IBS, HYDERABAD

[CISCO]
 Acknowledgement

We would like to express a word of thanks to those, whose sincere advice and
information, made the project very educative and informative.

Every endeavor requires an effort or

contribution from many people and this is no different. We wish to express our
sincere thanks to Prof. C.V.A. PRASAD RAO (Faculty - IBS, Hyderabad) for
his unstinting guidance and support throughout the project. He has been a great
source of motivation to all of us.

2
 TABLE OF CONTENTS

1.0 INTRODUCTION…………………………………… 4

1.1 MARKET STATISTICS…………………………….. 4

1.2 MARKETING MIX- THE FOUR P'S……………… 6

2.0 PRODUCT……………………………………………. 8

3.0 PRICE………………………………………………….15

4.0 PLACE PROMOTION……………………………….18

5.0 INDUSTRY BUYING BEHAVIOR………………….20

6.0 COMPETITIVE ADVANTAGE…………………......27

7.0 PORTER’S FIVE FORCES…………………………..27

REFERENCES………………………………………...31

3
1.0 INTRODUCTION-

Telecommunications industry deals with the activities and services of electronic systems for
transmitting messages through cables, telephone, radio or television. World telecom industry is
an uprising industry, proceeding towards a goal of achieving two third of the world's telecom
connections. Over the past few years information and
Has changed in a dramatic manner and as a result of that world telecom industry is going to be a
booming industry. Substantial economic growth and mounting population enable the rapid
growth of this industry.

The world telecommunications market is expected to rise at an 11 percent compound annual

growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone,
Verizon, SBC Communications, Bell South, Qwest Communications are trying to take the
advantage of this growth. These companies are working on telecommunication fields like
broadband technologies, EDGE(Enhanced Data rates for Global Evolution) technologies, LAN-
WAN inter networking, optical networking, voice over Internet protocol, wireless data service
etc.

1.1 Market Statistics:

4
5
1.2 Marketing mix- The Four P's
Marketing decisions generally fall into the following four controllable categories:

1. Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible products are
service based like the tourism industry & the hotel industry or codes-based products
like cell phone load and credits. Typical examples of a mass produced tangible object
are the motor car and the disposable razor. A less obvious but ubiquitous mass
produced service is a computer operating system. Packaging also needs to be taken
into consideration.

2. Price – The price is the amount a customer pays for the product. It is determined by
a number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may increase
or decrease the price of product if other stores have the same product.

3. Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet. Place is not exactly a physical store where it is available
Place is nothing but how the product takes place or create image in the mind of
customers. It depends upon the preciseness of customers.

4. Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations,
personal selling and sales promotion. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from cinema
commercials, radio and Internet adverts through print media and billboards. Public
relations are where the communication is not directly paid for and includes press
releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and
events. Word of mouth is any apparently informal communication about the product
by ordinary individuals, satisfied customers or people specifically engaged to create
word of mouth momentum. Sales staff often plays an important role in word of mouth
and Public Relations

6
7
 2.0 Product-
Cisco: Siemens:

Cisco product line is divided between three categories: It offers the business a range of products on the basis
of size and the scope of the organization.
1. Enterprise and service provider(networking
1. Communication Systems for Large Enterprises
solutions)
2. Small business 2. Communication Systems for Small & Medium
Businesses
3. Home
3. Network Infrastructure and Security

Network Systems Communication System For Larger

Products Enterprise

 Routers  OpenScape UC Server

 Switches  OpenScape Voice
 Wireless  Hipath 4000
 Security
 Physical Security and Building Systems Communication Sytem For Small And Medium
 Optical Networking Enterprise
 Network Management
 Cisco IOS and NX-OS Software  Openscape Office
 Interfaces and Modules  Hi Path open office Medium edition

Data Center Network Infrastructure And Security

Products  Chassis Switches/Routers

 Stackable Switches/Routers
 Unified Computing  Standalone Switches/Routers
 Application Networking Services  HiPath Wireless
 Storage Networking  Visibility & Control
 Data Center Switches  Advanced Security Applications
 Blade Switches
Fixed and Mobile Networks for Carriers
Small Business
 Carrier Services
 Managed Services
 Routers & Switches
 Security & Surveillance  Mobile Broadband
 Voice & Conferencing  Networks Solutions
 Wireless  Subscriber Data Management
 Network Storage
 All Small Business Products IT Security
 All Small Business Services
 Network Security Services
Home  Security Solutions

 Home Networking (Valet and Linksys) 8

 Flip Video
 More for Home
Cisco:
High-End Routers

The Cisco 7000 family of high-end internetworking platforms delivers the exceptional performance and
availability needed for today's mission-critical networks. Built using leading-edge technology from Cisco
Systems, the Cisco 7000 family offers unmatched performance and a clear path to next-generation
technologies, including Asynchronous Transfer Mode (ATM).

Cisco WAN Solutions

Cisco Systems is the leading supplier of reliable, high-performance and high-efficiency communication
backbone solutions and StrataCom is the pioneer of cell switching technology and a leading supplier of
high-performance wide-area network (WAN) switching systems in both the Frame Relay and ATM
markets. Cisco and StrataCom have joined forces to provide ATM and Frame Relay high-speed wide-area
network (WAN) switching equipment that integrates and transports a wide variety of information to
provide end-to-end multimedia solutions across public, private, or hybrid networks.

Cisco Switching Solutions

Cisco Systems provides the strategy, products and technologies to meet the demand for more bandwidth
and throughput in workgroup networks. With Cisco's Switching Solutions, users can migrate from today's
world of shared 10BaseT to the more powerful options that are either available now or coming soon --
options such as switched local-area networks (LANs); high-speed LANs such as Copper Distributed Data
Interface (CDDI), or Fiber Distributed Data Interface (FDDI); the various types of Fast Ethernet,
Asynchronous Transfer Mode (ATM), and Gigabit Ethernet.

Cisco IP Telephony

The integration of telephony services into the data network has the potential to drive major changes in
institutions by delivering information more pervasively and completely than today's multinetwork
approach. Cisco's IP telephony products and Voice over IP (VoIP) solutions will leverage your exisiting
productivity of individuals in enterprises worldwide. By marrying telephony and data infrastructures, a
customer's network is easier to manage, expand, and over time, is less costly.

Open Programmable Switches

An open programmable switching platform such as the VCO/4K provides an open call model and
standard API that supports the cost- effective and rapid development of core transport (e.g. Class 4) and
enhanced (e.g. calling card) services. This is in contrast to proprietary central office switch solutions in
which service providers source all the hardware, software, and applications from a single vendor. These
"big iron" switches do not provide the rapid deployment of enhanced voice services demanded by today's
competitive market.

9
Cisco Small/Medium Business Solutions

Cisco solutions tailored for small- to medium-sized businesses to increase LAN performance and
seamlessly integrate office LANs with remote sites and the Internet. These products are available through
your local reseller.

Cisco Access Solutions

Cisco's Access Solutions give you seamless asynchronous and ISDN remote access for enterprise
telecommuting, Internet access, branch-site connectivity, and education. Cisco's end-to-end remote access
products protect your investments with a complete solution, delivered as a wide range of interoperable
hardware and software options. That includes integrated, easy-to-use remote access software, tamper-
proof security, and reliable, high-performance access servers at the enterprise end, all backed by Cisco's
powerful Internetwork Operating System (IOS) and familiar central-site management software.

Cisco ATM Solutions

Cisco Systems offers a wide variety of ATM Solutions for your internetworking environment: The Cisco
LightStream 2020 is a multiservice ATM switch for campus and wide-area applications; the LightStream
1010 is Cisco Systems' next-generation ATM switch for workgroup and campus backbone deployment.
Cisco also offers ATM SBus and PCI Adapters, and ATM modules for core routers, access routers, and
LAN switches.

Cisco InterWorks Solutions for SNA/IBM

Cisco provides a broad range of products and solutions for the IBM marketplace that maximize
availability, scalability, performance, flexibility, and management. Much of this functionality is available
through Cisco IOS software, which provides IBM internetworks with a clear migration path to the future
while protecting investments in existing equipment and applications. Our new CiscoBlue strategy
provides a roadmap for IBM Internetworking customers who want to consolidate duplicate networks,
effectively manage SNA and non-SNA resources, and integrate IBM networks into higher-speed switched
internetworks.

Web Scaling Products and Technologies

Cisco's Internet Solutions are led by the CiscoAdvantage product suite, which improves network
managers' ability to cope with several challenges posed by the growing popularity of the Internet,
including security, high volumes of network traffic and the shortage of network addresses.
CiscoAdvantage products are designed for use both by Internet service providers and by companies who
manage their own networks. They are the first products of their kind that harness the intelligent
capabilities of internetworks to offer smarter services to network users who want to access the World
Wide Web.

10
Security Products and Technologies

Successfully using Internet technologies requires an increased need to protect valuable data and network
resources from corruption and intrusion.

Cisco IOS Software Solutions

Cisco IOS(TM) software solutions, which address the end-to-end network connectivity needs of small,
medium, and enterprise customers, are proliferated through Cisco's many partner and OEM relationships
around the world. Cisco IOS technologies provide network scalability, modularity, portability, and
embedded functionality, including multimedia, security, network management, dialup, and Internet
applications.

Network Management

Cisco provides applications that centralize management, automate routine tasks, and can be integrated
into customers' existing network management environments. These include applications for enterprise and
switched internetwork management, remote monitoring, device management, ATM management,
simulation-based planning and problem-solving, performance analysis, and more.

Product overview of Siemens

OpenScape UC Server

Our OpenScape UC Server removes the artificial legacy barriers between traditionally separate
voice, video and IP communications to deliver a comprehensive suite of unified communications
applications. With OpenScape Unified Communications Server, your business can streamline
operations and access a range of communications applications over your existing IT
infrastructure.

OpenScape Voice

OpenScape Voice allows you to deploy voice communications in the data center just like any
other business critical application. Designed for IP communications, it offers carrier class
resiliency and is scalable from just 300 users to a global enterprise with 100,000 users.

HiPath 4000

Manage IP communications in real time

Openscape Office

integrated with Microsoft Outlook, the industry’s first software-based unified communications
solution built specifically for small and medium businesses

11
Hipath 3000:

small business telephone system supporting from 20 to 500 users

Chasis Switches and Routers

Enterasys modular chassis-based switches provide businesses with maximum flexibility and scalability,
as system components can be added or changed over time to adapt to evolving needs. Enterasys S-Series
and N-Series flow-based switches offer the industry’s most granular visibility and control of individual
users and voice/video/data applications. Capable of being deployed as premium edge access devices,
distribution layer aggregation switches, enterprise-class core routers, or data center server farm solutions,
the S-Series and N-Series deliver unsurpassed reliability, scalability, and fault tolerance.
Stackable Switches And Routers
Enterasys provides a variety of stackable switch platforms to meet a range of business needs, from entry-
level switching capabilities found in the A-Series to advanced routing and IPv6 support in the C-Series to
support demanding applications such as voice and video. With the ability to stack up to 8 switches in a
rack but manage the stack as a single switch, Enterasys stackable switches provide enterprise-grade
capacity and functionality as well as investment flexibility. Additionally, long term investment protection
is ensured with a comprehensive limited lifetime warranty.

Standalone Switches And Routers

The Enterasys D-Series is a high performance small form factor switch with a quiet, temperature tolerant
design that is ideal for conference rooms, classrooms, or warm locations with limited ventilation.  The G-
Series switch combines the size and cost-effectiveness of a stackable switch with the modularity of a
chassis-based switch, and is ideal for dynamic switching/routing environments requiring high density
Gigabit Ethernet ports.  The Enterasys I-Series is custom designed to support the demanding requirements
of an industrial setting, such as a factory floor or oil refinery, with tolerance for extreme temperatures and
the ability to function in harsh working environments.

Hipath Wireless Solutions’

HiPath Wireless solutions include a wide variety of access points, controllers, management capabilities,
security, and planning software, as well as a unique open platform for application integration. 
Recognized for offering a complete 802.11n solution without loss of coverage or functionality using
existing 802.3af PoE (Power over Ethernet) infrastructures, HiPath Wireless is the most energy efficient
and cost effective WLAN solution on the market today. 
Advanced Security Application
The Enterasys Intrusion Prevention System (IPS) and Enterasys Security Information and Event
Management (SIEM) solutions deliver a proactive and responsive security posture for any network from
any vendor. Enterasys Network Access Control (NAC) provides network visibility and granular control
ensuring that only the right users are accessing the right information from the right place at the right time.
Whether or not you have invested in Enterasys switching, routing, and wireless infrastructure, Enterasys
security solutions provide comprehensive protection, address regulatory compliance, enable greater IT
efficiency and reduce costs

12
Comparison in the products offered by CISCO and Siemens-

Product: IP-PBX:
Product Description: An IP (Internet Protocol) PBX (Private branch exchange) is a business telephone
system designed to deliver voice or video over a data network and interoperate with the normal Public
Switched Telephone Network (PSTN). Because a major part of IP PBX functionality is provided in
software, it is relatively inexpensive and easy to add additional functionality, such as conferencing, XML-
RPC control of live calls, Interactive voice response (IVR), TTS/ASR (text to speech/automatic speech
recognition), Public switched telephone network (PSTN) interconnection ability supporting both analogue
and digital circuits, Voice over IP protocols including SIP, Inter-Asterisk eXchange, H.323, Jingle
(extension of XMPP protocol introduced by Google Talk) and others.

Product features Cisco Siemens

Name
Version
Capacity
Call manager/Call controller
Additions
Protocols used
Gateways and gatekeeper
Per-cent of call completion
Call load includes voice
prompts
Call load include DTMF tones
Other validated high
availability features
Cisco IP Communication
Systems
Version 4.1(2)
30,000 IP hard or softphones
with 5+ server cluster
Running on Win 2000, Advanced
Server on custom HP/Compaq
servers
Mant swithches and routers can
be added to it for PSTN trunking,
IP station control
H.323 which provides connection
of 100 clusters but most features
do not extend across clusters.
Intergral gateway for H.323 but a
proxy server is required for SIP
phone support
99.99+
No
No
 Remote back up call
controller
 Dual NICS in call
controller
 Redundant controller in
gateways
HiPath 4000
Version 2.0
12,000 a mix of IP hard and
softphones
Running on UNIX or the process
card chosen by the vendor can be
modified
Gateways and mutislot chasis are
used for PSTN trunking and IP
station control
Propriety CorNet Protocol which
provides 100% transparency
across distributed system.
H.323 gateway and gatekeeper
are integral
99.7+
No
No
 Remote back up call
controller
 IP line card failover
 Redundant chassis power
supply

13
Siemens advanced features are much more down to earth, telephony oriented. Its wideband G.722 based
which is complemented for its high quality voice ; the modularity on its add on sidecars expansion units
for adding line appearances , soft keys and buttons to its IP phones. The only phone model that supports
TDM operations as a digital phone with a capacity to switch over to a full IP phone.

Where as Cisco products are video conferencing offerings, which interface through Cisco IP hard phones
and works just like setting up an audio phone call , even for multiparty video conferencing. With the help
of Cisco’s mobility application wherein calls can ring simultaneously at office or home or the cellular and
the user can readily transfer and pick up the call between these sites.

14
3.0 PRICING:
In the current competitive world pricing holds a significant position in contributing
towards competitive advantage of a company. Particularly in the telecommunication products
business, the pricing models to be adopted are given greater thoughts.

In this study, the two companies that are considered viz- SIEMENS and CISCO follow
completely different pricing models (Usage-based pricing model and licensing pricing model
respectively) which aids in achieving their mission and also gain competitive advantage over
other competitors.

LICENSING PRICING MODEL OF CISCO:

With the introduction of the Cisco Unified Communications family of products, the
device licensing approach for Cisco Unified Communications Manager (formerly called Cisco
Unified CallManager) Version 5.0 and later versions was adjusted to remain current with the
trends and demands of the marketplace. Business communications systems have evolved to meet
a broad set of service needs such as voice, video, and Web collaboration. Similarly, the call
processing function that is the mainstay within that complex communications environment has
been transformed over the years. Most of the intelligence for call processing now lies in the
software component of a call-control solution. Research and development, entrepreneurial
endeavor, and innovation are also shifting to the software side. With the creative energies
expended on the software, the approach to pricing has logically evolved toward device licensing.
Device licensing is not a new concept for Cisco, and with the release of Cisco Unified
Communications Manager 5.0, the existing licensing program has been updated to keep pace
with the changing times. Device licenses for Cisco Unified Communications Manager remain
separate from the price of the phone, but the price of the device license component has increased
starting with Cisco Unified Communications Manager Version 5.0. The price increase for
licenses has been offset by an equivalent decrease in the price for endpoints (Cisco Unified IP
Phones). As a result, the total amount that a customer pays for a combination of device license
and corresponding IP phone remains the same as in the previous pricing model for Cisco Unified
Communications Manager.

15
Industry fit:
Private-branch-exchange (PBX) vendors have traditionally set high margins on their
phones, even though the devices were little more than dumb terminals connected to the PBX. In
the new world of unified communications, phones and a multitude of other devices act as clients
that, when combined with sound call processing, form an integrated solution to meet the
evolving needs of an organization. With features such as Session Initiation Protocol (SIP),
companies are free to use an array of intelligent devices on the network to meet the varied needs
of their workforces. The value of a communications network now lies in productivity features
such as presence, Web collaboration, video, and location provided by intelligent call processing.
Industry vendors will come to rely on superior call processing to differentiate their solutions
from those of competitors, while allowing integration with third-party devices. Industry leaders
will be able to continue to invest in innovation only if the pricing model of network components
accurately represents the relative value of those components within a customer environment. As
productivity features continue to be enhanced in call-processing applications, the industry will
follow with licensing fees commensurate with those features and innovations.

A recent Sage Research study demonstrated that increasing numbers of knowledge

workers own multiple communications devices—an average of as many as 6.4 per user—and
these devices may include a desk phone, a dual-mode cell phone, and a softphone. Cisco
continues to update its licensing policies to respond to market needs. Just as the current licensing
policy reflects an intention to represent the innovation and value of call processing in the
customer environment, Cisco pricing policies will continue to evolve to meet the growing need
for device independence and user flexibility.

Cisco charges for the device and for the associated value that Cisco call control
represents. Device licenses for Cisco phones and for phones from third-party vendors are
perpetual and independent. Cisco devices support a robust feature set, and their support of both
SIP and Skinny Client Control Protocol (SCCP) makes them compelling tools in an enterprise’s
productivity efforts (Figure 1). Because of their enhanced feature set, over time users can expect
Cisco devices to provide better return on investment (ROI) than third-party SIP devices with
limited feature sets. Third-party devices with limited feature sets may nevertheless offer suitable
options for certain users within a network to complement high-end devices for other users.

16
CLOUD COMPUTING AND USAGE-BASED PRICING MODEL OF SIEMENS:
As IT budgets come under increasing cost pressure, the interest in on-demand scalability /
flexibility, usage-based pricing models and no / low capital investment is gaining increasing
momentum. Whilst from a commercial view point the “as a Service” approach is not that new, its
alignment to the emerging virtualization technologies is creating a whole new delivery paradigm
that has been loosely termed “Cloud Computing”.

But SEIMENS’ Usage-based pricing model has its own ill effects that can affect the
profitability of the company. Usage-based pricing will inevitably discourage use.
Usage-based pricing could harm very important research areas with smaller research
communities - for example, research on endangered species, rare diseases, or essential but
esoteric basic research which is a part of the clientele base of SIEMENS.

Another reason to think carefully about usage-based pricing: of course, we want to pay
less for what we use less. However, do we want to pay more for what we use more? This is a
very likely consequence of usage-based pricing.

17
4.0 PLACE

Location is the process of determining the geographical site of a firms operation .Organizations
weigh a number of factors while assessing the desirability of a particular site which are :

 Proximity to customers
 Proximity to suppliers
 Labor costs
 Transportation costs

Place refers to the means by which your customers acquire your product and includes:

 Channel
 Location
 Transport
 Coverage
 Assortment
 Inventory

Channels
Channels are set of interdependent organizations involved in the process of making a product
or a service available .As part of marketing strategy companies can select

 Direct channels
 Indirect channels

SEIMENS INDIA uses only indirect channels for its sales.

Manufacturer Company warehouse Distributor

Wholesaler Retailer Customer.

18
The list of sales offices in India for Siemens is:

Ahmedabad
Siemens Ltd. Ahmedabad 3rd Floor, Prerna Arbour, Off C G Road, Girish Cold Drink Cross Road,
Navarangpura, Ahmedabad 380009.
Bengaluru
Siemens Ltd. Bangalore 3rd Floor, Jyoti Mahal, No. 49, St. Marks Road, Bangalore 560 001. +91
80 22042000
Siemens Ltd.(Previously SITS) Bangalore Devanhalli Road, Off Old Madras Road, Virgonagar,
Bangalore 560 049.
Chandigarh
Siemens Ltd. Chandigarh SCO 189/191, Sector – 17C, Sector 34A, Guru Nanak Complex,
Chandigarh 160 042
Gurgaon
Siemens Ltd. Gurgaon Software Development & Engineering Centre, Plot 6A, Sector 18,
Maruti Industrial Area, HUDA, Gurgaon
Hyderabad
Siemens Ltd. Hyderabad 5-9-19, 4th & 5th Floor, Laxmi Narasinh Estate, Hyderabad 500 004.

CISCO INDIA has direct as well as indirect channels. Some of its sales offices are in:

BANGALORE

2nd floor
Brigade South Parade 10, M.G. Road Bangalore - 560 001 Karnataka India

CHENNAI
Unit No 511, 5th floor Raheja Tower 177, Annai Salai (Mount Road) Chennai Tamil Nadu
India

KOLKATA

Apeejay Business Centre 8th Floor, Block A Apeejay House 15, Park Street Kolkata - 700016
West Bengal

19
 5.0 Cisco Promotions/Programs

Collaboration Promotions

Accelerate to Collaborate (A2C) Promotional Offers

A2C is designed to migrate customer from competitive legacy solutions to Cisco Unified
Communications (UC) and Catalyst Switching solutions. It includes attractive customer trade-in
credits, compelling services offers, flexible financing offers, sales enablement tools and
incentives, and robust marketing demand generation.

UC Migration Momentum

The Cisco Unified Communications Migration Momentum promotion offers significant rebates
and customer incentives to qualifying UC Specialized partners that migrate Avaya, Alcatel,
Ericsson/Aastra, Mitel, NEC, LG, Nortel and Siemens customer to Cisco UC solutions. Eligible
trade-in categories include PBXs, key systems and phones. The UC Migration Momentum
promotion can also be combined with Trade-in Accelerator Program (TAP) rebates.

Migrate Now

The Voice Technology Group is pleased to announce a new promotion to help migrate existing
customer to Cisco Unified Workspace Licensing (CUWL). This offer is targeted at existing UC
customer who want to accelerate their decision-making time, enhance productivity and increase
mobility and collaboration -- all at a significant discount (50% off list price)

3 and 3 Upgrade Offer

The '3 and 3 Upgrade' offer is designed to motivate the UC customer installed base to migrate
from earlier releases to Cisco Unified Communications Manager 7.1(5) or UC 8.0. With the '3
and 3 Upgrade' bundled offer, customer can purchase a la carte Cisco Unified Communications
Manager 7.1(5) and Unified Communications 8.0 product upgrades for $3 per user, per
application* when combined with a three-year minimum** Cisco Unified Communications
Software Subscription at standard price.

Cisco Unified Contact Center Express -- Bundled Free with Cisco Unified Communications
Manager for New Customers

This promotion bundles new orders of Cisco Unified Communications Manager, Cisco Unified
Communications Manager Business Edition and Cisco Unified Communications Manager

20
Express with up to five seats of Cisco Unified Contact Center Express Enhanced system at no
additional charge.

SMB Promotions

Cisco Small Business Fast Track Accelerator Promotion

It can help customer sell even more by offering promotional pricing on select Cisco solutions for
small business. Plus, with Cisco, customer have a single source for the industry's widest range of
reliable, compatible, and predictable networking products and services.

Cisco "Switch Up, Cash In"

Partners now have even more reason to encourage their customer to buy Cisco Small Business
networking products. Customers can now receive $100 cash back when they trade in their
existing switch and purchase a Cisco small business switch. Cisco Small Business switches
enable partners to deliver their customer a better business network. These affordable switches
were designed for small businesses and offer reliable and high performance connectivity that
enable a more efficient business.

SMB Fast Track Discount

It provides Cisco partners with pricing advantage on industry-leading networking products for
SMB applications from switching, routing, wireless, security and unified communications
technologies. Registered partners can participate.

Cisco SMB Promotions Guide

There are numerous programs and promotions to help customer gain business and reap rewards
for your sales of Cisco Small Business products.

Borderless Network Promotions

The qualifying public and private K-12 and higher-education institutions in the U.S. can
experience the power of mobility from Cisco at a fraction of the cost.

21
Virtualization Promotions

Data Center Advantage Program

Earn more on Cisco Data Center solutions with Cisco DC Advantage, an incentive program to
increase your profitability when customers sell more Cisco Data Center products.

US Channel Opportunity Incentive Program

The Opportunity Incentive Program (OIP) rewards channel partners who actively identify,
develop and win new business opportunities in targeted market segments. This program
incorporates deal registration that is designed to protect the partner's presales investment and
enable them to focus on value delivery to win the opportunity. Cisco Systems has simplified
eligibility requirements for existing and new Cisco OIP offers. These offers may not be used in
combination with any other promotions or programs from Cisco Systems with the exception that
VIP rebates may apply if eligible. Registration and approval through OIP is required.

Services Promotions Accelerate to Collaborate Program

Three years worth of Cisco Technical Services for the price of two years and free Migration
Discovery Sessions to help customer’s migration.

Hardware

Educational Institutions Can Save Money on Cisco 802.11n Wireless and Cisco Catalyst
Switches
qualifying educational institutions can now experience the power of mobility and intelligent
switching solutions from Cisco at a fraction of the cost.

Cisco Catalyst Switches Offers

Combine the Cisco 802.11n wireless promotions with Cisco Catalyst switches for a complete
wired and wireless solution. Cisco's market-leading switches offer high availability, integrated
security, strong support for converged applications, and significant long-term investment
protection.

Attractive discounts and price reductions are available on the following Cisco Catalyst switches:

 Cisco Catalyst 2975 Series Switches

 Cisco Catalyst 3560G and 3750G Series Switches
 Cisco Catalyst 4500 E-Series Switches

22
SMB Fast Track Discount

Provides Cisco partners with pricing advantage on industry-leading networking products for
SMB applications from switching, routing, wireless, security and unified communications
technologies. Registered partners can participate.

A customer can receive a 39% and 44% discount on eligible products:

 Switching: 2940, 2960, CE500 and CE520

 Routing: 800, 1800 and 2800 series
 Security: ASA5505 and ASA5510
 Wireless: WLAN Controller 526/2106/4400
 Access point: 521/1100/1200/1300
 Unified communications: UC500, Unified IP Phones 7900, Monitor Director and Monitor
Manager

Technology Migration Program

Cisco registered partners can utilize the Technology Migration Program (TMP) and Competitive
Equipment Exchange to enable customer to trade in their existing Cisco and competitive
networking products in exchange for trade-in credits towards the purchase of new Cisco
products.

Certified/Specialized NFR Program

The Certified/Specialized NFR Program rewards resellers that have Cisco Certifications and
Specializations with generous discounts on products used for their labs, demos and sales office
infrastructure. This program also applies to Cisco Technology Developer Partners, AVVID
Development Partners, Network Admission Control (NAC) Partners, Service Provider Solutions
Ecosystem Partners, STI and ATP Partners.

An approximate 70% discount is applicable to all Cisco products with the following limits:

 Gold: $400K/year at list price

 Silver: $200K/year at list price
 Premier: $100K/year at list price
 Select: $100K/year at list price
 Specialized (no certification) Cisco Technology Developer Partners, AVVID or NAC
Partner Program, SP Eco, STI and ATP Program: $75K/year at list price
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Registered Partner NFR Program

The Registered Partner NFR Program rewards Cisco Registered Partners with an approximate
50% discount on Cisco products (hardware and software) used for their labs, demos and sales
office infrastructure. There is a $75K list price per year limit on these products, measured on a
rolling twelve-month basis. For more information, contact your Cisco CAM.

Hosted IP Communications

Hosted IP Communications is a program that gives SMB-focused Cisco resellers the tools they
need to be successful implementing a hosted voice solution in the SMB space. This program
allows for product discounts when Cisco IP Phones are purchased in conjunction with a bundle
consisting of a Cisco Router and a Cisco Switch. Additional products may qualify for the
extended discount. (See product eligibility for a list of all approved products). Additionally, this
program provides product access to Cisco IP Phones for qualified resellers (see partner
eligibility). These discounts and product access to Cisco IP Phones are only available when
purchased with approved services from qualified Cisco Powered Network (CPN) hosted voice
service providers. For more information, contact your Cisco CAM.

U.S. Channel Opportunity Incentive Program

The Opportunity Incentive Program (OIP) rewards channel partners who actively identify,
develop and win new business opportunities in targeted market segments. This program
incorporates deal registration that is designed to protect the partner's presales investment and
enable them to focus on value delivery to win the opportunity. Cisco Systems has simplified
eligibility requirements for existing and new Cisco OIP offers. These offers may not be used in
combination with any other promotions or programs from Cisco Systems with the exception that
VIP rebates may apply if eligible. Registration and approval through OIP is required.

 Generate incremental Cisco business

 Boost channel partner profitability
 Support the channel partner value model
 Help increase share in growth markets

Program benefits include:

 Provides a financial advantage for partners who bring in new business opportunities

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  Improves partner profitability
 Protects the partner's presales investments and value delivered to customer
 Facilitates value engagement by identifying the partner who is first to develop the
opportunity, ensuring early engagement between the partner and Cisco

Partner Rewards Program

Earn points for qualified sales of Cisco products and redeem them for a broad array of rewards --
everything from electronics, sports gear, and home and garden gadgets to dream vacations and
sports packages. You can also exchange points for dollars that can be added to a prepaid debit
card. The choice is yours.

 Companies are now able to earn points as well

 Claims process is fast, easy and entirely web-based
 File claims in an easy, one-step process using just your distributor invoice number
 Begin submitting claims and rewarding yourself now

Services

Cisco Services Accelerate Program

This program is a training and incentive program for eligible Cisco channel partners. It's
designed to help customer and your teams sell Cisco services more effectively and grow your
business.

 Offers easy-to-use, self-paced online training at no cost

 Take quizzes for points toward a chance of winning a gift card
 Win gift cards or earn additional points by taking Accelerate Program bonus challenges

Cisco Certified Refurbished Equipment

Cisco Certified Refurbished Equipment is a price competitive and trusted alternative when
buying new Cisco equipment is not an options. This is ideal for customer faced with tight or
limited capital spending budgets.

Pay for Performance Service Incentive Program

The Pay for Performance Service Incentive Program offers qualifying Cisco 2-Tier Partners cash
rebates for meeting service contract attach and renewal rate thresholds. The program helps
customer improve profitability, retain and satisfy customer, and manage and grow your Cisco
services business. You can access metrics on attach rates and renewal rates by using

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Performance Metrics Central, an online dashboard that gives customer a centralized view of your
service metrics.

Services NFR Program

Rewards resellers that have purchased products used for their labs, demos and sales office
infrastructure with a generous discount on the corresponding services. Get a 70% discount on all
Cisco services purchased for product purchased under the NFR program. A corresponding NFR
product deviation approval must be provided. All Cisco Smartnet products are eligible.

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6.0 INDUSTRY BUYING BEHAVIOR-

27
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7.0 COMPETITIVE ADVANTAGE-
Suppliers benefit by being better able to plan their own manufacturing schedules. Suppliers also
are able to direct ship to customers, reducing travel of their wares, and hence reducing the chance
for damage or loss. Suppliers also have more contact with their own customers, which can give
the organization more defined and relevant input.

Buyers benefit by increased customer relations. They can track their orders online, get quicker
answers to problems, check availability of stock, and get value-added merchandise.

Porter's Five Forces

The model of pure competition implies that risk-adjusted rates of return should be
constant across firms and industries. However, numerous economic studies have
affirmed that different industries can sustain different levels of profitability; part of this
difference is explained by industry structure.

Michael Porter provided a framework that models an industry as being influenced by

five forces. The strategic business manager seeking to develop an edge over rival firms
can use this model to better understand the industry context in which the firm operates.

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Porter’s Five Forces are supplier power, threat of substitutes, buyer power, the
degree of rivalry amongst competitors, and barriers to entry.

By creating the Manufacturing Connection Online, Cisco has been able to create a
successful link with all of its suppliers, controlling differing inputs, ordering
volumes, and supplier concentrations. With Cisco Connection Online, Cisco has
successfully created a supplier gateway. The benefits include ease-of-use, shorter
delivery times, and immediate access to order status. By improving their delivery
system whilst reducing the price to the consumer and shortening delivery time,
Cisco suppliers have raised the barriers to entry, ensuring brand identity, access to
distribution, and providing absolute cost advantages. Similarly, the threat of
substitution is reduced, as customers are now disinclined to substitute, particularly
in face of the increased customer service. Finally, being a leader in the industry
and the value-added CRM services will reduce the influence of rivals.

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REFERENCES-

 WSIS Geneva Plan of Action, 2003, at:

http://www.itu.int/wsis/docs/geneva/official/poa.html#c8.
 WSIS Geneva Plan of Action, 2003, at:
http://www.itu.int/wsis/docs/geneva/official/poa.html#c3.
 http://www.businessweek.com/technology/content/mar2007/tc20070307_534338.htm.
 http://www.hulu.com.
 http://news.bbc.co.uk/2/hi/business/6411017.stm.
 http://www.comscore.com/Press_Events/Press_Releases/2009/10/36_Million_German_In
ternet_Users
 http://online.wsj.com/article/SB123111603391052641.html.

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