Cisco Systems, Inc. Presents at Cowen’s 48th Annual 2020 Virtual Technology, Media & Telecom Conference, May-27-2020 08:30 AM - SEHK:4333

SEHK:4333

Jonathan Davidson, an executive at Cisco Systems, discussed various topics related to the company's technology and strategies during his presentation at Cowen’s 48th Annual 2020 Virtual Technology, Media & Telecom Conference. Here is a detailed list of the key points he made:

1. Forward-Looking Statements: Davidson acknowledged that he would be making forward-looking statements during his presentation, encouraging attendees to refer to Cisco's website for full disclosure information.

2. Business Segments: He explained that Cisco's business segments are primarily centered around mobility (transitioning to 5G), the mobile core (subscriber experience), optical systems, automation and orchestration, routing business, and subscriber management software. Each segment is functionally organized within the company.

3. Product Strategy and Engineering: Davidson emphasized his role in overseeing product strategy, product management, and engineering for each business segment. He collaborates with peers for sales, marketing, services, and other functional organizations.

4. Routing Business Success: He highlighted the pride in the routing business, specifically mentioning the Cisco 8000 router, which is the highest density platform in the market with a capacity of 14.4 terabits per slot and 10.8 terabits in a single rack unit. This platform is designed to meet the needs of web build-outs, particularly for hyperscalers, with its flexibility in consumption and cutting-edge hardware and software capabilities.

5. Lessons Learned from Web Build-Outs: Davidson acknowledged the importance of listening to customer needs and co-creating solutions rather than solely building products based on assumptions. The company has evolved its approach to ensure better alignment with customer requirements and expectations.

6. NCS 5500 Platform Family: He discussed the success of Cisco's NCS 5500 platform family, which caters to both modular and fixed platform preferences among service providers and hyperscalers. This platform has seen significant adoption across various use cases, including inside most hyperscalers where the distinction between switches and routers has blurred.

7. Bandwidth Growth: Davidson pointed out the continued growth in bandwidth demand, with an average of 30% growth on the core and 50% Compound Annual Growth Rate (CAGR) on mobile infrastructure over the last decade. He also mentioned anecdotal evidence of accelerated bandwidth usage during the pandemic, with some service providers experiencing 18 months' worth of capacity consumption in weeks.

8. Capacity Planning: He discussed the uncertainty regarding whether the increased bandwidth demand during the pandemic would become the new baseline or diminish post-pandemic. Service providers are considering the need for additional capacity beyond what they have built during the pandemic to accommodate ongoing and future demands.

9. Time to Value: Davidson explained the importance of reducing the time to value for customers by streamlining the process of deploying new technologies. Cisco has introduced a cloud-based service enabling customers to easily configure and test new platforms, accelerating their integration and deployment.

10. Silicon and Hardware Innovation: He highlighted the significance of silicon in the company's technology stack, noting that it was part of the Leaba acquisition 4.5 years ago. The silicon used in Cisco's products is a clean-sheet architecture, optimized for high performance and efficiency, making it highly competitive in the market.

11. Acquisitions and Portfolio Expansion: Davidson mentioned additional acquisitions in the software space to enhance hybrid connectivity and automation. He also talked about internal investments in optics, recognizing the growing importance of optical technologies in network infrastructure.

12. 5G Transition: He discussed the ongoing transition to 5G, emphasizing the need for alignment on spectrum availability, handsets, and technology decisions related to mobile core providers and RAM suppliers. Cisco has been working closely with service providers to support their 5G network builds.

13. Starent Acquisition and Mobile Core: He referenced the Starent acquisition, now known as the Cisco Ultra Cloud Core, which is transitioning from appliance-based to cloud-native software. The mobile core technology has been instrumental in supporting T-Mobile's 5G network initiatives, including the deployment of the first 5G SA core infrastructure globally.

14. Geopolitical Focus: Davidson stated that while geopolitical events can influence the industry, Cisco focuses on innovation and long-term differentiation, prioritizing customer needs and expectations over external factors.

15. Closing Remarks: He thanked the audience and Paul for their attention, indicating the end of his presentation.