Cisco Systems, Inc. - Special Call - NasdaqGS:CSCO

NasdaqGS:CSCO

Rob Soderbery [Executives] 💬

Rob Soderbery made the following points during the Cisco Cloud Connected Solution Press Conference:

Introduction and Vision:
- Welcomed attendees and thanked them for participating.
- Aimed to present a vision for connecting users to the cloud with confidence.
- Planned to share new technology announcements, products, and architectures.
Market Transitions:
- Highlighted that Cisco focuses on key market transitions critical for customers and clients.
- Noted that mobility, collaboration, and cloud are among the most important market transitions.
- Mentioned Cisco's early adoption and leadership in these areas, including BYOD, rich media, and social collaboration.
Impact on Businesses:
- Emphasized that the impact of these market transitions is not just on technology or IT, but on businesses.
- Discussed various business environments that are being transformed by these trends, including knowledge worker environments, retail, hospitality, public sector, and industries like mining and manufacturing.
IT Challenges:
- Explained that IT faces challenges in helping businesses through these transitions and delivering infrastructure solutions.
- Focused on the cloud transition and Cisco's Cloud Intelligent Network strategy.
Cloud Network Survey Results:
- Mentioned that 37% of users considered the cloud-ready WAN to be the most critical infrastructure component.
- Highlighted that 60% of users were concerned about performance, 66% about security and policy, and 60% about manageability.
- Noted that 39% of users would rather undergo unpleasant tasks than address network challenges associated with cloud deployment.
User Challenges:
- Discussed challenges related to traffic patterns, visibility, and control, including the "hairpinning effect."
- Explained how a transaction might inefficiently traverse the WAN, impacting performance and increasing costs.
Transition to Praveen Akkiraju:
- Set up the problem and transitioned to Praveen Akkiraju, asking what Cisco plans to do about the challenges discussed.

Inbar Lasser-Raab [Executives] 💬

Inbar Lasser-Raab made several comments during the Cisco Cloud Connected Solution Press Conference. Here’s a detailed summary:

Introduction

Welcome and Agenda:
- Welcomed everyone and thanked them for joining the Cisco Cloud Connected Solution Press Conference.
- Mentioned that the conference is being broadcast live from Cisco Live in San Diego.
- Announced a packed agenda, starting with Cisco executives introducing the Cisco Cloud Connected Solutions.
- Noted that the executives in charge of the development of the solution would be available for questions.
- Mentioned that there would be a panel of customers and partners who have been involved in the development of the solution, followed by an opportunity for questions from the audience.

Introductions

Introduction of Rob Soderbery:
- Invited Rob Soderbery, Senior Vice President and General Manager for the Enterprise Networking Group, to discuss why cloud and why now.
- Introduced herself as Inbar Lasser-Raab, Senior Director of Marketing for the Borderless Network.

Discussion Points

Survey Context:
- Added context to the Cloud Network Survey conducted in April 2012, mentioning that it was done in 13 countries around the globe and surveyed 1,300 people.
- Described the survey as “pretty exhaustive.”
Cloud Connect Solution Summary:
- Summarized the findings that 37% of customers in the survey identified the cloud-ready WAN as the most critical infrastructure component for cloud transitions.
- Highlighted that the biggest challenges for IT organizations in supporting cloud transitions are security, application performance, and manageability.
- Summarized the Cloud Connected Solution as addressing these challenges with three major elements:
  - New platforms, with the flagship platform being the CSR (Cloud Services Router).
  - Enhanced software enhancements like application visibility and control, AppNav for better performance of WAAS (Wide Area Application Services).
  - Cloud Connectors, some developed by Cisco and others by partners through open APIs.

Panel Discussion

Panel Introduction:
- Invited the panelists to join the discussion, including representatives from Ricoh, Baker Hughes, BT, and VMware.
- Provided brief introductions for each panelist:
  - Daisuke Kubota from Ricoh.
  - Euan Cameron from Baker Hughes.
  - Jeff Schmidt from BT.
  - Allwyn Sequeira from VMware.
Panel Questions:
- Asked Daisuke Kubota about the problems Ricoh was trying to solve for its customers and how the Cisco Solution helped.
- Asked Euan Cameron about Baker Hughes’ transition to the cloud and the impact of the Cisco solution on their service.
- Asked Jeff Schmidt about the customer value of BT’s new voice, data, and security services and how the Cisco Cloud Connected Solution helped differentiate their services.
- Asked Allwyn Sequeira about how the Cloud Connected Solution adds value to the VMware solution and how the CSR brings greater value to enterprise customers and cloud providers.

Closing Remarks

Q&A Session:
- Opened the session to questions from the audience, inviting Rob Soderbery and Praveen Akkiraju to join the panel.
- Provided instructions for asking questions, including using a microphone for those watching via IPTV.
- Mentioned that the Cloud Network Survey was available for reference.
- Summarized the key message that the Cisco Cloud Connected Solution aims to help connect users to the cloud with the confidence of a private network.

Praveen Akkiraju [Executives] 💬

Praveen Akkiraju discussed several key points related to Cisco's approach to addressing the challenges faced by enterprises in their transition to cloud computing:

Highlighting Key Challenges:
- Praveen underscored the challenges enterprises face due to the proliferation of devices and the centralization of applications into the cloud.
- He noted that the legacy hub-and-spoke network architecture is not equipped to handle the new traffic patterns driven by cloud adoption.
Introduction of Cisco Cloud Connect Solution:
- Praveen introduced the Cisco Cloud Connect Solution, which is designed to address the challenges of cloud migration by providing an integrated end-to-end open architecture.
- He emphasized that this solution combines best-in-class routing, application optimization, and network services.
Cloud-Ready Platforms:
- Praveen discussed the portfolio of cloud-ready platforms, including enhancements to the ISR G2 and ASR 1000 platforms.
- He highlighted the introduction of the Cloud Services Router (CSR 1000v), which enables secure and intelligent cloud connectivity.
Network Services:
- Praveen explained the capabilities of the platform, such as Application Visibility and Control (AVC), which helps enterprises understand and influence application performance.
- He mentioned the introduction of AppNav, an innovative traffic steering mechanism for WAN optimization platforms.
Cloud Connect Framework:
- Praveen described the Cloud Connect framework, a software component that runs on ISR G2 platforms and interacts with cloud services to optimize the user experience.
- He provided examples of how Cloud Connect works in practice, including its role in ensuring survivability and enhancing user experience.
Open Architecture:
- Praveen stressed the open architecture of Cloud Connectors, which allows cloud service providers to develop their own connectors and host them on Cisco platforms.
Customer and Partner Ecosystem:
- Praveen acknowledged the strong endorsement of the Cloud Connect Solution by a diverse range of customers and partners.
- He expressed Cisco's commitment to enabling service providers and partners to develop their own Cloud Connectors and integrate with broader cloud frameworks.
Future Roadmap:
- Praveen indicated that Cisco plans to continue adding to the portfolio of network services and Cloud Connectors to further enhance the cloud experience.

In summary, Praveen's comments centered on the capabilities and benefits of the Cisco Cloud Connect Solution, emphasizing its comprehensive approach to addressing the evolving needs of enterprises in a cloud-centric world.

Daisuke Kubota [Executives] 💬

Daisuke Kubota provided the following information and responses during the Cisco Cloud Connected Solution Press Conference:

Ricoh's IT Service Delivery and Customer Base:
- Ricoh has been delivering IT services for a long time in Japan.
- They have 1.2 million business customers in the market.
- To provide one-stop service for these customers, internet services fit their needs.
Challenges Faced:
- Education and training for customers and Ricoh staff.
- Currently, Ricoh has only 100 Cisco-certified engineers, but they aim to increase this number by at least 10 times within the next year.
Building the Business:
- Ricoh chose Cisco due to its strong track record, both domestically and globally.
- They also valued Cisco’s rich future as a cloud gateway.
Business Results for Customers:
- Ricoh plans to start the service in October of that year.
- They conducted a trial offering to customers over the past few months.
- They believe there is no similar offering in the Japanese market, positioning it as a "blue ocean" opportunity with huge potential.

Euan Cameron [Executives] 💬

Euan Cameron provided the following information and insights during the Cisco Cloud Connected Solution Press Conference:

Company Background:
- Baker Hughes: A top-tier oilfield services company with a 100-year track record.
- Global Presence: Over 57,000 employees operating in over 80 countries.
- Product Lines: 22 product lines for the delivery of products, services, and solutions to customers.
- Revenue: Revenue of just under $20 billion in 2011.
Cloud Initiatives:
- Cloud Center of Excellence: Works with the CIO, Clifton B. Triplett, to manage the global program for cloud solutions.
- Partnerships: Working with multiple partners, including Cisco, on various cloud initiatives.
- Cisco Collaboration:
  - Self-Provisioned Capacity: Delivering customer-managed capacity on the UCS platform on a private cloud basis in less than 10 minutes.
  - Enterprise License Agreement: Signed the world's first enterprise license agreement with Cisco Security, including unlimited licensing for the ScanSafe Cloud Solution.
Africa Region Program:
- Program Overview: Complete review and refresh of infrastructure in the Africa region to improve business capabilities and simplify computing experience for customers.
- Cisco Application Services: Critical for the program, with WAAS (Wide Area Application Services) implemented across the entire Africa region within network cores and data centers.
- AppNav and WAAS 5.0: Working with Cisco and the enterprise architecture through the concept program for testing and evaluation to expand and extend existing capabilities.
Expected Benefits:
- Significant Change: Ability to expand and extend WAAS delivery for customers.
- Management and Enhancement: Simplification and enhancement of how WAAS capability can be grouped to help build platforms for cloud computing.

Jeff Schmidt [Executives] 💬

Jeff Schmidt discussed the value of the Cisco Cloud Connected Solution for BT's voice, data, and security services. Here’s a detailed summary of his comments:

Value Proposition: Traditionally, voice and data have been treated separately within the network from a security perspective. BT's solution, BT Assure Analytics, provides visual capabilities to see threats in the threat landscape. The ISR G2 enables seeing voice and data on one box, and SecureLogix allows putting voice security directly into the cloud. This allows customers to see and deal with threats quickly.
Threat Landscape: He mentioned a study by Tough (presumably a typo for a company or organization) stating that 98% of people hacking on a data network are also exploiting the voice side.
Differentiation: The Cisco Cloud Connected Solution, including the ISR G2 and the UC gateway API, helps BT differentiate its services by allowing them to see voice within the cloud and manage services and monitor them on an ongoing basis. This is unique from an industry perspective.
Customer Impact: Massive amounts of data are continuously rising, and the ability to provide customers with a better view of their entire enterprise architecture and infrastructure, including voice and data, is imperative. The visual capability to see and sort through threats quickly and ethically makes it easier to treat or remediate against them, helping customers become more proactive in preventing threats from compromising their environment.

Allwyn Sequeira [Executives] 💬

Allwyn Sequeira discussed the transformation of enterprise data centers, attributing a significant part of this change to server virtualization and consolidation. He highlighted that over 50% of the world's applications now run virtually. Sequeira emphasized the strong partnership between Cisco and VMware, which began with access switch virtualization and the integration of the UCS platform with the VCR platform in enterprise data centers.

Sequeira noted that the announcements made during the event extend this partnership to the branch and cloud environments. Specifically, he mentioned:

UCS Express: With the embedded ESX hypervisor, this solution brings virtualization benefits to the branch while maintaining management and orchestration tools familiar to users in a combined Cisco-VMware environment.
Cloud Services Router (CSR): This extends the partnership to hybrid clouds, providing cloud providers with the benefits and feature sets they are accustomed to in the physical world, while meeting the expectations and efficiencies of private and hybrid cloud experiences.

He explained that the goal is to provide a great user experience with security, compliance, and high performance, avoiding the need to backhaul data to the data center. Sequeira mentioned the benefits of the CSR running on the vSphere platform, particularly in scenarios like Virtual Desktop Infrastructure (VDI), where minimizing latency and ensuring quality of service are crucial. The combination of these platforms enables a more software-driven, programmable, and controllable experience.