

  9. Extended Warranty

    • Addressed the myth that limited or extended warranties are a cost-effective solution, emphasizing the importance of proactive support and reliability.

  10. Return on Investment and Investment Protection

    • Debunked the myth that acquisition cost is the only factor in decision-making, discussing the importance of considering the total cost of ownership and return on investment.

  11. Customer Questions

    • Suggested questions that customers should ask to determine if their network is good enough or requires more advanced capabilities.

  12. Introduction of Bob Cagnazzi

    • Introduced Bob Cagnazzi, CEO of BlueWater Communications, and discussed the importance of the network from a customer perspective.

  13. Customer Value

    • Discussed various customer segments, including financial services, public sector, and education, and how the network plays a critical role in these sectors.

  14. Q&A Session

    • Moderated a Q&A session, addressing questions such as:
      • Justifying the value of the network to CFOs under budget constraints.
      • Monitoring and measuring multimedia network performance.
      • Gradual migration from legacy networks.
      • Using a single-vendor solution versus best-of-breed components.
      • Importance of the access layer and LAN switching.
      • Validating vendor claims through proof-of-concept labs.

  15. Closing Thoughts

    • Reiterated the claim that the network is the platform for business productivity and innovation.

    • Concluded the presentation and thanked attendees.

Mike Rau [Executives] 💬

Mike Rau discussed several points during the special call transcript. Here’s a detailed summary of his contributions:

Introduction

  • Unified Access Architecture:
    • The network is evolving towards a unified architecture that integrates wired, wireless, and VPN capabilities.
    • This unified approach simplifies provisioning and management, addressing the need for more connectivity options without increasing headcount or operating expenses.

Debunking the Single-Purpose Myth

  • Unified Access:

    • The access layer is broader than just an Ethernet switch; it includes wireless infrastructure and VPN capabilities.
    • Enterprises require a unified strategy to manage the proliferation of devices and connectivity options.
    • Unified access delivers total cost of ownership (TCO) benefits.

  • Integration of Other Networks:

    • Building control infrastructure and energy management systems are being integrated into the network.
    • Unified access infrastructure supports innovation and new services.

Security

  • Integrated Security:

    • Modern routers and switches include advanced security features like firewalls, intrusion prevention systems (IPS), and virtual private networks (VPNs).
    • The network plays a crucial role in managing security for consumer devices like iPads and smartphones.
    • Security policies can be applied to devices detected on the network.

  • Cloud Security:

    • Security must extend into the cloud to protect infrastructure and applications hosted there.
    • Cisco’s integration of acquisitions like IronPort and ScanSafe supports a comprehensive premise-to-cloud security architecture.

Application and Endpoint Intelligence

  • Endpoint Intelligence:

    • Retailers are opening up public wireless access, requiring endpoint intelligence to ensure compliance with security requirements.
    • Enterprises need to control what smartphones and tablets can do on their networks.

  • Application Intelligence:

    • Acceleration and compression services are becoming essential for optimizing wide area network performance.
    • Advanced intelligence in routers helps prioritize and deliver optimal performance for applications.

Quality of Service

  • Advanced QoS Mechanisms:
    • Basic Quality of Service (QoS) is insufficient for managing large-scale video deployments.
    • New QoS mechanisms, such as mission control, are needed to manage video infrastructure.
    • Troubleshooting capabilities are also crucial for video reliability.

Standards and Innovation

  • Standards-Based Plus:
    • Cisco leads in developing innovative technologies that later become industry standards.
    • Examples include Multi-Protocol Label Switching (MPLS) and Fibre Channel over Ethernet (FCoE).
    • Cisco works closely with standards bodies to ensure multi-vendor interoperability.

Limited Lifetime Warranty

  • Beyond Basic Warranty:
    • Basic warranties often cover only basic hardware replacement.
    • Cisco offers proactive services and network management solutions to prevent downtime and improve reliability.
    • Proactive support is crucial for mission-critical networks.

Investment Protection and Return on Investment

  • Long Lifecycle:
    • Cisco products are designed for a long lifecycle, ensuring investment protection through software enhancements and hardware upgrades.
    • Next-generation networks provide platform capabilities that enable new business models and cost savings.

Questions to Test Network Readiness

  • Video Readiness:
    • Customers should assess their network’s ability to support large-scale video deployment.
  • Security Strategy:
    • Customers should evaluate their network’s ability to prevent vulnerabilities introduced by consumer devices.
  • Mobility Strategy:
    • Customers should consider their strategy for delivering services to mobile users.
  • Return on Investment:
    • Customers should explore how the network can drive ROI and support new business models.
  • Resiliency Strategy:
    • Customers should consider adding resiliency capabilities to improve reliability and prevent downtime.

These points highlight Mike Rau’s insights on various aspects of networking, including unified access, security, application intelligence, QoS, standards, and investment protection.

Robert Cagnazzi [Former Chief Executive Officer] 💬

Here is a detailed summary of Robert Cagnazzi’s statements during the Cisco Systems, Inc. special call on April 27, 2011:

Robert Cagnazzi - Former Chief Executive Officer

Introduction

  • Appreciates the better weather in San Jose compared to New York.

Customer Perspective on Networks

  • Customers view the network as mission-critical rather than just a service or good enough.
  • BlueWater Communications offers lifecycle services around networking, video, collaboration, virtualization, and cloud computing.
  • Financial services clients require a bulletproof network due to the high cost of downtime.
  • Public sector clients struggle with reduced budgets and require a network that supports uptime and security.
  • Education clients (K-12 and universities) need to leverage technology to enhance education services and compete for students.
  • Media clients anticipate an explosion of endpoints and rich services, necessitating a mission-critical network.

Importance of Rich Media and Video

  • Confirms the increasing importance of the network in handling rich media and video in enterprise networks.

Role of the Network in Private Clouds

  • Emphasizes the integration of the network with compute and storage in private cloud environments.
  • Discusses the success of VCE and Vblock solutions, which require a robust network to manage services.
  • Notes the reluctance to implement private clouds on a "good enough" network.

Virtual Desktop Environments

  • Highlights the importance of the network in virtual desktop environments, ensuring performance and security.
  • Explains the benefits of virtual desktops, including improved security and data protection.

Closing Thoughts

  • Reiterates that "good enough" is not sufficient for mission-critical networks.
  • Stresses the importance of considering total cost of ownership, return on investment, and agility.
  • Affirms Cisco's leadership in providing mission-critical networks that meet clients' demands.

Q&A Session

  • Justifying Network Value to CFOs
    • Suggests presenting objective measurements of total cost of ownership and discussing the value of uptime.
    • Mentions the availability of technical resources and the long-term viability of vendors.
  • Legacy Equipment Migration
    • Recommends a gradual migration approach, identifying upgrade paths based on desired services.
    • Supports moving toward a homogeneous Cisco network for cost and manageability benefits.
  • Commodity Access Layer
    • Disagrees with viewing the access layer as a commodity, emphasizing the need for mission-critical capabilities.
    • Highlights the importance of management, security, and innovation in the access layer.
  • Network as a Platform

    • Confirms the network's role as a platform for delivering services and enabling business productivity.

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