Cisco Confidential© 2012 Cisco and/or its affiliates. All rights reserved. 1

Cisco Quick Hit BriefingDon't Lose on Price - Cisco Certified Refurbished Equipment Brian Avery

Partner Development Manager – Cisco Systems

Thursday, Jun 3, 2013

To join the audio portion, enter a call-back number in the Audio Conference dialog box.Connect using the audio conference box or by calling into the meeting:1. Toll-Free: (866) 432-99032. Enter Meeting ID: 200 985 630 3. Press “1” to join the conference.

Brian J AveryPartner Development Managerbravery@cisco.comPriors:Cisco Sales and Channels (8 yrs)President and CEO Cisco Premier Partner (6 yrs)Director of SalesCisco Silver Partner(2 yrs)Financial Analyst Sprint Corporation(7 yrs)

Agenda Introduction Quick Hit Overview,

Agenda Don’t Lose on Price: Cisco

Certified Refurbished Equipment

Cisco Promotions Tools and Resources

What Is a Quick Hit Briefing?• A weekly partner briefing series designed for

Cisco Commercial Territory partners• Concise, relevant updates on:

Cisco products and solutionsPartner programs and promotionsPartner Enablement – Demand Generation, Selling Skills, Closing Tools, etc.

Next Quick Hit BriefingUnified Computing System Deep DiveThursday June 13th, 9:30 ETRegistration link at: http://cs.co/quickhit

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Quick Hit Briefing ScheduleDate Topic Date TopicOct-18 Cisco BYOD Update Mar-28 Telepresence Opportunity for SMB Partners

Oct-25 Holy Promotions Batman - Promotions Update Apr-04 Strategic Upselling with Cisco

Nov-01 "I've Got Moves Like Jabber" Update Apr-11 Business Edition 6000 Deep Dive

Nov-08 Unified Computing System Overview Apr-18 The Evolution of Wireless to 802.11ac

Nov-15 Who's On First? - Navigating Cisco Resources Apr-25 Demand Generation Events - How to Be Successful

Nov-29 Demand Generation Ideas and Execution May-02 Financial Selling for Dummies

Dec-06 Cisco "Gear Up" Year-End Sales Opportunity May-09 Cisco Telepresence - Can You See Me Now?

Dec-13 WebEx Update - The $$ Opportunity You Are Missing May-16 Borderless Networks - Building a Foundation for Success

Jan-10 Customer Intelligence Systems - Contact Center Update May-23 Close More Deals with Cisco Capital

Jan-17 Business Edition Update - 3000 and 6000 May-30 Cisco Jabber versus Microsoft Lync

Jan-31 UCS Update - New release, features, pricing, etc Jun-06 Don't Lose on Price - Cisco Certified Refurbished Equipment

Feb-07 Catalyst Switching Update Jun-13 Unified Computing System Deep Dive

Feb-14 Security Update - ASA, Anyconnect, ISE, Ironport Jun-20 Maximize Your Cisco Services Potential

Feb-21 BE6000 Update and New Express Collaboration Specialization Jun-27 Maximizing Profitability with Cisco

Feb-28 21st Century Contact Centers Jul-11 Learn to Sell, Demo, and Close more deals with BE 6000

Mar-07 Cisco Wireless Portfolio Update Jul-18 Cisco Wireless Portfolio Update

Mar-14 HP Competitive Update

http://cs.co/quickhit/

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Cisco Certified Refurbished Equipment

Kyle Rowland, Remarketing Manager, Cisco Certified Refurbished Equipment, Cisco Systems

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Agenda

About Cisco Certified Refurbished Equipment

Q&AHow To View Inventory

Secondary Market

Frequently Asked Questions

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

The Cisco Secondary Market

$3 BillionGlobal

Annual Sales

• Market is large and growing- All customer segments- All Cisco technologies

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

Cisco Certified Refurbished EquipmentProgram Specifics• In existence since 2001• Cisco’s authorized division of refurbished equipment• Reside under Cisco Capital organization• New and end of sale Cisco products across all

technologies – 3,500+ products• Competitive Pricing 65-80% off New List• Supply available through Cisco supply chain and

lease portfolio• Sold through authorized Cisco resellers and

distributors or to direct Cisco customers

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Cisco Certified Refurbished EquipmentValue Chain

Remanufacturing ProcessProduct Sources Routes to Market

Stock Rotations

Service RMAand Trade-Ins

Lease Returns

Selective Buybacks

Manufacturing OverrunsEnd of Sale Inventory

Cancelled OrdersLab Equipment

Internal IT RefreshDirect

Customers

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

INSPECT UPGRADE TEST

REPAIR CLEAN AND RECONDITION PACKAGE

Cisco Certified Refurbished EquipmentRemanufacturing Process

Cisco Confidential 11© 2012 Cisco and/or its affiliates. All rights reserved.

Sparing Managed Services

• Used in lieu of 4-hour contracts

• Services savings cost – enabled when products go into production

• Use to lower hardware costs

• Managed services are usually SLA or service-driven sales

• Price savings story• Cisco warranty on all

boxes; customer should not care between new and refurbished

Infrastructure Projects

Cisco Certified Refurbished Equipment for Maximum Profitability

Cisco Confidential 12© 2012 Cisco and/or its affiliates. All rights reserved.

Part Number Qty Ext List Price Ext Net Price Part Number Qty Ext List Price Ext Net PriceC2951-VSEC/K9 2 $18,790 $5,412 C2951-VSEC/K9 2 $18,790 $7,027NEW-UWL-PRO 100 $50,000 $14,400 NEW-UWL-PRO 100 $50,000 $18,700L-CCX-90-N-E-LIC 101 $126,250 $36,360 L-CCX-90-N-E-LIC 101 $126,250 $47,218LIC-CUCM-9X-USR-B 344 $67,080 $19,319 LIC-CUCM-9X-USR-B 344 $67,080 $25,088LIC-CUCM-9X-BAS-B 4,329 $476,190 $137,143 LIC-CUCM-9X-BAS-B 4,329 $476,190 $178,095SP-INFORMACST-1K= 3 $97,200 $27,994 SP-INFORMACST-1K= 3 $97,200 $36,353UCS-CPU-E5-2680 4 $19,152 $5,516 UCS-CPU-E5-2680 4 $19,152 $7,163UCS-CPU-E5-2680 4 $19,152 $5,516 UCS-CPU-E5-2680 4 $19,152 $7,163UCS-HDD300GI2F105 32 $40,928 $11,787 UCS-HDD300GI2F105 32 $40,928 $15,307UNITYCN9-STD-USR 3,300 $247,500 $71,280 UNITYCN9-STD-USR 3,300 $247,500 $92,565UCSS-U-MSG-1-1 3,300 $33,000 $9,504 UCSS-U-MSG-1-1 3,300 $33,000 $12,342CP-6921-C-K9=  4,329 $1,017,315 $292,987 CP-6921-C-K9-RF 4,329 $437,229 $196,753CP-6961-C-K9= 143 $42,185 $12,149 CP-6961-C-K9-RF 143 $18,161 $8,172CP-7937G 100 $139,500 $40,176 CP-7937G-RF 100 $60,100 $27,045CP-7942G 101 $39,895 $11,490 CP-7942G-RF 101 $24,038 $10,817VG224 12 $64,740 $18,645 VG224-RF 12 $27,900 $12,555GLC-SX-MM 44 $22,000 $6,336 GLC-SX-MM-RF 44 $9,504 $4,277CAB-STACK-50CM 2 $200 $58 CAB-STACK-50CM-RF 2 $86 $39ER-USR-LIC-10-NEW 500 $100,000 $28,800 ER-USR-LIC-10-NEW 500 $100,000 $37,400CP-9971-C-CAM-K9= 100 $118,500 $34,128 CP-9971-C-CAM-K9= 100 $118,500 $44,319WS-C3750V2-48PS-S  44 $373,780 $107,649 WS-C3750V248PSS-RF 44 $225,544 $101,495CAB-STACK-50CM= 44 $4,400 $1,267 CAB-STACK-50CM= 44 $4,400 $1,646

$3,224,070 $928,532 $2,327,017 $931,299

71% Discount Needed 60% Blended Discount

Examples:Cal Poly & Boston Scientific

100% NEW CISCO BLENDED (NEW 61%, RF 39%)

Part Number Qty Ext List Price Ext Net Price Part Number Qty Ext List Price Ext Net PriceWS-C3750X-48PF-S  62 $868,000 $217,000 WS-C3750X-48PFS-RF 62 $374,108 $216,983

75% Discount Needed 42% RF Discount

100% NEW CISCO 100% RF

71% Discount Needed 60% Blended Discount

75% Discount Needed 42% -RF Discount

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Breadth of Product Lines• Continually evaluating Cisco Inc. products and adding new

refurbished products to portfolio• 3,500+ products, across all technologies• End of Sale products also available

Category Cisco Certified Refurbished Equipment Products

Switching Routing Data Center UCS Optical Wireless Security

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

Frequently Asked Questions

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

Can We Finance Cisco Certified Refurbished Equipment?• Yes, financing programs through Cisco Capital

available

• Help customers: Lower total cost of ownership Reduce financial risk Realize tax savings Simplify operating budgets Make the most of their capital budgets

• Work with Remarketing Manager or Cisco Capital Channel Account Manager for assistance

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

What if You Don’t Have Inventory in Stock?

• Contact your designated Remarketing Account Manager

• We can help you: Gain visibility to inventory going through

remanufacturing process See inventory coming back from Cisco

supply chain or Capital leases Search for a similar version of the

product Consider the previous-generation version

of the product, if applicable

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

Transparency• Pre-Owned Equipment price list and

availability available to all- Sign up at refurbquestions@cisco.com - View online at www.cisco.com/go/refurb

• Inclusion of stock not yet refurbished

• Dynamic inventory – check availability often

• Email us if desired products or quantities are not listed

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

Can I put products on hold or reservation?• Yes, product can be put on short-term

reservations

• If product is in stock on Cisco website (www.cisco.com/go/refurb),

− Contact your Distributor− Distributor’s Cisco purchasing team can create a

product reservation with Cisco

• If product is not in stock or shows insufficient quantities:

− Send request to refurbquestions@cisco.com

Objections

Cisco Confidential 19© 2012 Cisco and/or its affiliates. All rights reserved.

• Hidden costs – inspection and re-licensing fees may apply

• Possibility of poor quality and performance if not refurbished to Cisco standards

• Cisco typically will not support the product

I can get it cheaper from another source

• Hardware replacement only; no software support• Network functionality intelligence is in the software,

not the hardware• Will the seller be there tomorrow?

My source provides a warranty

• Fully tested and remanufactured to “like new” condition

• Same warranty and support options as new product• Fully supported by Cisco; sold through Cisco

authorized channels

Refurb = used = poor quality

Objection

Your Response:How Do I Overcome Objections to “Refurbished”?

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

Search InventorySame format with or without CCO log-in.

Query will return quantity available

for immediate shipment

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

Cisco Partner Promotions

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

Cisco Promotions http://www.cisco.com/go/promotions/

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23

Key Programs and Promotions• Opportunity Incentive Program | Click Here• Trade-in Migration Program | Click Here• Mid-Market Collaboration Promotion | Click Here• Collaboration Breakaway Plus | Click Here• Cisco BYOD Smart Solution Promotion | Click Here• UCS New Account Breakaway Promotion | Click Here• Cisco Fast Track Instant Rebates | Click Here

• Access all promotions and incentives | Click Here

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24

Tools and Resources

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25

Cisco Certified Refurbished Equipment Resources• Cisco Capital Refurbished Equipment Home Page |

Click Here• CCRE Contact List | Click Here• CCRE Partner Resources | Click Here• CCRE Program At-a-Glance | Click Here • Learn About our Remanufacturing Process | Click Here• Remanufacturing for a Greener Planet | Click Here• Frequently Asked Questions | Click Here

Thank you.

You have purchase options….we welcome the opportunity to partner with you to maximize your network investment.