Cisco Systems, Inc.

Company Profile
Publication Date: 4 Jun 2010

www.datamonitor.com
Europe, Middle East & Africa 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7551 9090 e: euroinfo@datamonitor.com Americas 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Asia Pacific Level 46 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8088 7405 e: apinfo@datamonitor.com

Cisco Systems, Inc.

ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Cisco Systems, Inc. Datamonitor

Page 2

Cisco Systems, Inc.

TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................4 Key Facts...............................................................................................................4 Business Description...........................................................................................5 History...................................................................................................................8 Key Employees...................................................................................................11 Key Employee Biographies................................................................................12 Major Products and Services............................................................................19 Revenue Analysis...............................................................................................21 SWOT Analysis...................................................................................................23 Top Competitors.................................................................................................29 Company View.....................................................................................................30 Locations and Subsidiaries...............................................................................34

Cisco Systems, Inc. Datamonitor

Page 3

Cisco Systems, Inc.

Company Overview

COMPANY OVERVIEW
Cisco Systems (Cisco) designs, manufactures and sells internet protocol (IP)-based networking and other products for the communications and information technology (IT) industry. The company primarily operates in the US, Canada and Europe. It is headquartered in San Jose, California and employs about 65,550 people. The company recorded revenues of $36,117 million during the financial year ended July 2009 (FY2009), a decrease of 8.7% over 2008. The operating profit of the company was $7,322 million in FY2009, a decrease of 22.5% over 2008. Its net profit was $6,134 million in FY2009, a decrease of 23.8% over 2008.

KEY FACTS
Head Office Cisco Systems, Inc. 170 West Tasman Drive San Jose California 95134 USA 1 408 526 4000 1 408 526 4100 http://www.cisco.com

Phone Fax Web Address

Revenue / turnover 36,117.0 (USD Mn) Financial Year End Employees NASDAQ Ticker July 65,550 CSCO

Cisco Systems, Inc. Datamonitor

Page 4

Cisco Systems, Inc.

Business Description

BUSINESS DESCRIPTION
Cisco Systems (Cisco) provides networking and other related products and services for the communications and IT industry. The companys products are used for transmission of data, voice and video. Its major products include routers, switches, IP telephony and products related to network access, security, optical networking, storage area networking, wireless technology and home networking.The companys products are used by corporations, public institutions, telecommunications companies, businesses and consumers. Cisco has operations in the North America; Latin America; Europe, the Middle East and Africa; and Asia Pacific regions. Ciscos operations are categorized into two offerings: products and services. The companys products segment is sub divided into four categories: routers, switches, advanced technology and other. Cisco offers a broad range of routers from core network infrastructure for service providers and enterprises to access routers for branch office to home network deployments for telecommuters and consumers. The companys routers host a wide range of services and advanced technologies, offering integrated voice, video, data, and mobility for homes and businesses. Ciscos key router products include Cisco 1800 series, Cisco 2800 series, and Cisco 3800 series integrated services routers; Cisco 7200 series, Cisco 7600 series and Cisco 12000 series routers, and the Cisco CRS-1 carrier routing system. The company offers switches for use in campuses, branch offices and data centers to build local-area networks (LANs), metropolitan-area networks (MANs) and wide-area networks (WANs). These products offer connectivity to end users, workstations, IP phones, access points and servers, and function as aggregators on LANs, MANs, and WANs. The systems employ several widely used technologies including Ethernet, power over Ethernet, fibre channel over Ethernet, packet over synchronous optical network, and multiprotocol label switching. Cisco offers a comprehensive family of Ethernet switching solutions from fixed configuration switches for small and medium-sized businesses to modular switches for enterprises and service providers. Its fixed-configuration switches are designed to provide a foundation for converged data, voice and video services. Ciscos key switching products include Catalyst 2960 series, 3560 series, 3750 series, 4500 series and 6500 series. In FY2009, the company introduced first hypervisor-based software switch, the Cisco Nexus 1000V Series Switch. The companys advanced technology offerings include application networking services, home networking, security, storage area networking (SAN), unified communications, video systems and wireless technology. Ciscos portfolio of application networking services facilitates the delivery of applications within data centers and across WANs to remote and branch-office users. The companys main products in this

Cisco Systems, Inc. Datamonitor

Page 5

Cisco Systems, Inc.

Business Description

area include Cisco Wide Area Application Services (WAAS), a comprehensive WAN optimization solution. Its home networking products connect different devices in the household, through wired or wireless connections to share internet access, printers, music, movies and games throughout the home. The companys home networking products include voice and data modems, routers and gateways, internet video cameras, home entertainment storage, wireless home audio, home network management software, and other products. The company offers these products through selected retailers, value-added resellers, online retailers and service providers. In FY2009, the company introduced Linksys brand home routers and access points supporting the 802.11n Wi-Fi standard; and Media Hub devices, which allow people to store, manage and share digital content throughout their homes. Cisco security solutions include network and content security systems that are designed to enable highly secure collaboration. The companys products in this category span firewall, intrusion prevention, remote access and virtual private networks (VPNs), unified client, web and email security. Its key product line within security product category is the Cisco ASA 5500 Series Adaptive Security Appliances. In FY2009, the company introduced email and web security products including the Cisco IronPort Email Security Appliance and Cisco IronPort Web Security Appliance for enterprise and midmarket companies, and the Cisco Spam and Virus Blocker for small businesses. The company provides SAN products that offer multilayer, scalable and secure connectivity between servers and storage systems, including products such as storage arrays and tape drives. These products incorporate intelligent network features, such as advanced network security, traffic management, virtualization, and tools that enable storing, retrieving and protecting critical data across widely distributed environments. The companys key SAN product line includes Cisco MDS 9000 series. In FY2009, Cisco transitioned its SAN operating system to Cisco NX-OS. Ciscos unified communications products integrate voice, video, data and mobile applications on fixed and mobile networks. The companys unified communications products include IP phones, client software, servers and network appliances supporting call control, contact centers, messaging, conferencing, voice mobility and collaboration. These products are available as software, as standalone devices and as integrated components in Cisco routers and switches. The security and scalability of the network enable users in any workspace to connect with one another through a computer, handset, smartphone or other similar communications equipment. Cisco Unified Communications is part of a solution that includes network infrastructure, security, wireless, management applications, lifecycle services, flexible deployment, outsourced management options and third-party applications. This category includes Cisco WebEx products, which provide web-based collaborative offerings that allow users to share presentations, applications, documents and desktops, with full-motion video and integrated audio through a standard web browser. The companys video systems include digital set-top boxes and digital media technology products. These systems include Standard-Definition (SD), IP television (IPTV) service-enabled, data over cable system interface specification (DOCSIS), DOCSIS gateway (DSG), high-definition (HD), digital video recorder (DVR), HD-DVR, multiple-room DVR, media center DVR, and digital-only set-top

Cisco Systems, Inc. Datamonitor

Page 6

Cisco Systems, Inc.

Business Description

boxes. Ciscos digital media technology products span a wide range of signal processing and headend capabilities including reception, encoding or transcoding, transrating, multiplexing, ad insertion, switching, and modulation. The wireless technology offerings include Cisco Unified Wireless Network, which is designed to unify 802.11n wireless access across campus, branch, remote and outdoor environments. The companys key product line within this category is the Cisco Aironet product family. Ciscos other products comprise of optical networking products, cable access and service provider VoIP services. The company provides optical networking products for both the enterprises and service providers. Its other products also include emerging technologies such as Cisco TelePresence systems, TelePresence Exchange Services, physical security and video surveillance, digital media products, and building systems that help companies manage energy. Cisco also offers a broad range of services, including technical support services and advanced services. The company offers technical services to support functionality of its products. Its advanced services provide support to its technologies for specific networking needs. The advanced services program supports networking devices, applications, solutions and complete infrastructure.

Cisco Systems, Inc. Datamonitor

Page 7

Cisco Systems, Inc.

History

HISTORY
Cisco was incorporated in 1984. The company grew as a result of demand for the Internet and networking products. The company enhanced its offerings by a series of acquisitions over the years. During 1993, Cisco and Cascade Communications agreed to jointly develop a multi service WAN solution for the telecommunications marketplace based on combined technology. This move was responsible for producing the industrys first unified platform. It also resulted in improving sales of Cisco products as Cascade began using them for its operations. During the mid 1990s, the company became firmly established and was looking to expand its technology base. It acquired Grand Junction Networks and Startacom in 1996. This provided Cisco with Ethernet products and transfer mode and frame delay equipment. During the later part of 1990s, the company acquired Selsius Systems in 1998, and Pirelli Optical Systems and Cerent in 1999. Cisco furthered its interest in IP network solutions by acquiring Active Voice in 2000. During 2001, the company entered into an agreement with Unite Pan-Europe Communications to build the first cable Voice over Internet Protocol (VoIP) communications network in the European Union. The company made numerous acquisitions between 2001 and 2003. It purchased Allegro Systems and AuroraNetics in 2001; Psionic Software, Andiamo Systems, AYR Networks, Navarro Networks and Hammerhead Networks in 2002 and Linksys Group, SignalWorks and Okena in 2003. During 2004, Cisco expanded in China with an upgrade contract for Shanghai Cable Networks. In the same year, company acquired Riverhead Networks, Twingo Systems, Actona Technologies, Parc Technologies, P-Cube and Dynamicsoft. Cisco and EMC planned to provide customers with an end-to-end storage consolidation solution for remote-office data in 2005. During 2005, the company collaborated with MCI to identify resources and create tools, training and programs. These tools were for improving the ability of channel partners to sell, deploy and support both hosted and premise-based IP solutions. During the later part of the year, it completed the acquisition of Airespace, a provider of wireless local area networking (WLAN) systems. Cisco, Philips, and Emergin collaborated on patient monitoring solution that delivers immediate waveform and text medical alarms to clinicians in 2006. In the same year, the company acquired Scientific-Atlanta, a provider of set-top boxes, end-to-end video distribution networks and video systems integration; SyPixx Networks; privately held companies Metreos of Austin, and Audium of New York engaged in providing simplified drag and drop, application creation/integration environments; Arroyo Video Solution and Meetinghouse Data Communications; Orative, a unified communications provider; and Greenfield Networks, a provider of ICs, hardware and software optimized for Ethernet packet processing.

Cisco Systems, Inc. Datamonitor

Page 8

Cisco Systems, Inc.

History

In the same year, Cisco and Hanoi University of Technology collaborated to launch a Networking Research and Development (R&D) Laboratory, which focused on network security and established a global research and development centre in Galway, with the support of IDA Ireland. In 2007, the company continued its inorganic growth spree by acquiring IronPort Systems, a provider of messaging security appliances; Five Across, a social-networking software vendor; Reactivity, an XML gateway provider; NeoPath Networks, a provider of file storage management solutions; WebEx Communications, a business to business networking solutions provider; SpansLogic, a provider of processors for improvement of packet processing speeds across the network; BroadWare Technologies, a provider of IP-based video surveillance software; Cognio, a provider of wireless spectrum analysis and management for wireless networks; Latigent, a provider of web-based business intelligence and analytics reporting solutions; Navini Networks, a major provider in the Mobile WiMAX 802.16e-2005 broadband wireless industry; and Securent, a provider of policy management software for enterprises. Also in 2007, it also resolved a dispute over the iPhone trademark with Apple to use the trademark. In 2008, the company announced a plan to invest up to AED5.8 billion ($1.59 billion) on information and communications technology (ICT) in the UAE over the next five years; and in another announcement revealed its intention to establish a research and technology base at the Qatar Science & Technology Park (QSTP). Subsequently, Cisco and EMC expanded their strategic alliance to offer holistic data security solutions for IT infrastructure, including storage, servers, networks and data center security. Also in 2008, Cisco acquired the remaining stake in San Jose-based Nuova Systems, a startup focused on the development of next-generation products for the data center market; DiviTech, a player in the digital-service management (DSM) market; Pure Networks, a Seattle-based provider of in-home networking-management software and tools; and Jabber, a provider of presence and messaging software. In the same year, Cisco announced its strategy of investment in the Russian technology industry through an anchor investment in a venture capital fund Almaz Capital Russia Fund focused on Russia and the Commonwealth of Independent States. \ Subsequently, Cisco increased its equity stake in VMware to approximately 1.7% by purchasing 500,000 shares of VMware Class A common stock held by Intel for approximately $13.3 million. In January 2009, Cisco completed the purchase of privately-held Richards-Zeta Building Intelligence, a provider of intelligent middleware technology that enables businesses to integrate building infrastructure and IT applications over a common IP network. Subsequently, Cisco and Dell announced their intention to enter into collaboration to offer IT solutions for data center infrastructure by pooling storage, computing and networking infrastructure resources. In the next month, Accenture and Cisco expanded their strategic alliance to form an innovative virtual group to design, build and run a portfolio of business solutions that integrate unified communication and collaboration tools into multiple applications across companies' IT infrastructures. EMC and Cisco expanded their strategic alliance, in March 2009, to work together on next-generation virtualized data centers. Subsequently, Cisco established an office and internet data centre in Bahrain.

Cisco Systems, Inc. Datamonitor

Page 9

Cisco Systems, Inc.

History

Cisco also launched its Unified Computing System, an enterprise data center platform architected that combines Ciscos networking, storage and virtualization capabilities, in March 2009. In the next month, Cisco opened an office in the capital of Tunis, Tunisia. In May 2009, the company launched Cisco Unified Service Delivery, a solution to help service providers build a foundation for cloud services. In the same month, Cisco completed the acquisitions of Tidal Software, a provider of intelligent application management and automation solutions, and Pure Digital Technologies, a developer of consumer video solutions and creator of the Flip Video brand. In November 2009, the company entered into a definitive agreement to acquire the set-top box business of DVN (Holdings), a provider of digital cable solutions in China. In the next month, Cisco completed the acquisitions of ScanSafe, a provider of software-as-a-service (SaaS) web security solutions, and Starent Networks, an IP based mobile infrastructure solutions provider targeting mobile and converged carriers. In March 2010, the company launched the Cisco HealthPresence platform, an advanced, care-at-a-distance technology platform that allows patients to connect with doctors and clinicians for health care consultations. In the same month, Cisco paired its wireless technology with Flip Video's simplicity-in-design approach to launch Valet, a product line that makes home wireless simple and accessible for everyone.

Cisco Systems, Inc. Datamonitor

Page 10

Cisco Systems, Inc.

Key Employees

KEY EMPLOYEES
Name
John T Chambers Carol Bartz Larry R Carter M Michele Burns Michael D Capellas Brian L Halla John L Hennessy Richard Kovacevich Roderick C McGeary Michael K Powell Arun Sarin Steven M West Jerry Yang Susan L Bostrom

Job Title
Chairman and Chief Executive Officer Lead Independent Director Director Director Director Director Director Director Director Director Director Director Director

Board
Executive Board Non Executive Board Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board

Compensation
10270083 USD 366536 USD

350536 USD 407294 USD 427013 USD 336536 USD 339519 USD 378536 USD 409513 USD

381536 USD 332536 USD

Executive Vice President, Chief Senior Management Marketing Officer, Global Policy and Government Affairs Executive Vice President and Chief Senior Management Financial Officer Executive Vice President, Cisco Services and Chief Globalization Officer Senior Management 3745157 USD 7484734 USD

Frank A Calderoni Wim Elfrink

Robert W. Lloyd Randy Pond

Executive Vice President, Worldwide Senior Management Operations Executive Vice President, Senior Management Operations, Processes and Systems

4860701 USD 4979477 USD

Cisco Systems, Inc. Datamonitor

Page 11

Cisco Systems, Inc.

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

John T Chambers
Board: Executive Board Job Title: Chairman and Chief Executive Officer Since: 2006 Age: 60 Mr. Chambers has been the Chairman and CEO at Cisco since 2006. He served as a member of the Board of Directors at the company since 1993 and as the Chairman since 2006. He joined Cisco as the Senior Vice President in 1991, was promoted to Executive Vice President in 1994 and to CEO in 1995. He also served as the President from 1995 to 2006. Before joining Cisco, he was employed by Wang Laboratories for eight years, where he last served as the Senior Vice President of US Operations. He holds a law degree (1974) and a Bachelor of Science / Bachelor of Arts Degree (1971) in business from West Virginia University and a Masters of Business Administration degree (1975) from Indiana University.

Carol Bartz
Board: Non Executive Board Job Title: Lead Independent Director Since: 1996 Age: 61 Ms. Bartz has been the Lead Independent Director at Cisco since 1996. She is also the President and CEO at Yahoo! since March 2009. From 2006 to January 2009, she was the Executive Chairman at Autodesk. From 1992 to 2006, she served as the Chairman and CEOof Autodesk. Prior to that, she was employed by Sun Microsystems from 1983 to 1992.

Larry R Carter
Board: Executive Board Job Title: Director Since: 2000 Age: 66 Mr. Carter has been a Director at Cisco since 2000. He joined Cisco in 1995 as Vice President of Finance and Administration, Chief Financial Officer and Secretary. In 1997, he was promoted to Senior Vice President of Finance and Administration, Chief Financial Officer and Secretary. In 2003, upon his retirement as Chief Financial Officer and Secretary, he was appointed as the Senior Vice

Cisco Systems, Inc. Datamonitor

Page 12

Cisco Systems, Inc.

Key Employee Biographies

President, Office of the Chairman and CEO. Before joining Cisco, he was employed by Advanced Micro Devices as Vice President and Corporate Controller.

M Michele Burns
Board: Non Executive Board Job Title: Director Since: 2003 Age: 51 Ms. Burns has been a Director at Cisco since 2003. She is the Chairman and CEOof Mercer. Ms. Burns began her career in 1981 at Arthur Andersen and became a partner in 1989. In 1999, she joined Delta Air Lines assuming the role of Executive Vice President and Chief Financial Officer in 2000 and holding that position through 2004. From 2004 to 2006, she served as the Executive Vice President, Chief Financial Officer and Chief Restructuring Officer at Mirant Corporation. Upon successful restructuring and emergence of the company from bankruptcy, Ms. Burns joined Marsh & McLennan Companies as the Chief Financial Officer in 2006. She assumed the role of Chairman and CEO at Mercer six months later. She also serves as a Director at Wal-Mart Stores.

Michael D Capellas
Board: Non Executive Board Job Title: Director Since: 2006 Age: 55 Mr. Capellas has been a Director at Cisco since 2006. He has served as the Chairman and CEO at First Data Corporation since 2007. From 2006 to 2007, Mr. Capellas served as the Senior Advisor at Silver Lake Partners. From 2002 to 2006, he served as the CEO at MCI, which was known as WorldCom prior to its emergence from bankruptcy in 2004, and from 2004 to 2006 he also served as that companys President. From 2002 to arch 2004, he was also the Chairman at WorldCom. He left MCI in 2006 upon its acquisition by Verizon Communications. Previously, Mr. Capellas was the President at HP in 2002. Before the merger of HP and Compaq Computer in 2002, he was the President and CEO at Compaq, a position he had held since 1999, and Chairman at Compaq, a position he had held since 2000.

Brian L Halla
Board: Non Executive Board Job Title: Director Since: 2007 Age: 63

Cisco Systems, Inc. Datamonitor

Page 13

Cisco Systems, Inc.

Key Employee Biographies

Mr. Halla has been a Director at Cisco since 2007. He has also been the Chairman and CEO at National Semiconductor since 1996, and served as its President from 1996 to 2005. Prior to 1996, Mr. Halla served in several capacities at LSI Logic Corporation, where he last served as the Executive Vice President of LSI Logic Products.

John L Hennessy
Board: Non Executive Board Job Title: Director Since: 2002 Age: 56 Dr. Hennessy has been a Director at Cisco since 2002. He has also been the President at Stanford University since 2000. He served as the Provost at Stanford from 1999 to 2000, Dean at the Stanford University School of Engineering from 1996 to 1999, and Chair at the Stanford University Department of Computer Science from 1994 to 1996. Dr. Hennessy is also the Chairman at Atheros Communications and serves on the Board of Directors at Google.

Richard Kovacevich
Board: Non Executive Board Job Title: Director Since: 2005 Age: 65 Mr. Kovacevich has been a Director at Cisco since 2005. He is also the Chairman at Wells Fargo, a position held since 2001. He also served as the CEO at Wells Fargo from 1998 to 2007, and as the President from 1998 to 2005. From 1993 to 1998, he served as the CEO at Norwest, which merged with Wells Fargo in 1998. He also served as the President at Norwest from 1993 to 1997 and as the Chairman of Norwest Corporation from 1995 to 1998. He became a member of the Board of Directors at Norwest Corporation in 1986. Mr. Kovacevich is also a Director at Target.

Roderick C McGeary
Board: Non Executive Board Job Title: Director Since: 2003 Age: 59 Mr. McGeary has been a Director at Cisco since 2003. He has also been the Chairman at BearingPoint since 2004. From 2004 to 2005, he also served as interim CEO at BearingPoint. Mr. McGeary served as the CEO at Brience from 2000 to 2002. In 2000, he served as the Managing Director of KPMG Consulting, a wholly owned subsidiary of BearingPoint (formerly KPMG Consulting). From 1999 to 2000, he served as the Co-President and Co-CEO at BearingPoint. From 1997 to 1999, he was

Cisco Systems, Inc. Datamonitor

Page 14

Cisco Systems, Inc.

Key Employee Biographies

employed by KPMG as its Co-Vice Chairman of Consulting. Prior to 1997, he served in several capacities with KPMG, including audit partner for technology clients. Mr. McGeary is a Certified Public Accountant and holds a B.S. degree in Accounting from Lehigh University. He is also a Director at Dionex.

Michael K Powell
Board: Non Executive Board Job Title: Director Since: 2007 Age: 46 Mr. Powell has been a Director at Cisco since 2007. He also serves as the Senior Advisor to Providence Equity Partners, and as the Chairman at the MK Powell Group. He was the Chairman at the Federal Communications Commission from 2001 to 2005, having served as a Commissioner since 1997. Mr. Powell previously served as the Chief of Staff at the Antitrust Division of the Department of Justice.

Arun Sarin
Board: Non Executive Board Job Title: Director Since: 2009 Age: 54 Mr. Sarin has been a Director at Cisco since September 2009. Previously, he served the companys Board of Directors from 1998 to 2003. In 2003, Mr. Sarin became the CEO designate of Vodafone Group and served until 2008. From 2001 to 2003, he was the CEO at Accel-KKR Telecom. Mr. Sarin was the CEO at InfoSpace from 2000 to 2001. He was the CEO at the USA/Asia Pacific Region for Vodafone AirTouch from 1999 to 2000. From 1997 to 1999, Mr. Sarin was the President at AirTouch Communications. Prior to that, he served as the President and CEO at AirTouch International from 1994 to 1997. Mr. Sarin joined AirTouch Communications in 1994 as the Senior Vice President of Corporate Strategy and Development upon its demerger from Pacific Telesis Group which he joined in 1984. Mr. Sarin also serves on the Board of Directors at Safeway.

Steven M West
Board: Non Executive Board Job Title: Director Since: 1996 Age: 54 Mr. West has been a Director at Cisco since 1996. He is a founder and partner at Emerging Company Partners. He served as the Chief Operating Officer at nCUBE Corporation from 2001 to 2003. Prior

Cisco Systems, Inc. Datamonitor

Page 15

Cisco Systems, Inc.

Key Employee Biographies

to joining nCUBE, he was the President and CEO at Entera from 1999 until it was acquired by Blue Coat Systems (formerly CacheFlow) in 2001. From 1996 to 1999, he was the President and CEO of Hitachi Data Systems. Prior to that, Mr. West was at Electronic Data Systems Corporation from 1984 to 1996. He is also a Director at Autodesk.

Jerry Yang
Board: Non Executive Board Job Title: Director Since: 2000 Age: 40 Mr. Yang has been a Director at Cisco since 2000. He is a co-founder of Yahoo! and Director at Yahoo! since 1995. He also served as the CEO of Yahoo! from 2007 to January 2009.

Susan L Bostrom
Board: Senior Management Job Title: Executive Vice President, Chief Marketing Officer, Global Policy and Government Affairs Since: 2007 Age: 48 Ms. Bostrom has been the Executive Vice President, Chief Marketing Officer, Global Policy and Government Affairs at Cisco since 2007. She joined Cisco in 1997 as the Vice President of Ciscos Applications and Services Marketing group. In 1998, she was appointed as the Vice President of the Internet Business Solutions Group, and she was promoted to Senior Vice President in 2000. In 2002, she also assumed responsibility for Worldwide Government Affairs. Since 2006, she has served as the Chief Marketing Officer, and, in 2007, she was named the Executive Vice President. Before joining Cisco, Ms. Bostrom had served as the Senior Vice President of Global Marketing and Strategic Planning at FTP Software.

Frank A Calderoni
Board: Senior Management Job Title: Executive Vice President and Chief Financial Officer Since: 2008 Age: 52 Mr. Chandler has been the Senior Vice President, Legal Services, General Counsel and Secretary at Cisco since 2006. He joined Cisco in 1996, upon Ciscos acquisition of StrataCom, where he served as the General Counsel. He served as Ciscos Managing Attorney for Europe, the Middle East, and Africa from 1996 until 1999; as Director, Worldwide Legal Operations from 1999 until 2001; and was promoted to Vice President, Worldwide Legal Services in 2001. In 2001, he was promoted to Vice President, Legal Services and General Counsel and in 2003, he was also appointed Secretary.

Cisco Systems, Inc. Datamonitor

Page 16

Cisco Systems, Inc.

Key Employee Biographies

In 2006, he was promoted to Senior Vice President. Before joining StrataCom, he had served as Vice President, Corporate Development and General Counsel of Maxtor Corporation.

Wim Elfrink
Board: Senior Management Job Title: Executive Vice President, Cisco Services and Chief Globalization Officer Since: 2007 Age: 57 Mr. Elfrink has been the Executive Vice President, Cisco Services and Chief Globalization Officer at Cisco since 2007. He joined Cisco in 1997 as the Vice President of Customer Advocacy in Europe. In 2000, he was promoted to Senior Vice President, Customer Advocacy. He was appointed Chief Globalization Officer in 2006 and moved to Bangalore India to establish Ciscos Globalization Centre East.

Robert W. Lloyd
Board: Senior Management Job Title: Executive Vice President, Worldwide Operations Since: 2009 Age: 53 Mr. Lloyd has been the Executive Vice President, Worldwide Operations at Cisco since April 2009. He joined Cisco in 1994 as the General Manager of Cisco Canada. In 1998, Mr. Lloyd was promoted to Vice President, EMEA (Europe, Middle East and Africa); in 2001, he was promoted to Senior Vice President, EMEA; and in 2005, Mr. Lloyd was appointed as the Senior Vice President, US, Canada and Japan.

Randy Pond
Board: Senior Management Job Title: Executive Vice President, Operations, Processes and Systems Since: 2007 Age: 54 Mr. Pond has been the Executive Vice President, Operations, Processes and Systems at Cisco since 2007. He joined Cisco in 1993. In 1994, Mr. Pond assumed leadership of Ciscos Supply/Demand group. In 1994, he was appointed Director of Manufacturing Operations. He was promoted to Vice President of Manufacturing in 1995. In 2000, Mr. Pond was promoted to Senior Vice President of West Coast and Asia operations. He was promoted to Senior Vice President, Worldwide Manufacturing Operations and Logistics in 2001. In 2003, he was promoted to Senior Vice President, Operations, Processes and Systems. Before joining Cisco, Mr. Pond held the position

Cisco Systems, Inc. Datamonitor

Page 17

Cisco Systems, Inc.

Key Employee Biographies

of Vice President Finance, Chief Financial Officer, and Vice President of Operations at Crescendo Communications.

Cisco Systems, Inc. Datamonitor

Page 18

Cisco Systems, Inc.

Major Products and Services

MAJOR PRODUCTS AND SERVICES

Cisco Systems provides networking and other related products and services for the communications and IT industry. The companys products are used for transmission of data, voice and video. Its key products and services include the following: Networking systems: Routers Switches Security Physical security and building systems Network Management Cisco IOS and NX-OS Software Interfaces and Modules Optical Networking Network Management Services: Wireless services Wireless LAN services Wireless mobility services for service providers Security services Physical security services Network management services Server networking and virtualization services Carrier Ethernet services

Collaboration, Voice and Video: Collaboration WebEx TelePresence Video, cable and content delivery Voice and unified communications Service exchange Universal gateways Voice and Unified Communications Services: WebEx services TelePresence services Video, cable and content delivery services Broadband cable services Voice and unified communications services Interoperability systems services

Cisco Systems, Inc. Datamonitor

Page 19

Cisco Systems, Inc.

Major Products and Services

Unified application environment services Unified customer contact center services Data center: Unified Computing Application networking services Storage networking Data center switches Blade switches Data center services: Unified computing services Data center switching services Storage networking services Services for application networking services Application management services Home: Home Networking (Valet and Linksys) Flip Video

Cisco Systems, Inc. Datamonitor

Page 20

Cisco Systems, Inc.

Revenue Analysis

REVENUE ANALYSIS
Cisco Systems The company recorded revenues of $36,117 million during the financial year ended July 2009 (FY2009), a decrease of 8.7% over 2008. In FY2009, the US and Canada, the company's largest geographic market, accounted for 53.6% of the total revenues. Cisco generates revenues through one business division, involved in design, development, manufacturing, marketing and technical support of networking and other products and services related to the communications and IT industry. However, the company reports its revenues by products and services categories. Its product categories include switches (33.3% of the total revenues in FY2009), advanced technologies (25.5%), routers (17.4%) and other products (4.5%). The companys services accounted for 19.3% of the total revenues in FY2009. Revenues by products and services categories In FY2009, the switches division recorded revenues of $12,025 million, a decrease of 10.6% over 2008. The advanced technologies division recorded revenues of $9,218 million in FY2009, a decrease of 3.6% over 2008. The services division recorded revenues of $6,986 million in FY2009, an increase of 8.5% over 2008. The routers division recorded revenues of $6,271 million in FY2009, a decrease of 20.6% over 2008. The other products division recorded revenues of $1,617 million in FY2009, a decrease of 26.1% over 2008. Revenues by Geography The US and Canada, Cisco's largest geographical market, accounted for 53.6% of the total revenues in FY2009. Revenues from the US and Canada reached $19,345 million in 2009, a decrease of 8.9% over 2008. European Markets accounted for 21.3% of the total revenues in FY2009. Revenues from European Markets reached $7,683 million in 2009, a decrease of 5.4% over 2008. Emerging Markets* accounted for 11.1% of the total revenues in FY2009. Revenues from Emerging Markets reached $3,999 million in 2009, a decrease of 11.7% over 2008.

Cisco Systems, Inc. Datamonitor

Page 21

Cisco Systems, Inc.

Revenue Analysis

Asia Pacific accounted for 10.3% of the total revenues in the FY2009. Revenues from Asia Pacific reached $3,718 million in 2009, a decrease of 13% over 2008. Japan accounted for 3.8% of the total revenues in FY2009. Revenues from Japan reached $1,372 million in 2009, an increase of 0.2% over 2008. * The emerging markets include Eastern Europe, Latin America, the Middle East and Africa, and Russia and the Commonwealth of Independent States.

Cisco Systems, Inc. Datamonitor

Page 22

Cisco Systems, Inc.

SWOT Analysis

SWOT ANALYSIS
Cisco Systems (Cisco) provides networking and other related products and services for the communications and IT industry. The companys products are used for transmission of data, voice and video. Its major products include routers, switches, IP telephony and products related to network access, security, optical networking, storage area networking, wireless technology and home networking. It has a strong market position in most of the market segments it serves. Strong market position provides a competitive advantage as well as allows the company to enter related markets. However, intense competition in the networking and communications equipment market will continue to adversely affect the companys market shares and margins in coming years. Strengths Strong market position Strategic alliances Robust balance sheet Opportunities Expanding portfolio of offerings Positive outlook for cloud computing Growing demand for video collaboration Weaknesses Lack of significant presence in the consumer market Weakness in specific business segments Threats Intense competition Dependence on suppliers Consolidation in the communications market

Strengths

Strong market position Cisco Systems (Cisco) has a strong market position in most of the market segments it serves, such as switches, routers and enterprise telephony. The company led the modular Ethernet switching and fixed Ethernet switching markets with market shares of over 75% and 60%, respectively, in 2009. It also led edge routing market with a share of about 45% in 2009. Cisco is also a leading player in the enterprise telephony market and contact center solutions market. The companys strong market position provides a competitive advantage as well as allows it to enter related markets. Strategic alliances The company has strategic alliances with various leading companies. It pursues strategic alliances with other companies to collaborate in areas that produce industry advancement and facilitate its entry into new markets. The companys strategic alliance objectives and goals include technology

Cisco Systems, Inc. Datamonitor

Page 23

Cisco Systems, Inc.

SWOT Analysis

exchange, product development, joint sales and marketing activities. Cisco has strategic alliances with Accenture, AT&T, BearingPoint, Capgemini; Dell, EMC, Fujitsu, Hewlett-Packard, Intel, IBM, Microsoft, Nokia, Nokia Siemens Networks, Oracle, Siemens, Sprint Nextel, Tata Consultancy Services and Wipro, among others. Moreover, the company continues to expand its alliances with existing partners. The companys strategic alliances have enabled it to introduce new solutions and strengthen geographic reach. Strategic alliances will enhance the competitiveness of the company as well as accelerate its expansion plans. Robust balance sheet Cisco has a robust balance sheet. The companys balance sheet features significant cash and cash equivalents, investments and balanced debt equity. At the end of FY2009, it reported cash and cash equivalents of $5,718 million, compared to $5,191 million in 2008 and $3,728 million in 2007. Its investments, which are primarily short term in nature, stood at $29,283 million at the end of FY2009, compared to $21,044 million in 2008 and $18,538 million in 2007. As a result, the companys cash and cash equivalents, and investments together totaled $35,001 million at the end of FY2009, signifying strong liquidity which can support its future strategic activities of significant magnitude. Further, its long-term debt to equity ratio stood at 0.27 at the end of FY2009. Robust balance sheet has also allowed the company to invest in inorganic growth initiatives, investment and buy back of own shares. The companys robust balance sheet enhances its investors confidence as well as allows it to invest in the future growth avenues.

Weaknesses

Lack of significant presence in the consumer market The company has a relatively weak presence in the consumer market in which it has been expanding in recent times. Cisco has been historically strong in the enterprise and carrier solutions market. However, the company has been expanding into the consumer electronics market in recent times. Cisco through collaboration with technology partners, retailers, service providers and content publishers is striving to create compelling consumer solutions for a variety of network related services in the home segment. For instance, in FY2009, the company introduced Linksys brand home routers and access points supporting the 802.11n Wi-Fi standard; and Media Hub devices, which allow people to store, manage and share digital content throughout their homes. While, the company has a relatively weak presence in the consumer market, its competitors, such as HP, have stronger brand image and established distribution channels.

Cisco Systems, Inc. Datamonitor

Page 24

Cisco Systems, Inc.

SWOT Analysis

The companys weak presence in the consumer market requires intensive brand building activity in near term. Weakness in specific business segments Cisco has experience significant weakness in specific business segments in recent years. In FY2009, the companys switches, routers and other product segments, which together accounted for about 55% of the total revenues, reported revenues below the FY2007 values. The switches segments revenues declined from $12,432 million in 2007 to $12,025 million in FY2009, while routers segments revenue declined from $7,064.0 million in 2007 to $6,271 million in 2009. The other products segments revenues declined from $2,040 million in 2007 to $1,617 million in FY2009. As a result, the segments contribution to the companys total revenues also declined. The switches segments contribution to the total revenues declined from 35.6%in 2007 to 33.3% in 2009, while routers segments contribution declined from 20.2% in 2007 to 17.4% in 2009, and other products segments contribution declined from 5.8% in 2007 to 4.5% in 2009. The weakness in the routers and other products segments was mainly due to the slowdown in capital expenditure in the global service provider market. The service provider market is characterized by large and sporadic purchases, especially relating to the companys router sales and sales of certain of its advanced technologies, in addition to longer sales cycles. Sales activity in this industry depends upon the stage of completion of expanding network infrastructures, the availability of funding, and the extent to which service providers are affected by regulatory, economic and business conditions in the country of operations. Due to the global economic downturn, the capital expenditure of service providers has slowed down. Although, the switches, routers and other product segments showed slight increase in revenues in the second quarter of FY2010, they continue to remain below their historic levels. Further, the companys European operations continued to report declining revenues in the second quarter of FY2010. Moreover, as the European markets have not showed clear signs of recovery, the company will continue to face a difficult operating environment in Europe. Weakness in specific business segments may affect the companys operations in coming years.

Opportunities

Expanding portfolio of offerings Cisco has been expanding its portfolio of offering in recent years.The company expanded its presence outside the network solutions into areas such as storage, wireless, security, servers and other advanced technologies and emerging technologies, such as Cisco TelePresence systems, physical security and digital media products.The company is employing a combination of organic and inorganic initiatives to expand its offerings. Some of the companys expansions in recent years include the entry into the server market, in March 2009, by launching its Unified Computing System (UCS), an

Cisco Systems, Inc. Datamonitor

Page 25

Cisco Systems, Inc.

SWOT Analysis

offering that combines Ciscos networking, computing and virtualization capabilities for data centers market. Introduction of UCS marked the companys entry into server hardware market. The companys recent acquisitions in this direction include Pure Digital Technologies, a developer of consumer video solutions and creator of the Flip Video brand cameras, and Tidal Software, a provider of intelligent application management and automation solutions, in May 2009. Further, Cisco is planning to enter several new markets and consolidate its presence in the fast emerging markets like India and China in coming years. The companys expanding portfolio of offerings will allow it to explore cross selling opportunities as well as strengthens its portfolio. Positive outlook for cloud computing The demand for cloud computing is forecast to record strong growth in the coming years. The cloud computing is a business model used to describe services that are offered over the internet or software-as-a-service (SaaS). As the demand for cloud computing services is growing, demand for the related hardware, such as network equipment, storage and servers; and support services is also increasing. For instance, the cloud computing server market is forecast to grow at a compounded annual rate (CAGR) of over 10% during 2009-14.The demand is being driven by capital and operating cost advantage offered by the cloud solutions, through pay-as-you-go subscription model. Cisco is one of the leading providers of solutions for cloud computing. Moreover, the company has been expanding its portfolio in this market in recent times. For instance, in March 2009, it launched Unified Computing System, an offering that unites computing, networking, storage access and virtualization resources in a single system; and expanded its security services into cloud computing market in April 2009. Additionally, the company acquired Tidal Software, in May 2009, to strengthen its data center automation solutions business. The companys increasing presence in a growing market, will provide steady revenue growth in coming years. Growing demand for video collaboration The demand for enterprise video collaboration solutions such as videoconferencing and Telepresence has been increasing in the recent years. The demand for videoconferencing and Telepresence solutions is being driven by various advantages they offer, such as reduction in travel costs and time, and carbon footprint. Despite the worldwide economic slowdown, the worldwide video collaboration solutions market achieved double-digit growth in 2008 and 2009. Further, the market is forecast to continue its growth in near future. The videoconferencing and Telepresence revenues are forecast to record compounded annual growth rate (CAGR) of over 35% during 200914. Cisco is one of the leading players in the video collaboration solutions market. The companys unified communications products offer media-rich collaboration experience by integrating voice, video, data and mobile applications on fixed and mobile networks. Further, Cisco TelePresence solutions provide an innovative portfolio and integrated architecture for live, face-to-face communication.

Cisco Systems, Inc. Datamonitor

Page 26

Cisco Systems, Inc.

SWOT Analysis

Ciscos strong presence in the growing market provides it significant opportunities to increase its revenues and profits in coming years.

Threats

Intense competition The company faces intense competition in the networking and communications equipment markets, as well as in the unified computing solutions market. Cisco competes with numerous vendors in each product category. The companys major competitors include Alcatel-Lucent, Avaya, HP, Huawei Technologies, IBM, Juniper Networks, LM Ericsson and Motorola, among others. Further the companys entry into server hardware make through its virtualized server offering in 2009 has intensified its competition with leading IT hardware players such IBM, Dell and HP, which together command over 75% of the server market. Additionally, HPs $2.7 billion acquisition of 3Com strengthened its networking products offerings, further increasing the competition for Cisco. Intense competition may adversely affect the companys market shares and margins in coming years. Dependence on suppliers Cisco is significantly dependent on its suppliers and contract manufacturers for certain components. Due to its outsourced manufacturing strategy, Cisco has low control on the delivery schedules and has earlier suffered component shortages due to manufacturing process issues. Any persistent shortages in supplies due to capacity issues or manufacturing process issues will increase the price of these products. In such a situation, the company may not be able to source required components in adequate quantities. This will affect the business operations and margins of the company. Consolidation in the communications market The consolidation in communications markets has been a trend for several years. The consolidation among both the companys competitors and customers is expected to continue as companies attempt to strengthen or retain their market positions. For example, some of the companys competitors for enterprise data center business have made acquisitions and entered into strategic alliances, to provide end-to-end technology solutions for the enterprise data center. Further, companies that are strategic alliance partners in some areas of Ciscos business have been acquiring companies or entering into alliances with the companys competitors, reducing their business with the company. Consolidation will result in a stronger player which can be the sole-source vendors for customers. Further, customer consolidation in the service providers market will create large players with significant bargaining power.

Cisco Systems, Inc. Datamonitor

Page 27

Cisco Systems, Inc.

SWOT Analysis

Consolidation in the communications market will continue to affect the companys operating performance and market share in coming years.

Cisco Systems, Inc. Datamonitor

Page 28

Cisco Systems, Inc.

Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Cisco Systems, Inc.

Juniper Networks, Inc. Extreme Networks, Inc. Alcatel-Lucent Avaya Inc. Brocade Communications Systems, Inc. Check Point Software Technologies Ltd. F5 Networks, Inc. Hewlett-Packard Company Huawei Technologies Co. Ltd. Motorola, Inc. ARRIS Group, Inc Force10 Networks Inc Fortinet Inc Foundry Networks Inc International Business Machines Corporation LM Ericsson Telephone Company Meru Networks, Inc. Microsoft Corporation Riverbed Technology, Inc. Symantec Corporation Belden CDT Inc. Aruba Networks, Inc. Citrix Systems, Inc. LogMeIn, Inc. NETGEAR, Inc.

Cisco Systems, Inc. Datamonitor

Page 29

Cisco Systems, Inc.

Company View

COMPANY VIEW
A statement by John T Chambers, Chairman and CEO of Cisco Systems is given below. The statement has been taken from the companys 2009 annual report. Fiscal 2009 was an extraordinary year by any measure. Worldwide economic turmoil affected countries, companies, and households. At Cisco, we were not immune to the challenges, nor were our customers. Yet in spite of the global reduction in capital spending, we knew this was our time. The networkwith its ability to provide information, efficiency, and controlwould be crucial to solving some of the most complex problems our customers had ever faced. We pride ourselves on always being close to our customers. In fiscal 2009, we made it a priority to become even closer in order to understand their challenges, their pain, and their opportunities. This was the time to emphasize the relevancy of our product and solution capabilities, and to stand with our customers to face the uncertain economic future together. In our opinion, the power of the human network would never be more important. Vision / The Network as the Platform for Lifes Experiences Throughout the world, our customers faced significant, strategic decisions in fiscal 2009. Cisco was no different. We moved quickly and decisively at the beginning of 2009 to align our business with the most compelling market opportunities. We prioritized five business objectives: 1) building a next-generation company capable of forging next-generation customer relationships; 2) focusing on collaboration and Web 2.0 tools, both internally and externally, to maximize productivity and speed decision making; 3) enabling data center virtualization to reach levels of scale and efficiency that were previously unheard of; 4) readying all of our products and solutions for the escalating use of video; and 5) expanding our reach through the globalization of our enterprise. The networking and information technology market was clearly in transition, but capturing market transitions is what Cisco does best. We believe the network as a strategic asset has never been more relevant. Cisco products and solutions enable business and government transformation, healthcare connections, improved education, and a richer consumer experience. The Internet is everywhere. Providing products and solutions to enable more robust video delivery is key to Ciscos differentiation. It may have seemed a lofty statement years ago when we said that the network will change the way people work, live, play, and learn. Now more than ever, our vision is becoming reality. Strategy / Reaching Market Adjacencies Through a New Management Model The next phase of the Internet and its potential applications are fascinating. Our company is addressing no fewer than 30 market adjacencies, mostly in areas where networking technology and protocols have not seen widespread adoption. Industries such as healthcare, sports, entertainment,

Cisco Systems, Inc. Datamonitor

Page 30

Cisco Systems, Inc.

Company View

and utilities, as well as emerging geographic markets like China and India, provide significant opportunity to provide growth for Cisco and value to customers and shareholders. Capturing these opportunities requires that Cisco move with speed, internal alignment, and thought leadership. To accomplish this, we are pioneering a new management model based on Councils and Boards. Councils and Boards collaborate to set long-term direction for Cisco business strategies. They champion investments and prioritize market adjacencies based on go-to-market opportunities. Council and Board members represent diverse functions within the company, and are empowered to make decisions at the organizational level to help ensure that initiatives and goals are aligned throughout the company. Involving leaders across the organization is designed to produce balanced results across product lines and customer segments. In fiscal 2009, routing accounted for approximately 17% of total revenue, switching was approximately 33%, advanced technologies totaled 26%, and other revenue was approximately 5%. Service revenue grew to approximately 19% of total revenue in fiscal 2009. In terms of customer segments, Enterprise represents approximately 40% of our business, Service Provider is approximately 30%, Commercial provides approximately 25%, and Consumer provides approximately 5%. Balance across product lines and customer segments has historically allowed Ciscos overall financial performance to better withstand downturns in any one particular business segment. Execution / Operational Efficiency that Drives Innovation Cisco recorded near record quarterly revenue of $10.3 billion in the first quarter of fiscal year 2009, yet the remainder of the year was affected by monumental global recession. We are pleased with our overall performance in fiscal 2009 given the global recession. Revenue in fiscal 2009 was $36.1 billion, a decrease of 9% year over year from our highest annual revenue ever. In the fourth quarter of fiscal 2009, we experienced our only quarterly sequential increase in revenue during fiscal 2009. While the stabilization of fourth quarter results was encouraging, we are unable to determine whether or not this possible improvement in the global macroeconomic environment is sustainable. In fiscal 2009, product revenue declined by approximately 12% due in large part to reduced enterprise and service provider spending across our geographic theaters. The Public Sector performed better than other customer markets in fiscal 2009. Service revenue grew in each of the four quarters of fiscal 2009 to reach total annual revenue of $7 billion, an increase of approximately 8% over fiscal 2008. We continue to believe in the strategic value of our products, services, and customer relationships. History has taught us that you dont change long-term strategy based upon (what we hope will be) a relatively short-term economic downturn. However, we believed that we needed to work differently in order to execute our strategy of moving into multiple market adjacencies during such a tenuous time in the global economy. We forged ahead by reallocating over $1 billion in resources into market adjacencies in an effort to fuel growth over the long term. From an operational standpoint, we pursued a relentless focus on organizational efficiency and expense management to enable these investments.

Cisco Systems, Inc. Datamonitor

Page 31

Cisco Systems, Inc.

Company View

We clearly exceeded even our stretch goal for reduced operating expenses. Earnings per share on a fully diluted basis for fiscal 2009 were $1.05. Clearly our ability to reduce expenses in this environment met a financial priority. We viewed it as prioritizing our investments in innovation as well. By drawing hard lines to reduce discretionary expenses, including travel and meeting costs, we avoided the need for expense reductions in other areas, specifically companywide headcount reductions that would have affected product development and other efforts. Cisco invested $5.2 billion in research and development during fiscal 2009. We announced significant, industry changing solutions, including the expansion of our line of Aggregation Services Routers and the Unified Computing System, our first entry into the server market. Our unified computing platform is being hailed by customers and analysts as technology capable of completely transforming enterprise data centers. We view our balance sheet as a source of strength and competitive advantage, especially during economic downturns. We believe inventory and accounts receivable levels are appropriate and well managed. Total assets surpassed $68 billion at the end of fiscal 2009, including $35 billion in cash and investments held on a global basis. Cash generated from operations was $9.9 billion in fiscal 2009, a portion of which was used to repurchase 202 million shares of our common stock. In fiscal 2009, we completed several acquisitions that underscore our commitment to build a comprehensive collaboration portfolio. Fiscal 2009 acquisitions included Post Path, Inc., a leader in email and calendaring software; Jabber, Inc., a principal provider of presence and messaging software; and Pure Digital Technologies, Inc., creator of the Flip Video family of cameras and a pioneer in developing consumer-friendly video solutions. Cisco also acquired Tidal Software, Inc., a developer of intelligent application management and automation solutions designed to advance our data center strategy. We believe that technology can have a positive effect on the environment. Through the use of our own TelePresence technology alone, we saved thousands of hours of employee and customer travel, resulting in a dramatically reduced carbon footprint. As part of a larger ecosystem of customers and suppliers, we are proud of our ability to influence an even broader carbon footprint reduction on a global basis. Closing Thoughts / 25 Years and Counting When I reflect on the multitude of companies and competitors that Cisco has encountered in its 25-year history, I am proud of our companys history of growth and constant innovation. Cisco leads the world in development of networking technology, and has expanded its relevance in the communications and IT industry over time. From the first rudimentary routers to todays virtual machines, striving for product leadership has been the foundation of each chapter in Ciscos history. Listening to customers to help solve their most challenging problems will always be part of our DNA. Cisco is in the midst of one of the greatest market transitions that our industry has ever seen. Customers are realizing the potential that collaborative business models and network-enabled Web 2.0 technologies can have on their businesses and in their lives. We are thrilled to pioneer those

Cisco Systems, Inc. Datamonitor

Page 32

Cisco Systems, Inc.

Company View

applications with our customers and our employees as we strive to make Cisco a company that is best in the world and best for the world. The 65,000 faces of Cisco inspire me every day. I look forward to sharing the next chapter of this journey with you.

Cisco Systems, Inc. Datamonitor

Page 33

Cisco Systems, Inc.

Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office
Cisco Systems, Inc. 170 West Tasman Drive San Jose California 95134 USA P:1 408 526 4000 F:1 408 526 4100 http://www.cisco.com

Other Locations and Subsidiaries

Cisco Systems Australia Pty., Ltd. Australian Head Office Level 10 80 Pacific Highway North Sydney New South Wales 2060 AUS Cisco Systems Hong Kong, Ltd. 31/Fl.Great Eagle Centre 23 Harbour Road Wanchai HKG Cisco Systems, Inc. Level 19F-21F Tower E1 The Towers Oriental Plaza No. 1 East Chang An Ave Dong Cheng District Beijing CHN Cisco Systems India Pvt. Ltd. East Tower 7th floor 25 Barakhamba Road New Delhi 110001 IND Cisco Systems (HK) Perkantoran Hijau Arkadia Tower B 10th Floor Jl. TB. Simatupang Kav. 88 Jakarta 12520 IDN Cisco Systems - Egypt 135 Abdel Aziz Fahmi Street 2nd Floor Apartment 3 Heliopolis Cairo EGY

Cisco Systems 32 HaMelacha St. I.Z Sapir Poleg (South Netanya) 42504 ISR

Cisco Systems K.K Tokyo Kokusai Shin-Akasaka Building 2-14-27 Akasaka Minato-Ku Tokyo 107-0052 JPN

Cisco Systems, Inc. Datamonitor

Page 34

Cisco Systems, Inc.

Locations and Subsidiaries

Cisco Systems, Inc. Centuria Park Building 13 265 Von Willich Ave ZAF Cisco Systems Danmark A/S Kbenhavn Automatikvej 1 2860 Soborg DNK Cisco Systems France 11 rue Camille Desmoulins 92782 Issy les Moulineaux Cedex 9 FRA Cisco System Luxembourg Avenue JF Kennedy 46A 4th floor L-1855 LUX Cisco Systems - Kuwait Al Majmouaa Tower Markets Area Plot 9 Bulding 37 6th Floor Kuwait City KWT

Cisco Systems Belgium S.A. / N.V. Pegasus Park De Kleetlaan 6A B 1831 Diegem BEL Cisco Systems Finland Oy Lars Sonckin kaari 16 02600 Espoo FIN

Cisco Systems GmbH Kurfurstendamm 21-22 10719 Berlin DEU

Cisco Systems - UK 9-11 New Square Bedfont Lakes Feltham Middlesex TW14 8HA GBR Cisco Systems Canada Co. 181 Bay St Suite 3400 Bay Wellington Tower BCE Place Toronto ON M5J 2T3 CAN Cisco Systems New Zealand Employees Level 25 135 Albert Street P O Box 6624 Wellesley Street Auckland NZL

Cisco Systems Malaysia - Kuala Lumpur Unit 901D Level 9 Tower Block D Uptown 5 5 Jalan SS21/39 47400 Petaling Jaya Selangor Darul Ehsan MYS

Cisco Systems, Inc. Datamonitor

Page 35

Cisco Systems, Inc.

Locations and Subsidiaries

Cisco Systems Philippines 24th Floor Citibank Tower Citibank Plaza 8741 Paseo De Roxas 1200 Makati City PHL Cisco Systems 168 Robinson Road 28-01 Capital Tower Singapore 068912 SGP

Cisco Systems - Riyadh Abraj Building 15th Floor North Tower Riyadh 11351 SAU Cisco Systems South Korea 5F ASEM Tower World Trade Center 159-1 Samsung-dong Kangnam-ku 135-798 Seoul KOR Cisco Systems Vietnam Level 1 141 Le Duan Street Hoan Kiem District Hanoi VNM Cisco Systems Riverside Towers 52 Kosmodamianskaya Naberezhnaya Bldg.1, Floor 4 113054 Moscow RUS

Cisco Systems Taiwan Ltd. 6F/B 333 Tun Hua S. Rd. Sec. 2 Taipei TWN Cisco Systems Middle East 4th Floor Building 10 Sheikh Zayed Road Dubai Internet City Dubai ARE

Cisco Systems, Inc. Datamonitor

Page 36