Page 26 - FY18 Advanced Services Strategic Plan

APJC market profile

Total Addressable Market Market Opportunities
• Build Cisco relevancy through Advisory thought leadership - CxO and
+5.7% Government engagement
• Pursuit of Mega Projects opportunities:
16,571 • Japan: Tokyo Olympics, Design-in of smart manufacturing
15,408 • India: Smart Cities, Digital India
14,244
11,704 12,132 12,618 13,326 • Capturing the APJC digitization/IoT opportunity – Manufacturing, Smart
cities, IOT, Digital Banking, Education and E-Commerce/Retail
• Continued customer move to consumption and cloud
• Low penetration creates opportunity for positive organic and inorganic ROI,
across theatres and service lines
• An abundance of Public Sector opportunities including all levels of Australia
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 government, Defense in Australia/India/Japan, and whole of government
aaS models
Competitive Landscape
Market Risk
Overall Sales Competitive Landscape:
• Customers modernizing installed-base and demanding value through • Line of business purchasing is challenging our traditional GTM
software and automation; lowering legacy IT OpEx and telecom spend • APJC customers in certain markets are reluctant to pay premium prices for
• Capturing adjacent TAM with our growth portfolio, eg: Security, Meraki, premium services. Deep discounting by Sales to meet Product bookings
Spark, Hyperconverge targets leading to pressure on AS margins
• Increasing whitespace penetration, especially in SMB market given that • Sales compensation not specific to AS, diluting the focus
penetration of TAM is 10-15pp below Enterprise • Lack of Security & SW skills in the market; high demand for Security
• Tight alignment with TS/AS to deliver technology implementation professionals makes it challenging to acquire & retain talent
• Competitor Cloud offerings have disrupted traditional DC & Network • Increased geopolitical risk in region (North Korea)
services, affecting growth

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