SprintCisco Strategic Alliance

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Sprint/Cisco Strategic Alliance
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Cisco Alliance
Alliance Summary

• The strategic relationship between Sprint and
  Cisco (announced in Dec. 2001) builds on a
  long-standing relationship between these
  telecommunications and networking industry
  leaders to forge strong sales, joint marketing
  and technology development ties well into the
  future.
• Sprint and Cisco have teamed up in sales and
  marketing efforts to deliver a wide range of
  equipment and services to customers. The
  companies are focusing on jointly developing and
  selling IP-based and broadband solutions in the
  areas of Managed VPN Security, IP Communications,
  and Mobility as well as creating targeted
  solutions for specific vertical markets.
• Key differentiators of this relationship are the
  Market Planning and Execution Board (MPEB) and
  the Product and Technology Board (PTB), which are
  comprised of Sprint and Cisco subject matter
  experts who create differentiated solutions and
  manage and develop technology initiatives.

• Alliance Mission Deliver High Margin Data
  Services Based on IP and Broadband Technologies
• Create Profitable Market Disruption
• Accelerate Time to Market
• Drive Nationwide Market Penetration

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Value Proposition of the Alliance

• Value proposition to Cisco
• Credibility in the traditional Service Provider
  marketplace through collaboration with Sprint.
• Sprint commitment to invest in Cisco technologies
  focusing on IP and Broadband networks (assuming
  they are competitive)
• Sprint and Cisco collaboration in longer term
  research and development through the creation of
  a Technology Advisory Board helping Cisco to
  become stronger in the Service Provider Space
• Unique process for RFIs and RFPs
• Sprint commitment to lead with Cisco CPE when
  connected to a Cisco Powered Network (CPN)
• Key Measures Infrastructure Spend

• Value proposition to Sprint
• Collaborate with the IP leader in the enterprise
  and SMB space
• Dedicated Cisco resources for development,
  customer support, field sales and engineering,
  marketing.
• Cisco funding for marketing programs, sales
  incentives.
• Access to Ciscos sales channels including 2400
  sales associates for Cisco Sales reps to
  sell/partner on Sprint solutions
• SP only Programs (Uplift, IBSG, Market Funds)
• Increased Wallet Share
• Key Measures TCV and Billed Revenue

Takeaway Infrastructure Spend justifies Cisco
incremental dedicated headcount, funding for
marketing programs and sales incentives.
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Highlights of Definitive Alliance Agreement

• Sprint has committed all future broadband and IP
  capital spend to Cisco if
• - solution is competitively priced
• - technology meets customer requirements
• - solution is delivered timely
• Sprint agrees to give early insight into
  Sprints planned technologies and solutions for
  IP and broadband networks and early interaction,
  gap analysis, executive review for RFPs prior to
  final decisions.
• Sprint will provide Cisco with unique and
  detailed access to forecasted capital
  expenditures for IP and broadband networks and
  unique access to engineering and network planning
  organizations in a collaborative environment.
• Cisco agrees to give sales uplifts to Cisco reps
  for selling through Sprint. Must qualify under
  program guidelines.
• Cisco will provide priority access to Market
  Development Funds. Funds to be used for
  awareness, training and sales.
• Cisco will provide priority access to its IBSG
  group consultants and research data.

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Cisco A Key Enabler of Sprints Integration
Strategy
Sprint leadership in network performance and
managed services
Cisco leadership in IP and advanced technologies
Unique Value Proposition
We are the companies best equipped to execute on
the converged vision
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Cisco and Sprint Shared Priorities and Objective
Advanced Technology
Verticals
Sprint
Cisco
Research
Business Continuity Managed Security Mobility
/ Home Networking Security IP Telephony
Government Healthcare Finance Services Manufacturi
ng Retail Education
Managed Services Adoption VoWLAN /
Dual-Mode Wireline / Wireless Integration
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Cisco asks Sprint
Sprint asks Cisco

• Why partner with Sprint?
• Sprints and Ciscos common view of voice, data
  and video convergence over a single network.
• What impresses you most about Sprints customer
  commitment?
• An action-oriented, customer-focused leadership
  that customers clearly value.
• What is the value of Sprints Transformation to
  our partnership?
• Sprints Transformation is customer-driven and
  dramatic in its speed of decision-making.

Why partner with Cisco? The unique value of
Sprints wireline and wireless networks and
Ciscos end-to-end architecture. What impresses
you most about Ciscos commitment to Carrier
Class Solutions? The high level of collaboration,
executive commitment and speed to market. What
role will Cisco play in the core of your
network? We plan to be the only Tier 1 to
exclusively put Ciscos equipment in the core and
edge of our public and private networks.
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• Why Cisco Sprint Perspective?
• Industry Leader in IP technologies
• Rated the most powerful company in the network
  industry (Network World, 12/03)
• Sprint can leverage Cisco expertise/resources/busi
  ness relationships (sales force of 2,500)
• Gives Sprint a competitive, sustainable advantage
  and drives incremental revenue (
  Ex.-GoIP,MPLS,SMB)
• Both companies are aligned around similar revenue
  driving priorities ( IP, Mobility, MNS, Security)
• Why Sprint Cisco Perspective?
• Sprint Commitment to invest in Cisco IP
  Technologies
• Sprint gives Cisco credibility in the service
  provider community by utilizing Cisco in the
  network
• Collaboration in longer term research and
  development
• Early insight into future network spending plans
• Sprint commitment to lead with Cisco when
  connected to a CPN network (see positioning)
• Creation of joint Sprint/Cisco solutions that
  align with Cisco battle flags
• Strong Governance commitment
• Value Proposition
• Program specific- By creating programs with a
  clear benefit for a specific set of prospective
  customers, Sprint and Cisco can quickly drive
  revenue with a high close ratio ( Ex. -GoIP,
  MPLS)
• Because of the size of the Cisco sales
  force(2,500), the uplift compensation and the
  Cisco marketing and business development
  resources available to Sprint, the timeline from
  concept to go to market is highly accelerated.