Cisco Pre-Owned Equipment: The Trusted Alternative

© 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Confidential

1

© 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Confidential

1

© 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Confidential

1

Cisco Confidential

1

© 2011 Cisco and/or its affiliates. All rights reserved.

Maryann Von
Seggern


Sr
. Director, Pre
-
Owned
Equipment, Cisco Systems


March
9,
2012

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2

Introduction

Cisco Capital Overview

Cisco Pre
-
Owned Equipment

−
Program Specifics & Facts

−
Secondary Market

−
Retail Channel Strategy

−
Remanufacturing Process

−
Inventory

−
Relicensing and SMARTnet Inspection Process

−
Marketing



The Future

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3

Sr. Director

Cisco Pre
-
Owned Equipment

20
-
Year
T
enure

at IBM
Global
Financing

PC portfolio
-

$3 Billion

25
-
Year Technology Financing

and Remarketing Industry Veteran

Currently Cisco Pre
-
Owned
Equipment
Line
of Business Lead

Previously supported
Cisco
Capital Channel
Financing Strategy for
+
40,000 partners in over
140 countries globally

Recipient of

Various Industry Awards

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4

•
Leader in value
-
added financial solutions for
Cisco, its partners, and end users

•
Cisco Capital founded in 1996 as a

wholly
-
owned subsidiary of Cisco Systems, Inc.

•
Technology financing offered in 97 countries:
largest global presence

•
Channel financing offered in 146 countries

•
Cisco Certified Refurbished Equipment

available in 118 countries

•
More than $8 billion in assets

•
500 employees worldwide

Enabling Profitable Growth by Financing Cisco Innovation

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Attractive, Flexible

Financing Options for
Cisco Technology
Solutions

Credit Lines and Payment
Terms Beyond the
Standard Cisco Net 30
Day Terms

Price Competitive

and Trusted Alternative

When New Cisco

Is Not an Option

Technology
Financing

Channel
Financing

Pre
-
Owned
Equipment

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•
In existence since 2001

•
Cisco’s authorized division of refurbished
equipment

•
Reside under Cisco Capital organization

•
Large inventory of new and end of sale

Cisco products across all technologies
—

2800+ products

•
Supply available from many sources within

Cisco supply chain and lease portfolios

•
Products traditionally sold through authorized
Cisco resellers and distributors or to direct

Cisco customers

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Sold to countries


Active
and end
-
of
-
sale
products across all
Cisco technologies


Average

order size

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A lower
-
cost
alternative


Manufacturing lead
time issues


Access to end
-
of
-
sale
products


Improved ROI

and profitability


Reduce maintenance
costs
—
self sparing


Green
—
recycle,
refurbish and dispose

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Strong
Demand

Borderless

Fragmented


High market
share


Long technology lifecycle


Product durability


Positive Experiences


Internet & on
-
line
a
uction sites has increased available
inventory
r
egardless of where
y
ou are


Equipment
easily moves between major theaters


Low barriers
to
entry


Few large players
($
100M
+ Cisco
revenue)

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•
Initially established to sell Cisco Capital
off
-
lease equipment

•
Provides Cisco account managers and
partners alternative to high discounting

•
Provides access to End of Sale and End
of Hardware support products not
previously supplied from a Cisco certified
source

•
Provides customer an approximate 20%
-

30% savings off their equivalent net new
price


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Remanufacturing
Process

Product

Sources

Routes to

Market


S
tock
R
otations



Service RMA

and Trade
-
Ins



Lease
R
eturns



Selective Buybacks



Manufacturing
O
verruns

End of S
ale
Inventory

Cancelled
Orders

Lab E
quipment

Internal IT R
efresh

Direct

Customers

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INSPECT

UPGRADE

TEST

REPAIR

CLEAN AND RECONDITION

PACKAGE

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Inventory

All product families

Condition

•
Remanufactured

and
Full System Tested

to Cisco specifications

•
偲潰物整慲y 灲潤畣t 桡牤h慲攠慮搠f楲海慲攠
upgrades (ECOs)
applied

Software

Valid
IOS

software license
included


Warranty

•
Same
-
as
-
new

Cisco (90 days to Limited Lifetime)

•
Same
-
as
-
new
Cisco service options

Support

•

24 x 7 hardware and software available through Cisco TAC

•

SMARTnet

eligible with no additional inspection fees

Pricing

•
Effective discount 60+ percent off original list price

•
No hidden costs

Available Through

Cisco and Cisco

authorized resellers

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www.cisco.com/en/US/prod/hw_sw_relicensing_program.html

•

Software
license
granted
to initial
purchaser
only
–

new and
refurb


•

Product
purchased
from non
-
Cisco
source
must be re
-
licensed


•

May not
be transferred to any
other purchaser
unless authorized


•
Product purchased
through Cisco
authorized
channels not
automatically eligible
for
SMARTnet


•

Will charge an
inspection fee for
evaluation


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Emails

Online Articles

Joint Partner Marketing

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•
Incredibly strong channel; unique
approach

•
Tighter integration with Cisco:

Systems

Promos

Programs

Marketing

•
Part of the whole Cisco offer

•
Customer “Peace of Mind”

•
Other:

Our captive growing tremendously, getting larger returns

Continually assessing new routes to market

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Thank you.