Page 38 - FY18 Advanced Services Strategic Plan

Global Service Provider plan for growth

AS Financials Growth Strategy

Actual Plan LRP LRP LRP • Developed a growth strategy by assessing industry opportunities and investments required
FY17 FY18 FY19 FY20 FY21 to achieve results in the short and long term. The result was a segmentation of cross-
architectural opportunities – Horizon 1 focusing on revenue stability in the short-term (12-
18 months), Horizon 2 generating revenue growth and future cash flow in the near-term
Total Bookings ($M) 953 903 885 910 910 (18 months – 2 years), and ultimately Horizon 3 leading to breakaway growth (3-5 years).
Bookings Y/Y -5% -5% -2% 3% 0% • FY18 GSP priorities align to the horizon approach:
1. Accelerating capabilities and offers that are available today (H1)
Revenue ($M) 1,012 986 9580 952 945
2. Building Software Solutions with a focus on Hardware/Software disaggregation (H3)
Revenue Y/Y 2% -3% -3% -1% -1% 3. Developing cutting-edge automation capabilities (H2)
Gross Margin ($M) 329 317 295 293 2910 4. Cost Optimization through financial control and interlock (H1)
5. Foundation to success is a strong talent approach to assess skill sets against industry
Gross Margin % 33% 32% 31% 31% 31% shifts and account requirements. Strong need for sw skills

Cisco as Trusted Advisor Accelerate Product Operational Efficiency
• Joint GSP Account Segmentation: Sales and Services Focused in two areas: • Ease of Selling: Streamlined scalable processes with
alignment on customer segments and associated 1. Automation platforms (NSO, SPNAC, etc.) greater transparency to ensure faster turn around and
portfolio, coverage and Horizon investments • SPNAC Quick Start Accelerator higher quality selling deliverables
• Developing unique Customer Value Proposition for key 2. Infrastructure platforms (NCS, ASR9K, etc.) and transitions: • Sales Enablement: Business Development and Sales
Segment groups • HW/SW Disaggregation Training effectively delivered and aligned to the business
• Development of simplified One Services Account Data – • Compass Architectures priorities
including renewals cross-sell, up-sell and new Evolution of AS portfolio with: • Revenue Forecast Accuracy: Accurately forecast AS
• Continued focus on strengthening Sales and • Increased Advisory through SP7 Service revenue via standard global process to achieve
Services Enablement • Expanding integration with Cisco SW solutions and select quarterly commit
Open Source • GSP SPIFF to drive linearity improvements and plan
• Enhance Day 2 Operational support through Business overachievement
Critical Services Analytics and Solution Support

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