Cisco Systems Inc at NASDAQ Investor Program Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Notter - Jefferies LLC - Analyst : Thank you very much, Phil. So there is a lot there that you threw out. I think the digitization theme is very interesting. I was at the Cisco Analyst Day a few weeks ago in San Diego and I think somebody said it very so succinctly. Silicon Valley is coming for you. If you run a business and if you look at the Fortune 500 list, it is a US list certainly but 57% of the companies that were on the list 10 years ago are now gone. So the pace of technology change is really very quick and again, you either adapt or you fall away. And so talk about digitization some more for us. I guess I'm interested in hearing some examples of customers who have bought into the digitization theme that you guys have sold infrastructure and solutions to. Kind of walk us through what exactly you are selling, how the pitch operates, put some more meat on the bone if you will for us. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 30, 2015 / 7:00AM, CSCO.OQ - Cisco Systems Inc at NASDAQ Investor Program

Question: George Notter - Jefferies LLC - Analyst : So again, I want to make sure I really understand the solution that Cisco is selling. So you are coming in and saying let's put in a datacenter infrastructure, here is our switching, here is our routing, here is UCS and you are wrapping around a professional services capability that is helping these guys on the development side launch applications, build out SDN environments. Help me exactly understand what precisely Cisco gets to sell there because when you talk about these applications and bimodal IT, I am thinking more about companies like VMware in some cases. I am thinking about IBM or again help me understand exactly where you guys kind of have a real leverage point in these kinds of conversations. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 30, 2015 / 7:00AM, CSCO.OQ - Cisco Systems Inc at NASDAQ Investor Program

Question: George Notter - Jefferies LLC - Analyst : I want to put this in context also. So you guys talked about I think you also expressed these digitization themes and opportunities as business value deals where you are conveying more than boxes or specific products. But I think in the last conference call you guys talked about having 1200 business value deals in the pipeline within Cisco. I guess my impression is it is still a pretty tiny fraction of the overall sales pipeline at Cisco. Help me understand exactly where you guys are in the process of selling quote unquote business value and what percentage of the pipeline might this account for and kind of where are we in the development of this effort?

Question: George Notter - Jefferies LLC - Analyst : I want to definitely have time to ask questions about the changes in the management team at Cisco obviously incoming CEO, Chuck Robbins, John Chambers becomes Executive Chairman. One of the common questions we are getting from investors is -- is there some potential for mis-execution around this whole management change inside Cisco? The guy who ran EMEA, Chris Dedicoat, obviously is now running sales, global sales across Cisco. So you've got a lot of guys I think kind of changing seats it sounds like. What do you think of all the changes going on here and do you worry at the margin there could be some mis-execution with all the revolving seats here?

Question: George Notter - Jefferies LLC - Analyst : Okay. I want to switch gears and talk about switching for a moment. It is 30% of the revenue stream at Cisco, roughly I think it is a little bigger in terms of the net income contribution. Kind of walk us through what is going on there. You have had a lot of change in the portfolio there, the Nexus 9000 is now the product the company is getting behind. It seems to me that ACI is really important for Cisco. You are trying to make sure the switching market doesn't fall down into a price per port game. You are selling value there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 30, 2015 / 7:00AM, CSCO.OQ - Cisco Systems Inc at NASDAQ Investor Program What has is your experience been here in the UK around ACI and customer receptivity and give us a sense for how it is doing?

Question: George Notter - Jefferies LLC - Analyst : Okay. I wanted to also ask about if I think about the data center environment it just goes phenomenally well in servers, certainly with UCS, 43,000 odd customers, Nexus I think is 53,000 odd customers. But the other leg of the stool so of speak in storage in the data center environment is storage and Cisco made an effort obviously with WHIPTAIL, didn't work out so well. Does Cisco need to be in the storage business? And I guess I am asking from your perspective you deal with big customers in the UK every day. Do you feel like that is something you can put in the kit for those customers and have success with? How do you think about that?

Question: George Notter - Jefferies LLC - Analyst : That is very helpful. Another big initiative inside the company is obviously security. Cisco has been very vocal about the architectural sale and security. You guys come at it from a network perspective. Talk about what is changing inside the security business right now within Cisco? I think on one hand you guys have now carved out a dedicated salesforce in security but from your vantage point how is Cisco doing and what can the company do better to really sort of maximize the security space?

Question: George Notter - Jefferies LLC - Analyst : We are running out of time. Thank you very much, Phil. This is fantastic. We appreciate it. Good luck to you and thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 30, 2015 / 7:00AM, CSCO.OQ - Cisco Systems Inc at NASDAQ Investor Program