cisco capital: financing business innovation- rahul sharma

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Cisco Capital:Financing Business Innovation

Rahul SharmaHead – Channel SalesCisco Capital IndiaNov 26, 2014


Pace of change

Business confidence

Global Economy

Geo-political concerns

Currency volatility

Equity markets volatility

Inconsistent market expansion

Dynamic Technology Environment

Challenging Times…

BYOD Regulation ComplianceCloud


Capital optimization

Flexible end-of-lease options

Lower cost of acquisition

Expenses matched with arrival of benefits

Tailoredfinancialsolutions

Attractive migration choices

Optimized lifecycle management

Less financial and operational risk

Maximized shareholdervalue

Financing Business Innovation


Financial lifecycle management

Acquire the technology that aligns to the business vision and needs

Leverage flexible financial

foundation according to

equipment life

Include maintenance and lock in pricing for

multiple years

Flexible refresh and upgrade

options. Flexibility to

adapt as needs change

Proper/ green disposal

Eliminate asset decommission

costsSimplicity of

return


The CFO…is an important IT budget decision maker

41% of organizations say it is the Head of Finance who controls the IT budget.

2013 Gartner FEI CFO Technology Study; 2013 Forrester “Financing in the Current Macro Economic Environment (APJC)” July 20132013 Forrester Consulting “Financing in the Current Macro Economic Environment (EMEA),” May 2014

“ The CFO continues to lead the IT investment decision process. 25% said the CFO alone authorizes all technology investment decisions, while less than 10% said that the CIO alone authorizes IT investment decisions.”


Fundamental shift in purchase decisions…What assets should I acquire?(‘What to Buy’ = investing decision)

How should I pay for them?(‘How to Buy’ = financing decision)

Very different motivationsVery different expectationsVery different assessment criteriaVery different conversations


Drives Deal Growth

Enables Total Solution Selling

Increases Account Control

Enables Sales

Expands Customer Conversations

Increases Cash Flow & Profitability

Partner Benefits of End User Financing


Cisco Capital’s Value Proposition

Larger Deal Size20% to 35% bigger

Higher Win RateRange 3% (low) to 12%(high)

Lower Discount0.5% lower discount

Why Cisco Capital Our Goal

Every 1% of increase in financing penetration =

$100M in incremental Cisco bookings


Just Switch It (JSI) Migration

Low Rate offer (3%*) on duration of financing term when migrating from an installed Catalyst 6500 to Catalyst 6800 or Nexus 7K/9K

Cisco Capital India offers/capabilities

Expires: 25 July 2015

Subsidised Financing for

Multi-year (MY) Services Contracts

Very low interest rate financing on end-user MY services contracts of 24 months or more.


Data Center Risk Pool

Increased residuals taken for: All UCS deals & standard Vblock configurations as part of the converged infrastructure solution.


Payment Deferrals

Cisco Capital can structure three or six month deferral periods (with the interest rolled into financing payments) that allow our customers to align payments to project cycles


Commercial - Subsidised

Interest offer (WIP)

Interest rates subsidised by upto 400 basis points (depending on the credit rating of the customer)

Expires: 24 April 2015


• Migrate your customers’ existing Cisco Catalyst® 6500 equipment to Cisco Catalyst® 6800 or Cisco Nexus™ 7000 or 9000

• Enjoy financing at 3% ROI on the full contract value of the new purchase (products, services and maintenance)

• Fixed rate for the entire financing term

• Tenure: 24 – 60 months

• Valid until July 25, 2015

Just Switch It - Catalyst 6500 Migration

3% interest on the entire purchase* (*other terms and conditions apply)

Catalyst 6800X Nexus 9000 Nexus 7000


Windows Server 2003 Reaches End of Life July 14, 2015

SecurityComplianceCost


To help ease your transition Cisco Capital is offering deferred payments – no need for any upfront cash investment. Defer your payments for 6 months with predictable payments with this special offer.*

• Enhance UCS residuals

• 6 months free from payments

• Available for all Cisco hardware, software, bundled services and complementary Microsoft technology

• Applies to all $1-out and FMV financing

• Offer valid through July 25, 2015

*Additional offers available and vary per country, contact your local representative or visit www.ciscocapital.com for additional information

Windows Server 2003 Migration Financing Offer

http://www.ciscocapital.com/


Windows Server 2003 migration to Cisco UCS Mini

Scenario Estimated Price (S$)

A Platinum Cisco UCS Mini Bundle for Windows Server 2003 migration for a <50 employees company

$75,393

Cash price: $75,393Rental : $2,097/month Savings: $110

The productivity benefits of UCS are the same whether you pay US$75K upfront or

US$1.99K per month

• Estimates based on current financing rates. Actual rent will be quoted on a case by case basis. Terms and conditions apply.

UCS Migration Promotional

Offer

Rental : $7,057 Cost Saving : $12,611

Standard Rental Pricing


Windows Server 2003 migration to Cisco UCS Mini with VDI

ScenarioEstimated Price (S$)

A Platinum Cisco UCS Mini Bundle for VDI deployment in an enterprise environment for 500 employees

$266,663

Opportunity to migrate, prior to July 2015 EOL, at

just $7.06K per month versus $267K in CapEx …

saving $12K in the process

Cash price: $266,663Rental: $7,421/month Cost savings: $493

Rental: $7,057Cost savings: $12,611

* Estimates based on current financing rates. Actual rent will be quoted on a case by case basis.** Minimum financing amount for promotional offer is S$129,000. Terms and conditions apply.

Standard Rental Pricing

UCS Migration Promotional

Offer


• Immediate budget availability to meet the July 2015 EOL deadline

• Enhanced residuals to lower your total cost of acquiring on premise solutions

• Potential to buy and lease back your existing in-place servers

• Total solution financing – UCS, Microsoft, required services

• Down to 100k

Speak with Cisco Capital about Windows Server 2003 Migration to Cisco UCS


Financing the Unified Data Center

Simplify their adoption of virtualization Lower costs, avoid budget constraints, protect against

obsolescence, contribute to green strategy, discipline of equipment replacement

Increased percentage of non-Cisco products that can be financed for Unified Computing System (UCS) deals

Increased residuals on UCS deals Increased residuals for all third-party hardware as part of a Cisco Data Center converged

infrastructure opportunity Available on residual-based leases when financed with Cisco Capital

Customer benefits

Sales benefits

Visit www.cisco.com/capital/contacts to identify your local Cisco Capital representative to learn more!

http://www.cisco.com/capital/contacts


Offer Criteria


Commercial - Subsidised Interest offer (WIP)• Offer Overview: Interest rates subsidised by upto 400 basis points (depending

on the credit rating of the customer)

• Availability Period: Dec 2 launch to the end of Q3 FY15

All deals booked by last day of Q3FY15 qualifies (regardless of funding date)

• Credit: All transactions are subject to individual credit approval

• Financing Term Eligibility: 36 months

• Minimum transaction size: US$100k

• Financing Products: Full Payout Lease or Loan


Partner Actions

Review Installed base for Cat 6500Identify opportunities for migration to Cat 6800 or Nexus 7k or Nexus 9k

Microsoft 2003 migration

Meet with PAM team for data on installed base to

Spending time with partners to review installed base

The deals need to be flagged off as "Capital required” (or suitable capital program option) in SFDC.

Thank you.

cisco capital: financing business innovation- rahul sharma

Technology

cisco confidential

cisco andor

incremental cisco bookings

forrester financing

financing penetration

forrester consulting

duration of financing

investment decision