Foundation Advantage an account manager’s perspective…

1. Foundation Advantagean account manager’s perspective… Mark Davies 4th November 2005

2. Foundation Advantage Summary • Aligned to CTMP • Generates bonus for the team per product traded in • 40% to the AM • 40% to the SE pool • 10% split between RSM and SEM • 10% split between the channel team • Based on product traded to

3. So what’s it worth per box…..

4. Worth putting in some work…… What I have to work with ... • Negotiating global deal that includes refresh • Prospective partners are BT or MCI …just needed some minor changes…. • Changed DSA to be CTMP based rather than “packaged trade-in” • This ensures product is returned to Cisco • Slightly more overhead needed from me! • Introduced TAP to motivate the partner • 15% of CTMP credit goes to partner as back end rebate • Requested list of product to trade in from partners…

5. Routers 34 x Cisco 1600 53 x Cisco 1700 121 x Cisco 2500 2,612 x Cisco 2600 250 x Cisco 3600 192 x Cisco 7200 Switches 2,520 x Cat 1900 325 x Cat 2900 1,745 x Cat 3500 370 x Cat 4000 20 x Cat 5000 439 x Cat 5500 21 x Cat 6000 378 x Cat 6500 The trade-in list….

6. Show me the money….

7. Split by individual • AM $50,000.00 capped • SE $23,674.29 per SE (assuming straight split between 14 engineers) • RSM $41,430.00 • SEM $41,430.00 • Channel $82,860.00 (capped at $50k per person)

8. Money in the bank? • Not even close….. a few hurdles… • Caveats • Need to get the “trade to” orders in Q2 • Would need to negotiate a Foundation Advantage split with the destination country (expecting 33% to UK) • Need deals desk to approve use of CTMP and the extended return period • Cisco Capital • To be done • To be done

9. To add some realism…. Getting 30% of orders and negotiating a 33% split…. • AM $32.8k • SE $2.5k each • RSM $4.5K • SEM $4.5k • Channel $9.0k

10. Q and A