Feature Story

Cisco's fiscal year 2007 was characterized by the acquisition of eleven strong technology companies, including WebEx, a market leader in on-demand collaboration applications; Reactivity, a leading XML (eXtensible Markup Language) gateway provider for organizations ranging from commercial enterprises to the Global 500; and IronPort, a leading provider of messaging security appliances focusing on enterprise spam and spyware protection. Other key highlights from fiscal year 2007 include the launch of Cisco TelePresence, a revolutionary new category of products that create live, "face-to-face" meeting experiences over an Internet Protocol (IP) network empowering users to interact and collaborate in ways they could not before. In addition, Cisco announced that it shipped 900 CRS-1s in the first three years, driving residential and business IP service growth.

Following are significant highlights from the fiscal year:

• Cisco acquired eleven companies, most notably WebEx, a market leader in on-demand collaboration applications. Other acquisitions included Five Across, Inc., Broadware Technologies, and Orative Corporation.
• Cisco Smart Business Communications System was launched to help channel partners to enhance profitability, remain more competitive and improve customer relationships.
• In Internet routing, the Cisco 12000 Series routing platform surpassed the $10 billion mark in revenue in 10 years, with more than 35,000 systems installed globally since its introduction in September of 1997.
• CRS-1 Four-Slot, an extension to Cisco's industry-leading Carrier Routing System, was introduced to provide 320 gigabits-per-second (Gbps) of total switching capacity in the industry's most compact 40 Gbps-per-slot chassis.
• Cisco added 3G wireless to its Integrated Services Routers, enabling more connectivity options for enterprises and new business opportunities through adding an integrated third-generation (3G) wireless connectivity option and doubling the scalability of its integrated wireless local-area network (LAN) support.
• Cisco and Sprint together announced the Cisco 3G Wireless WAN High-Speed WAN Interface Card (HWIC) solution, for use with applicable Cisco Integrated Services Routers. Part of the Cisco Internet Protocol Next-Generation Network (IP NGN) architecture, it provides high-speed wireless data access via the Sprint Mobile Broadband Network to provide true redundancy for high-availability corporate networking solutions.
• In switching, Cisco announced an integrated branch-office solution that accelerates the performance of any TCP-based application across the wide-area network (WAN) and enables the consolidation of the branch office server, storage and backup infrastructure for easier management and lower cost.
• Scottrade announced a build-out and migration of their data center which was a joint effort between Scottrade, Cisco, EMC, Dell and Microsoft. The project, which is nearing completion of the second phase, was designed by Cisco's Advanced Services, a worldwide organization within Cisco that helps customers achieve a high-performance network with high availability and security while reducing total cost of ownership.
• In unified communications, Cisco delivered a new solution to improve and personalize real-time global business collaboration. This provides more efficient ways for companies to collaborate and extend mobility benefits to all employees while expanding unified communications offerings for small and medium- sized businesses.
• Cisco shipped its 10 millionth Cisco Unified IP Phone, which was delivered to Bank of America, one of the world's largest financial institutions.
• In the security arena, Cisco raised the Self-Defending Network's power to a new level, simplifying the ability for organizations to control and contain information security threats in a more coordinated, flexible fashion across networks, while streamlining management and protecting confidential communications to remote users.
• Cisco, EMC and Microsoft aligned to offer a comprehensive technology architecture to help protect and share sensitive government information. The Secure Information Sharing Architecture (SISA) combines applications, information infrastructure and networking technologies to help protect customers' existing IT investments.
• In storage networking, Cisco announced its vision for next-generation data centers and broad array of innovative new data center products and solutions that will enable customers to better utilize their data center resources, deploy more robust business continuance, build cost-effective storage area networks, and enhance data security.
• In wireless, Cisco introduced Cisco ServiceMesh, the industry's first integrated, end-to-end outdoor wireless solution designed for service providers who are deploying citywide municipal Wi-Fi networks.
• Cisco reached a major milestone as the enterprise installed base of wireless access points reached four million, driven by increased enterprise demand for mobility services and unprecedented channel penetration in key markets.
• ScottsMiracle-Gro has deployed CiscoWide Area Application Services (WAAS) solutions to increase branch office worker productivity by accelerating the performance of business critical applications.
• Linksys announced the Network Storage System with 2 Bays (NAS200), which helps enable consumers to share, utilize, and secure valuable data over their networks. Linksys also introduced new line of SIP-based telephony products targeting SOHO and very small business customers.
• Scientific Atlanta announced that Dutch cable operator Casema has selected the Explorer® 8455DVB^TM high-definition television (HDTV) Personal Video Recorder (PVR) set-top for the expansion of digital interactive video services in the Netherlands and a new-generation IP statistical multiplexing (stat mux) to support high-quality, low-bit-rate, bandwidth-saving video delivery and provide breakthrough performance for creating or expanding channel bouquets.
• In the Emerging Technologies, Cisco Digital Media System, a new emerging technology, will help enable organizations to use business-quality, dynamic video and audio to easily connect customers, employees, partners or students anywhere, anytime.
• Cisco TelePresence capabilities were extended to enable virtual meetings in multiple locations at one time and to provide businesses with the freedom to organize meetings with customers or partners outside the corporate firewall.
• Cisco introduced Cisco IP Interoperability and Collaboration System (IPICS) 2.0, which helps enable personnel within the same or different agencies to communicate across previously isolated radio, IP and non-IP networks.
• In industry vertical markets, Cisco announced the formation of the Community for Connected Health, a Cisco-sponsored forum dedicated to sharing best-practices for using information to drive better healthcare.
• Cisco In-Store Mobility Solutions was designed to help transform retail store environments to deliver highly secure, manageable and extensible mobile solutions that enable businesses to improve their operations and enhance the consumer experience.

Select customer highlights from the fiscal year include:

United States and Canada:

• Oakland Athletics (A's) and Cisco announced a broad business, marketing and technology agreement to build the world's most technologically sophisticated baseball park in Fremont, Calif. to be named "Cisco Field."
• Rogers Communications, Canada's leading diversified cable, telecommunications, media and information services company, has selected CiscoTelePresence to improve productivity and collaboration between its offices across Canada.
• Regus Group, the world's leading provider of workplace solutions, selected Cisco to provide the first public TelePresence service offering, enabling Regus' clients to book virtual meetings at any of 50 selected locations.
• Cleveland Metroparks Zoo is now providing video learning programs from many of its animal exhibits throughout the 168-acre park using Cisco wireless mesh technology provided by Total Systems Integration, Inc.

Europe:

• The City of Amsterdam is building a city-wide glass fiber network using Cisco Ethernet Fiber to the home technology to deliver telephony, TV and Internet services.
• Real Madrid Football Club is using Cisco networking, security and Unified Communications technologies to deliver video, voice, data and wireless services over a single network to its fans, corporate customers, employees and the press.
• TeliaSonera, a leading telecommunications company in the Nordic and Baltic region, is deploying the Cisco CRS-1 Carrier Routing System at the core of its Internet Protocol Next-Generation Network (IP-NGN) to support multimedia and Internet traffic growth.

Japan:

• Fujitsu Limited and Cisco launched sales in Japan of a four-slot model of the co-branded "Fujitsu and Cisco CRS-1" Carrier Routing System.
• Tohoku-Electric Power Co., Inc. has selected the Cisco wireless networking solution to build large-scale wireless LAN networks connecting 13,000 devices across 122 locations to improve communication and information sharing among employees.
• Nippon Telegraph and Telephone Corporation (NTT) will conduct trials on the connectivity of the Cisco TelePresence system and make proposals for application services.

Emerging Markets:

• Cisco announced a significant investment initiative in Turkey totaling up to US $275 million (Turkey New Lira 400 million) over five years to address the areas of country transformation, innovation, entrepreneurship, leasing and finance, education and staffing.

MTN South Africa will deliver a suite of data, voice and video services over an IP Next-Generation Network, the core of which is based on the Cisco CRS-1 routing system.

Bulgarian Telecommunications Company has built on its Cisco IP Next Generation Network (IP NGN) to enhance service offerings to its enterprise clients and 2.5 million-plus residential phone and Internet customers.

APAC:

• Singapore Telecommunications Limited (SingTel) will be deploying a Wi-Fi mesh network from Cisco in the North region of Singapore.
• Kuala Lumpur International Airport (KLIA) can now enjoy improved wired and wireless Internet access following a network upgrade by Malaysia Airports Holdings Berhad.
• Hong Kong Cyberport and Cisco announced a pioneering model at Cyberport for a city-wide Wi-Fi network empowered by a Cisco wireless local area network.

In Cisco's Channel Partner Program:

• The Master Security Specialization was introduced; a new brand that represents the highest level of partner specialization and depth of expertise.
• Cisco Capital expanded its financing capabilities through agreements with Citibank, GE Capital Solutions and Standard Chartered Bank.
• Cisco Service Contact Center and Cisco E-Consulting for Partners were announced; two global offerings to help channel partners simplify the process of selling and delivering services, enhance their services portfolios, and improve customer satisfaction and loyalty.