Page 31 - FY18 Advanced Services Strategic Plan

EMEAR market profile

Total Addressable Market Market Opportunities
• Customer Digital Transformation in key verticals (finance, health,
+2.8% manufacturing, retail, oil & gas) requires partnerships to deliver
• Germany and UK are expected to continue growing above EMEAR average
22,130
21,598 • Growth in Emerging markets: Rebound of Turkey and Russia markets –
currently good penetration in financial services = protection of investment
20,966
20,350 • Accelerate the business in Major and Commercial accounts (Scale),
they represent a double digit growth opportunity at high margin
20,048
19,824
19,589 • Alignment and focus on CGEM accounts should lead to strengthening
relationships and expanded engagements
FY15 FY16 FY17 FY18 FY19 FY20 FY21 Market Risk

• Strong USD driving up cost of Cisco Services
Competitive Landscape • Low oil prices challenge business in middle east

• Strong partner competition in theaters like Germany and Central Europe • High pressure of Huawei in Enterprise business
• Price competition especially, in Middle East and Africa, eroding market share • Political uncertainty in Europe
• Strong competition of Huawei specially in Middle East. Countries being • Margin impact from higher cost of software and security resources
determined to pilot beat Huawei initiatives • Current goaling in Sales does not favour AS business growth

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