Page 20 - FY18 Advanced Services Strategic Plan

The Americas market profile

Total Addressable Market Market Opportunities
• Increased customer need for holistic approach and spend on Security
+4.4% • Need to reduce operating expenses driving customers to seek
cost-saving solutions
23,901 • Significant Network Refresh population due to LDOS and next-gen network
21,351 22,563 infrastructure requirements
19,988
16,974 17,929 18,851 • Speed and inherent complexity of Cloud adoption
• Expansion of digitization initiatives driving IoT
• Increased customer demand for insight and analytics on network performance
and capabilities
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Market Risk

• Customer desire for consumption models driving transition from traditional
Competitive Landscape AIO model to Managed Services, placing pressure on pricing/margins
• Global Enterprise competitors developing strong product portfolio and talent • Lack of Cisco brand recognition as a provider of IoT and Cloud capabilities
bench: HPE, Aruba, Huawei • Challenges acquiring sufficient skilled resources to meet services demand
• In Security, FireEye, CrowdStrike, SecureWorks are increasingly competitive • Focus on product feature simplicity and cloud offers are causing customers
due to multi-vendor support and talent to increasingly perceive ability to self-service
• Partners expanding from simple rack and stack to full lifecycle • Ability to respond as quickly to customer requirements as smaller niche
solution-based services services companies
• Low cost public cloud competitors expanding Enterprise services presence • Partner perception that complexity and perceived competition are hindering
channel growth

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