Cisco Capital
New Consumption Models
Rick Phillips
Area Manager, Middle East and Africa
Cisco Capital
December 6th, 2011
© 2011 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
1
Global trends and impact on the Saudi Market
Cisco Capital overview and how it helps businesses
achieve flexibility
New consumption models
Q&A
© 2011 Cisco and/or its affiliates. All rights reserved.
2
Geopolitical
concerns
Inflationary
pressures
Equity markets
volatility
Market uncertainty
– double dip?
Global demand
for resources
Exchange &
interest rate
volatility
© 2011 Cisco and/or its affiliates. All rights reserved.
Business
confidence
Inconsistent
market expansion
Political change
Vulnerability to
global trends
3
•
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Cisco Capital is very successful in Saudi Arabia
Financed $100’s of millions already
One of the highest penetration rates in all of Emerging Markets
We are the only IT Vendor who offers Direct Islamic Financing in
Saudi Arabia
Direct finance agreement with Cisco Capital not via intermediary
banks
Dedicated Cisco Capital origination, operations and legal team
Cisco Capital is fully supported by Cisco Capital Dubai, which is
fully licensed and regulated by the DIFC
Cisco Capital is fully integrated with the Cisco Saudi team and is
able to offer fully integrated solutions
© 2011 Cisco and/or its affiliates. All rights reserved.
4
Countries Offering
Technology Financing
Billion in Assets
Countries Offering
Channel Financing
Countries Offering
Pre-Owned Equipment
Employees
Since
the Leading Provider of
Financing for Cisco Solutions
Enabling profitable growth through innovative financing
© 2011 Cisco and/or its affiliates. All rights reserved.
5
Technology
Financing
Channel
Financing
Pre-Owned
Equipment
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
© 2011 Cisco and/or its affiliates. All rights reserved.
6
Protection from
tech obsolescence
equipment lifecycle
management
Customer
intelligence and
industry
relevance
Matching
benefits with costs
Alternative
source of
capital
Cash preservation/
minimize upfront
investment
Flexibility to upgrade to
more green
technologies
© 2011 Cisco and/or its affiliates. All rights reserved.
7
Cisco
balance
sheet
Integration across
Cisco and Channel
partner
communities
Insight into Cisco
architectural
roadmaps
End-to-end
capabilities and
solutions
© 2011 Cisco and/or its affiliates. All rights reserved.
8
70%
Agree the availability of financing was critical in choosing their IT
supplier
45%
Prefer to evaluate leasing and financing options in the early scoping
and planning stages
60%
Rely on leasing to protect against obsolescence and establish a
discipline for equipment replacement (lifecycle management)
58%
Leasing is a way to free up capital for other uses
48%
Said their companies use leasing to balance project costs with future
benefits, accelerating their ROI
47%
Shift costs between capital and expense budgets
Source : IDC Customer Survey: May 2010; N = 154
© 2011 Cisco and/or its affiliates. All rights reserved.
9
Allows customers to pay less in the early stages of solution
implementation and ‘step up’ payments over time
Customer Payments to Cisco
This enables the customer to better align costs with revenue
Financing Payments
06
12
18
24
Time (Months)
Committed Payments
© 2011 Cisco and/or its affiliates. All rights reserved.
10
Customer Payments to Cisco
The customer enters into a Lease Agreement for the chassis and leases
blades for different terms. This enables the customer to keep their chassis
longer and refresh their blades more frequently; which combines the
benefits of buying and leasing
Expansion Cards
Expansion Cards
Expansion Cards
Chassis & Base Kit
0
6
12
18
24
30
36..................................................................60
Time (Months)
Committed Payments
© 2011 Cisco and/or its affiliates. All rights reserved.
11
Me, Rick Phillips
[email protected]
Area Manager
Middle East & Africa
Hani Araman
[email protected]
Financial Solutions Manager
Saudi Arabia
Or for more information, visit our Middle East website
www.ciscocapital.com/me
© 2011 Cisco and/or its affiliates. All rights reserved.
12
Thank you.