Cisco Systems, Inc. Presents at KeyBanc Capital Markets 15th Annual Emerging Technology Summit, Mar-04-2020 12:00 PM - SEHK:4333

SEHK:4333

Omar Tawakol [Executives] 💬

Omar Tawakol made several comments during the presentation and question-and-answer session. Here is a detailed list of his remarks:

Introduction and Experience at Cisco:
- Mentioned his experience coming from a startup background and joining Cisco, highlighting the fast-paced environment and the significant pipeline of the recently released product.
- Noted that working with Amy Chang, who understands the startup mentality, helped facilitate a smooth transition.
Recurring Revenue Model:
- Discussed the company’s experience with the Flex commercial model, which addressed compensation and incentives, paving the way for the contact center business to transition to the cloud.
Contact Center Transformation:
- Explained that the contact center business is undergoing a significant transformation due to the changing expectations of customers influenced by experiences with companies like Disney+ and Tesla.
- Highlighted three pillars of transformation:
  - Using AI to turn agents into super agents, enabling virtual agents to handle simple queries and assist human agents with contextual information and suggested answers.
  - Embedding collaboration capabilities such as chat, teams, video, and calling to support agents in resolving customer issues more efficiently.
  - Understanding customer interactions as part of a holistic journey and using analytics to improve the overall customer experience.
Recent Changes in Contact Center:
- Noted that the changes shown in the T-Mobile video, including the integration of AI and improved collaboration tools, were quite recent, with the initial sharing occurring about three months prior to the presentation.
Importance of Unified Communications:
- Emphasized the importance of integrating cloud telephony options like WebEx and Jabber with the contact center, especially for customers looking for a comprehensive solution that includes calling and contact center capabilities.
- Mentioned that 48% of customers prefer voice interactions, while 52% prefer other forms of communication, which are supported by the contact center platform.
Omnichannel Approach:
- Addressed the shift from traditional voice-based support to an omnichannel approach, noting the potential for software revenue growth from AI and analytics supporting virtual agents.
AI Strategy:
- Detailed five areas where AI is transforming the contact center:
  - AI-driven routing of incoming calls.
  - Conversational IVR for natural language interactions.
  - AI assistance for agents during calls, surfacing relevant information and suggested answers.
  - Automated call summaries to save agents’ time.
  - AI-powered coaching and performance monitoring for agents.
5G and Mobile Focus:
- Suggested the possibility of a “voice-first” moment for enterprises, designing interfaces optimized for speech interaction.
Meeting Efficiency:
- Discussed the vision for smarter meetings, including shared agendas, contextual information about participants, reducing multitasking, and automated identification of key takeaways and action items.
Cloud Telephony Transition:
- Mentioned the excitement around the transition of existing non-cloud telephony seats to the cloud, emphasizing the significant opportunity presented by the existing 92 million users.

These remarks provide insights into Omar Tawakol’s views on the contact center business, the integration of AI and collaboration tools, and the broader strategy for transitioning to cloud-based solutions.

Amy L. Chang [Former Executive Vice President] 💬

Here is a detailed summary of Amy L. Chang’s statements during the presentation:

Introduction and Background:
- Amy thanked Alexander for the introduction and expressed her readiness.
- She noted her attire matching KeyBanc's colors and joked about the arrangement of seating.
Background on Joining Cisco:
- Amy discussed her transition from the Cisco board to the executive leadership team, highlighting the different perspectives and responsibilities.
- She shared a humorous anecdote about adjusting to her new role and the different vantage points between the board and the executive team.
Changes to Cisco's Collaboration Suite:
- Amy emphasized the significant transformation of the collaboration suite, including the creation of a single portfolio and the interoperability with existing customer systems.
- She highlighted the challenges faced due to a lack of investment in integrating acquired technologies and the subsequent efforts to unify the portfolio.
WebEx Usage Spike:
- Amy reported a 22x increase in WebEx traffic in China due to the health crisis, emphasizing the platform's scalability and reliability.
- She mentioned the free availability of WebEx in 52 countries to facilitate remote work and healthcare interactions.
Transition to Subscription and SaaS Models:
- Amy clarified that Cisco already has a substantial SaaS business through WebEx, which is a $50 billion business.
- She noted the existing expertise in selling software and the focus on scaling the SaaS offerings for mid-market and SMB segments.
Distribution Engine:
- Amy compared the advantages of Cisco's distribution capabilities with the challenges faced by startups.
- She highlighted the value of Cisco's global reach and the potential to impact hundreds of millions of users.
Current State of Collaboration Estate:
- Amy showcased the modern interface and features of WebEx, including facial recognition and sidebar integrations.
- She acknowledged past shortcomings in innovation and emphasized the renewed focus and improvements.
Jabber Growth and Integration:
- Amy reported significant growth in Jabber, with 50 million active users.
- She explained the unified client approach to simplify transitions for customers moving between on-premise and cloud solutions.
Buying Patterns and Customer Conversations:
- Amy noted that buying patterns depend on whether the decision is made by line of business or IT departments.
- She emphasized the importance of serving both EA and point solution requirements.
AI Strategy and Differentiation:
- Amy discussed the AI strategy for enhancing customer experiences, including real-time transcription, translation, and workflow augmentation.
- She highlighted the integration of Voicea into WebEx to improve meeting efficiency and post-meeting analysis.
Investments in Mobile and 5G:
- Amy expressed excitement about the impact of 5G on video quality, latency, and resiliency.
- She mentioned the broader investments in networking and security to support the growth of mobile capabilities.
Converting Telephony Seats to Cloud:
- Amy described the opportunity presented by the 92 million existing telephony seats.
- She outlined the strategy to simplify the transition process and ensure a compelling cloud offering for customers.
Closing Remarks:
- Amy emphasized the significant potential for growth in cloud calling and the strategic advantage of Cisco's existing user base.

Marilyn Mora [Director of Global Investor Relations] 💬

Marilyn Mora, the Director of Global Investor Relations at Cisco Systems, Inc., provided the following statements during the presentation:

Introduction and Safe Harbor Statement:
- Thanked Alex Kurtz for hosting Cisco at the event.
- Made a brief statement, noting that she would refer to the safe harbor statements, indicating that the discussion might include forward-looking statements.
- Directed attendees to Cisco's Forms 10-K and 10-Q, which can be found on the Investor Relations website for further details on forward-looking statements.

Her statements were concise and focused on the formalities required for public presentations, including acknowledging the host and providing legal disclaimers.