`ESTTA991477
`07/30/2019
`
`ESTTA Tracking number:
`
`Filing date:
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Proceeding
`
`91237941
`
`Party
`
`Correspondence
`Address
`
`Defendant
`Molly Wendell
`
`JEFFREY C WHITLEY
`WHITLEY LEGAL GROUP PC
`17500 NORTH PERIMETER DR, SUITE 130
`SCOTTSDALE, AZ 85255
`UNITED STATES
`mollymessage@yahoo.com, Jeff@whitleylegalgroup.com
`602-300-2076
`
`Submission
`
`Filer's Name
`
`Filer's email
`
`Signature
`
`Date
`
`Attachments
`
`Defendant's Notice of Reliance
`
`Jeffrey C. Whitley
`
`jeff@whitleylegalgroup.com
`
`/Jeffrey C. Whitley/
`
`07/30/2019
`
`Wendell Ninth Notice of Reliance.pdf(287338 bytes )
`Exhibit D for Ninth Notice of Reliance D39-D58_Part1.pdf(5201009 bytes )
`Exhibit D for Ninth Notice of Reliance D39-D58_Part2.pdf(5110954 bytes )
`Exhibit D for Ninth Notice of Reliance D39-D58_Part3.pdf(4185138 bytes )
`
`
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`) Opposition No.: 91237941
`)
`
`)
`
`)
`Mark: YOUR WORKFORCE IS YOUR
`)
`SALESFORCE
`)
`
`)
`Serial No. 87293037
`)
`
`)
`)
`)
`)
`)
`
`
`
`
`
`
`
`
`
`
`
`
`SALESFORCE.COM, INC.;
`
`Opposer,
`
`
`v.
`
`
`WENDELL, MOLLY;
`
`
`
`
`Applicant.
`
`__________________________________
`
`
`
`
`
`APPLICANT MOLLY WENDELL’S NINTH NOTICE OF RELIANCE
`
`Applicant Molly Wendell (“Wendell”), by her undersigned attorneys and pursuant to 37
`
`C.F.R § 2.122(e), hereby gives notice that she offers and intends to rely upon the following
`
`publicly available printed publications and materials printed from the Internet. These publicly
`
`available materials show third-party usage of the word "salesforce" as a single word. This
`
`usage is relevant to show: 1) the weakness of Opposer's marks; 2) the descriptiveness of the
`
`word "salesforce" as applied to a group of people with the function of selling goods and
`
`services; 3) third-party uses of "salesforce" in a descriptive manner; 4) the lack of fame of
`
`Applicant's mark; 5) the dominant portion of Applicant's and Opposer's marks; and 6) that
`
`"salesforce" portion of Applicant's mark is so descriptive and commonly used that the public
`
`will look to other elements of Applicant's mark to distinguish the source of Applicant's goods or
`
`services. Unless otherwise indicated, the documents are being submitted in their entirety
`
`because the relevant information is contained throughout the document or the document is
`
`brief.
`
`
`
`1
`
`
`
`
`
`1.
`
`True and correct copy of a printout from the Internet of a 2017 Annual Report for
`
`Cisco Systems, Inc. dated October 23, 2017, available at
`
`https://www.cisco.com/c/dam/en_us/about/annual-report/2017-annual-report-full.PDF, accessed
`
`on January 3, 2019, marked as Exhibit D-39, p. WEND2647;
`
`2.
`
`True and correct copy of a printout from the Internet of a Cisco Systems, Inc.
`
`2015 Annual Report and Letter to Shareholders, dated September 8, 2015, available at
`
`https://www.cisco.com/c/dam/assets/about/ar/pdf/2015-cisco-annual-report.pdf, accessed on
`
`January 3, 2019 marked as Exhibit D-40;
`
`3.
`
`True and correct copy of a printout from the Internet of a 10-K for Cisco Systems,
`
`Inc. dated September 8, 2015, available at
`
`https://www.cisco.com/c/dam/assets/about/ar/pdf/2015-cisco-annual-report.pdf, accessed on
`
`January 3, 2019 marked as Exhibit D-41, p. 9, 10, 82;
`
`4.
`
`True and correct copy of a printout from the Internet of a Cisco Systems, Inc.
`
`2014 Annual Report and Letter to Shareholders, dated September 9, 2014, available at
`
`https://www.cisco.com/c/dam/en_us/about/ac49/ac20/ac19/ar2014/2014-cisco-annual-report.pdf,
`
`accessed on January 3, 2019 marked as Exhibit D-42;
`
`5.
`
`True and correct copy of a printout from the Internet of a 10-K for Cisco Systems,
`
`Inc. dated September 9, 2014, available at
`
`https://www.cisco.com/c/dam/en_us/about/ac49/ac20/ac19/ar2014/2014-cisco-annual-report.pdf,
`
`accessed on January 3, 2019 marked as Exhibit D-43, p. 9, 82, WEND3089;
`
`6.
`
`True and correct copy of a printout from the Internet of a Cisco Systems, Inc.
`
`2013 Annual Report and Letter to Shareholders, dated September 10, 2013, available at
`
`https://www.cisco.com/c/dam/en_us/about/ac49/ac20/ac19/ar2013/docs/2013_Annual_Report.pd
`
`f, accessed on January 3, 2019 marked as Exhibit D-44;
`
`
`
`2
`
`
`
`7.
`
`True and correct copy of a printout from the Internet of a 10-K for Cisco Systems,
`
`Inc. dated September 10, 2013, available at
`
`https://www.cisco.com/c/dam/en_us/about/ac49/ac20/ac19/ar2013/docs/2013_Annual_Report.pd
`
`f, accessed on January 3, 2019 marked as Exhibit D-45, p. 9, 83, WEND3229;
`
`8.
`
`True and correct copy of a printout from the Internet of a webpage of Routledge
`
`Taylor & Francis Group presentation entitled "Sales Organization Structure and Salesforce
`
`Deployment," undated, available at
`
`https://online.columbiasouthern.edu/CSU_Content/Courses/Business/BBA/BBA3221/15G/UnitII
`
`_Chapter4Presentation.pdf, accessed on January 3, 2019 marked as Exhibit D-46, p.
`
`WEND3233, 3234, 3235, 3242, 3253, 3255, 3256-57, 3264, 3266, 3267, 3269-71;
`
`9.
`
`True and correct copy of a printout from the Internet showing a Business and
`
`Management Ink webpage article entitled "Optimal Salesforce Sizing and Compensation Cost,"
`
`dated January 17, 2018, accessed on October 23, 2018 and available at
`
`https://managementink.wordpress.com/2018/01/17/do-economic-profit-companies-walk-their-
`
`compensation-talk-2/, marked as Exhibit D-47, pp. 1-2, WEND3290-91;
`
`10.
`
`True and correct copy of James A. Dearden and Gary L. Lilien, "On Optimal
`
`Salesforce Compensation in the Presence of Production Learning Effects," Intern. J. of Research
`
`In Marketing 7 (1990), Elsevier Science Publishers B.V., marked as Exhibit D-48, pp. 179, 180,
`
`182, 184, 186, 187, 188;
`
`11.
`
`True and correct copy of a printout from the Internet of a Bain & Company article
`
`entitled “Is Complexity Killing Your Sales Model?", dated January 16, 2013, available at
`
`https://www.bain.com/insights/is-complexity-killing-your-sales-model/, accessed on October 23,
`
`2018, marked as Exhibit D-49, pp. 8, 9, 11, 12, 13, 15 (WEND3414-15, 3417-19, 3421);
`
`12.
`
`True and correct copy of a printout from the Internet of an IQVIA webpage article
`
`entitled "High-Value Customer Segmentation," dated May 22, 2018, available at
`
`
`
`3
`
`
`
`http://www.newenglandia.org/wp-content/uploads/2018/10/High-Value-Customer-
`
`Segmentation_IQVIA_Rosenman-and-Blahut.pdf, accessed on October 23, 2018, marked as
`
`Exhibit D-50, p. WEND3430;
`
`13.
`
`True and correct copy of a printout from the Internet of a presentation from GE's
`
`Global Partner Summit 2017: Competing to Win entitled "GE and Intel Partnership," 2017,
`
`available at https://www.ge.com/digital/sites/default/files/download_assets/Global-Partner-
`
`Summit-2017-Tech-Partnership-Model-Intel.pdf, accessed on October 23, 2018, marked as
`
`Exhibit D-51, pp. WEND3449, 3454, 3455;
`
`14.
`
`True and correct copy of a printout from the Internet showing a Medium webpage
`
`article entitled "Eastman Kodak," dated October 16, 2017, accessed on October 23, 2018 and
`
`available at https://medium.com/@svafier/eastman-kodak-e1968437a8e1, marked as Exhibit D-
`
`52, pp. 6, 8 (WEND3462, 3464);
`
`15.
`
`True and correct copy of a printout from the Internet showing the Direct Selling
`
`Association's "Be Connected Member Services" webpage, undated, accessed on October 23,
`
`2018, and marked as Exhibit D-53;
`
`16.
`
`True and correct copy of a printout from the Internet showing a Deloitte webpage
`
`article entitled "Sales Compensation Challenges and Points of View," 2017, available at
`
`https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/tax/deloitte-uk-sales-
`
`compensation-challenges-and-points-of-view.pdf, accessed on October 23, 2018, marked as
`
`Exhibit D-54, p. 1;
`
`17.
`
`True and correct copy of a printout from the Internet showing a Miller Heiman
`
`Group / CSO Insights article entitled "2018 Sales Talent Study," dated 2018, available at
`
`https://www.csoinsights.com/wp-content/uploads/sites/5/2018/09/2018-Sales-Talent-Study-
`
`1.pdf, accessed on October 23, 2018, marked as Exhibit D-55, pp. 3, 6, 7, 14, 15, 16, 17, 19;
`
`
`
`4
`
`
`
`18.
`
`True and correct copy of a printout from the Internet showing a Fox Business
`
`webpage entitled "Why Shares of Tupperware Brands Corporation Surged," dated April 25,
`
`2017, accessed on October 23, 2018, and available at
`
`https://www.foxbusiness.com/markets/why-shares-of-tupperware-brands-corporation-surged,
`
`marked as Exhibit D-56, p. 1 (WEND3553);
`
`19.
`
`True and correct copy of a printout from the Internet showing a Lean Lessons
`
`webpage article entitled "The Story of Toyota – How Lean Started," undated, accessed on
`
`January 8, 2019 and available at http://leanlessons.org/the-story-of-toyota/ marked as Exhibit D-
`
`57, p. 6 (WEND3562);
`
`20.
`
`True and correct copy of a printout from the Internet showing a Solving the Value
`
`Equation webpage article entitled "Beyond Payroll Platform Market for SMBs," dated September
`
`22, 2015, accessed on October 23, 2018 and available at
`
`https://thevalueequation.typepad.com/the_value_equation/page/4/, marked as Exhibit D-58, pp.
`
`2, 5 (WEND3564, 3567);
`
`21.
`
`True and correct copy of a printout from the Internet showing a Bain & Company
`
`article entitled “Selling the Cloud”, dated July 31, 2012, available at
`
`https://www.bain.com/insights/selling-the-cloud/, and accessed on January 3, 2019, marked as
`
`Exhibit D-59, pp. 1, 3, 5, 6, 7, 8, ;
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`5
`
`
`
`DATED this 30th day ofJuly, 2019.
`
`WHITLEY LEGAL GROUP, P.C.
`
` Whitley
`
`WHITLEY LEGAL GROUP, P.C.
`17500 North Perimeter Dr.
`
`Suite 130
`
`Scottsdale, AZ 85255
`
`jeffGthitleergalgroup.00m
`(480) 393—0404
`Attorneys for Applicam
`Molly Wendell
`
`
`
`CERTIFICATE OF SERVICE BY EMAIL
`
`I, Jeffrey C. Whitley, declare:
`
`I am employed in Maricopa County. I am over the age of 18 years and not a party to the
`
`within action. My business address is Whitley Legal Group, P.C., 17550 N. Perimeter Dr., Suite
`
`130, Scottsdale, AZ 85255.
`
`On this date, I served Applicant’s Ninth Notice of Reliance by forwarding the document(s)
`
`by electronic transmission on this date to the Internet email address listed below:
`
`John L. Slafsky
`
`Christine Au-Yeung
`
`trademarksfflwsgrcom
`
`I declare under penalty of perjury under the laws of the State of Arizona that the
`
`foregoing is true and correct. Executed at Scottsdale, Arizona on July30, 2019.
`
` Signature:
`
`Name:
`
`I
`
`‘fizéy C. Whitley
`
`
`
`TTAB Opposition No. 91237941
`salesforce.com, inc. v. Molly Wendell
`
`Applicant Molly Wendell
`EXHIBIT D-39
`
`(cid:3)
`
`
`
`2017
`Annual Report
`
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:23)(cid:25)
`
`
`
`About Cisco
`
`Our values
`
`Cisco designs and sells a broad range
`of technologies that have been powering
`the Internet since 1984. Across
`networking, security, collaboration, and
`the cloud, our evolving intent-based
`technologies are constantly learning and
`adapting to provide customers with a
`highly secure, intelligent platform for their
`digital business.
`
`Discover more at thenetwork.cisco.com.
`
`Our values reflect our aspirations, what we believe,
`and how we want to behave:
` (cid:121) Change the world
` (cid:121) Win together
` (cid:121) Make innovation happen
` (cid:121) Focus intensely on customers
` (cid:121) Respect and care for each other
` (cid:121) Always do the right thing
`
`Why
`Cisco
`
`Market
`leadership
`
`Salesforce of
`nearly 300,000
`(direct and partners)
`
`Customer
`loyalty
`
`Breadth of
`
`portfolio
`
`Innovation
`pipeline
`
`Global
`scale
`
`Capital
`return
`
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:23)(cid:26)
`
`
`
`Fiscal 2017
`summary report
`
`Forward-looking
`statements
`
`2 Letter to shareholders
`
`4 Financial highlights for fiscal 2017
`
`6 Our strategy
`
`9 Governance and responsibility
`
`16 Investor Relations
`
`This report contains projections and other
`forward-looking statements regarding future
`events or the future financial performance of Cisco,
`including future operating results. These projections
`and statements are only predictions. Actual events
`or results may differ materially from those in the
`projections or other forward-looking statements.
`See Cisco’s filings with the Securities and Exchange
`Commission (SEC), including its most recent filings on
`Forms 10-K and 10-Q, for a discussion of important
`risk factors that could cause actual events or results to
`differ materially from those in the projections or other
`forward-looking statements.
`
`Online report
`
`To see our interactive online report, visit our Annual
`Reports webpage. We welcome any feedback you
`might have.
`
`For more detailed information, please refer to our
`Annual Report on Form 10-K, our Proxy Statement for
`our 2017 Annual Meeting of Shareholders, and our
`2017 Corporate Social Responsibility (CSR) Report.
`
`2017
`Annual Report
`
`Cisco fiscal 2017 summary report 1
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:23)(cid:27)
`
`
`
`Letter to shareholders
`
`To our shareholders,
`
`Fiscal 2017 was a momentous year for Cisco,
`marked by our most significant product launch in
`a decade. We believe that our new networking
`capabilities not only have ushered in a new era of
`networking, but also represent the beginning of
`a cycle of innovation that we will see in the years
`ahead as we extend intent-based technology
`across our entire portfolio. This launch also
`stands as a key milestone in our commitment
`to transform our business and provide our
`customers with the technology they want, in the
`way they want to consume it.
`When I became CEO in 2015, I identified three main priorities
`for Cisco: to accelerate the pace of our innovation, increase
`the value of the network, and deliver the right consumption
`models for our customers. Over the past two years, we have
`been working hard toward fulfilling these goals, and we have
`made great progress over the course of the past year.
`
`Delivering what our customers need
`As billions of things connect to the Internet and as massive
`amounts of data continue to be distributed ever more widely,
`our customers are facing challenges around complexity
`and security. As customers evaluate how to manage these
`challenges, they are turning to Cisco to help them reduce
`their operating expenses and become more agile and, most
`importantly, more secure.
`
`Our commitment to solving our customers’ challenges is
`rooted in our vision to deliver the highly secure, intelligent
`platform for digital business. To do that, we are focused on
`reinventing networking, enabling a multicloud world, unlocking
`the power of data, enriching the employee and customer
`experience, and deploying security everywhere. In all of these
`things, the network is the common denominator.
`
`Security is foundational to all that we do
`Every customer knows that nothing is more important than
`security; it is a requirement of digitization. Cisco’s assets,
`architectural approach, and integrated threat defense—from
`the network to the endpoint to the cloud—provide what we
`believe to be the true end-to-end security approach that
`our customers want and need. Essential to all of that is the
`network, which has the ability to see a threat in one place and
`enforce remediation everywhere.
`
`One of the key features of our new intuitive network is
`Encrypted Traffic Analytics (ETA). This breakthrough
`innovation can detect malware in encrypted traffic without
`decrypting it, solving the conundrum of enhancing
`cybersecurity without eroding data protection and privacy.
`Our aim is to help our customers minimize the time to threat
`detection and couple that with a minimized time to response.
`
`Fundamentally reinvent networking
`Building on our solid foundation of more than 30 years of
`networking expertise, our innovation strategy, and the trust
`of our customers, we have begun to fundamentally rethink
`how the network is built and used. In June 2017 we launched
`a new intent-based networking platform: “The Network.
`Intuitive.” Built on the Cisco Digital Network Architecture
`(Cisco DNA), this platform is the culmination of years of
`research and development that included redesigning our
`operating system, building high-performance custom silicon,
`and harnessing the context within the network and the threat
`intelligence that we glean from blocking 20 billion threats
`every day. This new network is designed to constantly learn,
`adapt, automate, and protect, optimizing network operations
`and defending against today’s evolving cyberthreat
`landscape.
`
`Looking ahead, we intend to further accelerate our leadership
`in intent-based networking by combining our expertise in
`network infrastructure and the enhanced capabilities in
`application visibility and automation that we have gained
`through our analytics innovation as well as our acquisitions of
`AppDynamics and Viptela.
`
`Enabling a multicloud world
`Today, our customers are operating in a multicloud
`environment, navigating between private, public, and hybrid
`clouds; multiple software-as-a-service (SaaS) applications;
`and vendors building capabilities around new connections.
`This approach is complex and difficult to manage, particularly
`because customers want greater visibility and control over
`their ability to deploy policy and move workloads with a high
`level of security.
`
`Our strategy is to deliver solutions to simplify how customers
`work in a multicloud world to maximize business benefits. To
`do this, we are delivering infrastructure and cloud-based SaaS
`offerings and expanding our analytics solutions into the public
`cloud. Our intent-based networking approach will be critical to
`this process as well.
`
`2 Cisco fiscal 2017 summary report
`
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:23)(cid:28)
`
`
`
`Letter to shareholders
`
`We are also working closely with the major web-scale
`players, combining our expertise in the enterprise space with
`their technology and solutions to provide greater value to our
`customers.
`
`Unlocking the power of data
`With data proliferating at an unprecedented rate, it is becoming
`essential for companies to process that data at the time
`and place created. Cisco offers a thorough set of analytics
`capabilities that allow our customers to unlock the power of data
`and gain insights throughout their infrastructure.
`
`The combination of our Network Data Platform, which provides
`insights from the enterprise network; Cisco Tetration Analytics,
`which provides real-time data center analytics; AppDynamics,
`which allows companies to tie application visibility to business
`outcomes; Cisco Kinetic, a first-of-its-kind Internet of Things
`(IoT) operations platform launched this year; and Talos, our
`cyberthreat intelligence arm, forms what we believe to be the
`most comprehensive set of data analytics capabilities of any
`technology provider.
`
`Enriching the employee and customer
`experience
`Every customer is trying to enhance the employee
`experience, boost productivity, and enable teams to
`work more effectively together. Our Cisco WebEx, Cisco
`TelePresence, and Cisco Spark collaboration tools allow
`for closer connections between teams to drive innovation,
`research, and strategies across geographies. We are focused
`on helping our customers add value for their stakeholders
`by leveraging the power of collaboration technology. Our
`cloud-native application, Cisco Spark, not only connects
`people to other people, but also connects “things” to people,
`enabling machine-to-person communication.
`
`Evolving our business model
`As we build the highly secure, intelligent platform for digital
`business, we must continue to deliver customer value through
`simplicity, flexibility, and innovation. This requirement is essential
`to drive the uptake of SaaS and subscriptions, through which
`our customers are increasingly looking to purchase and
`consume our technology. Cisco DNA Center, the centralized
`management dashboard for our new intuitive network, and ETA
`are available only as subscriptions on our new Cisco Catalyst
`9000 Series Switches, helping us to deliver a subscription
`offering for our core networking infrastructure platforms.
`
`Our objectives are to continue to move to cloud-managed
`solutions across our entire networking portfolio and evolve to
`a more predictable business model over time.
`
`Reaching important milestones through
`the transition
`In fiscal 2017, we delivered solid profitability and strong
`operating cash flows despite a slight decline in revenue as
`we evolve our business model. Revenue for the year was
`$48.0 billion, with product revenue of $35.7 billion and
`service revenue of $12.3 billion.
`
`For fiscal 2017, 43% of our revenue came from software and
`services, and 30% of our revenue was from recurring offers.
`
`Deferred product revenue related to software and
`subscriptions grew by 50% in fiscal 2017 to $5.0 billion,
`doubling in the past 2 years. In the fourth quarter, for the first
`time, over $1 billion, or 11%, of our product revenue came
`from recurring offers. We believe that as we expand Cisco
`DNA Center further into our core infrastructure platforms,
`even more of our revenue will be recurring.
`
`We also remain disciplined and focused on continuing to
`drive operational efficiencies and productivity. In fiscal 2017,
`this once again resulted in strong margins. Net income was
`$9.6 billion, while earnings per share on a fully diluted basis
`reached $1.90.
`
`Our balance sheet remains strong, and we generated a
`record $13.9 billion in operating cash flow in fiscal 2017. We
`intend to continue to leverage our strong cash flow to make
`organic and inorganic investments, focusing on augmenting
`our core innovation and generating strong returns.
`
`We announced eight acquisitions in fiscal 2017, with a focus
`on software, collaboration, and security. We are focused
`on scaling all our acquisitions through our channel and
`accelerating the delivery of synergies.
`
`We returned $9.2 billion of cash to shareholders in fiscal 2017,
`composed of $3.7 billion in share buybacks and $5.5 billion in
`dividends. We remain firmly committed to returning a minimum
`of 50% of our free cash flow to shareholders annually.
`
`Focusing on the long term
`As we look to fiscal 2018 and beyond, we remain deeply
`focused on continuing to innovate across our entire portfolio,
`executing efficiently to drive sustainable shareholder value,
`and using our business and technology acumen to make a
`positive impact on the world.
`
`We are excited to build on our momentum from this past
`year and to pursue the opportunities that lie ahead as we
`continue to evolve with the aim of providing the highly secure,
`intelligent platform for digital business.
`
`Thank you for your continued support.
`
`
`Charles H. Robbins
`Chief Executive Officer
`
`October 23, 2017
`
`Cisco fiscal 2017 summary report 3
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:24)(cid:19)
`
`
`
`Financial highlights for
`fiscal 2017
`
`Strong execution driving solid profitability and cash
`flow during business model transition
`
`Revenue trend ($B)
`49.2
`49.2
`12.0
`11.4
`
`37.8
`
`37.2
`
`48.0
`12.3
`
`35.7
`
`Margins (%)
`
`60.4%
`
`62.9%
`
`63.0%
`
`15.2
`
`16.5
`
`18.5
`
`21.9%
`
`25.7%
`
`24.9%
`
`2015
`
`2016
`
`2017
`
`2015
`
`2016
`
`2017
`
`Product revenue
`
`Deferred revenue
`
`Service revenue
`
`Gross margin
`
`Operating margin
`
`Revenue by geographical segment
`
`Net income ($B) and diluted EPS ($)
`
`Americas 59%
`
`APJC 16%
`
`EMEA 25%
`
`10.7
`
`2.11
`
`9.0
`
`1.75
`
`9.6
`
`1.90
`
`Revenue by product category
`and services
`
`2015
`
`2016
`
`2017
`
`Net income $B
`
`Diluted EPS $
`
`Cash flow ($B)
`
`Services 26%
`
`Switching 29%
`
`12.6
`
`13.6
`
`13.9
`
`Other 1%
`
`SP Video 2%
`Security 4%
`
`Wireless 6%
`
`Data Center 7%
`
`NGN Routing 16%
`
`2015
`
`2016
`
`2017
`
`Collaboration 9%
`
`Operating cash flow
`
`4 Cisco fiscal 2017 summary report
`
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:24)(cid:20)
`
`
`
`Financial highlights for fiscal 2017
`
`Delivering shareholder value
`
`Share repurchases and
`diluted share count (millions)
`
`Dividends paid per share ($)
`
`1.10
`
`155
`
`5,146
`
`148
`
`0.94
`
`0.80
`
`118
`
`5,088
`
`5,049
`
`2015
`
`2016
`
`2017
`
`2015
`
`2016
`
`2017
`
`Absolute number of shares repurchased (millions)
`
`Dividends paid per share ($)
`
`Diluted share count (millions)
`
`Managing our portfolio and strategic investment
`
`Acquisitions closed in fiscal 2017
`
`Cloud access security
`broker (CASB) technology
`providing visibility and
`analytics around user
`behavior and sensitive
`data in cloud services
`
`Technology to help
`manage, orchestrate,
`and integrate containers
`across data centers
`
`Application technology
`enabling collaboration
`and productivity in the
`workplace
`
`Cloud application and
`business-monitoring
`platform enabling
`improved application
`and business
`performance
`
`Advanced Analytics team
`from Saggezza
`
`Team of platform analytics
`experts with capabilities in
`cloud and secure platform
`development
`
`Artificial intelligence (AI),
`software and engineering
`talent, and expertise for
`the further evolution of
`Cisco’s collaboration
`portfolio
`
`Cisco fiscal 2017 summary report 5
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:24)(cid:21)
`
`
`
`Our strategy
`
`As our customers add billions of new connections to their enterprises, we believe
`the network is becoming more critical than ever. We believe that our customers
`are looking for intelligent networks that provide meaningful business value through
`automation, security, and analytics.
`
`Our vision is to deliver a highly secure, intelligent platform for digital business. Our
`strategic priorities include accelerating our pace of innovation, increasing the value of
`the network, and delivering technology the way our customers want to consume it.
`
`Accelerating our pace of innovation
` (cid:121) We are building, buying, partnering, investing, and co-developing in the belief that the next innovative idea
`can come from anywhere.
` (cid:121) We are applying the latest technologies such as machine learning and advanced analytics to operate and
`define the network, exemplified by our development of intent-based networking and the launch of our new
`intuitive network, which we believe to be the only network designed for security while maintaining privacy.
` (cid:121) We are furthering our innovation with respect to the move toward more programmable, flexible, and virtual
`networks, or software-defined networking (SDN).
`
`Increasing the value of the network
` (cid:121) We are enabling customers to aggregate, automate, and draw actionable insights from highly distributed
`data, unlocking its power.
` (cid:121) We are deploying security everywhere, across the entire attack continuum—before, during, and after a
`cyberattack—helping our customers minimize the time to threat detection and couple that with a minimized
`time to response.
` (cid:121) We are delivering solutions designed to simplify, secure, and transform how customers work in a
`multicloud environment to maximize business benefits.
`
`Delivering technology the way customers want to consume it
` (cid:121) We are selling products and services that are integrated into architectures and solutions for both customer
`premises and the cloud.
` (cid:121) We are selling more software and subscription-based offerings designed to provide our customers with
`flexibility and continuous value.
` (cid:121) We are adding more software features across our core networking platforms, helping to shift our business
`model to more recurring revenue streams.
`
`6 Cisco fiscal 2017 summary report
`
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:24)(cid:22)
`
`
`
`Our strategy
`
`The Network. Intuitive. Accelerating innovation in the core with intent-based
`networking
` (cid:121) The Network. Intuitive. It is Cisco’s new, wholly integrated networking platform.
` (cid:121) It is designed to be powered by intent, highly secure, informed by context, and able to learn, transforming the data
`flowing across it into new insights for our customers.
` (cid:121) It is designed to be able to deal with the demands of cloud, mobile, big data, analytics, and the loT in a simplified,
`efficient way, helping to solve business problems and enable digital transformation.
` (cid:121) It is constantly learning, adapting, and protecting.
`
`Key solutions
`1 Digital Network
`Architecture
`(Cisco DNA) Center
`Cisco DNA is an intuitive,
`centralized management
`dashboard providing
`information technology
`(IT) teams with an intent-
`based approach to network
`design, provisioning, policy,
`and assurance.
`
`2 Software-Defined
`Access (SD-Access)
`SD-Access is designed
`to provide automated
`policy enforcement and
`network segmentation over
`a single network fabric
`to dramatically simplify
`network access for users,
`devices, and things.
`
`4 Cisco Catalyst 9000
`switching portfolio
`This new family of switches
`with differentiated hardware
`(ASIC) and software (Cisco
`IOS XE) layers is designed for
`the realities of the digital era
`and the demands of mobility,
`cloud, IoT, and security.
`
`3 Network Data
`Platform
`and Assurance
`This powerful new analytics
`platform is designed to
`efficiently categorize
`and correlate the vast
`amount of data running
`on the network and uses
`machine learning to turn
`it into predictive analytics,
`business intelligence, and
`actionable insights.
`
`5 Encrypted Traffic
`Analytics (ETA)
`Using machine learning to analyze
`traffic patterns, ETA is designed to
`identify and mitigate threats even in
`encrypted traffic, without decrypting
`it or affecting data privacy.
`
`6 Software subscription
`
`Customers can only purchase
`the new Cisco Catalyst 9000
`family of switches with a software
`subscription, providing customers
`access to ongoing innovation and
`future investment protection.
`
`7 Cisco DNA Services
`
`Customers can now transform their
`entire network or integrate new
`security and automation capabilities
`into their existing network. Cisco offers
`a comprehensive lifecycle of advisory,
`implementation, optimization, and
`technical services to help them.
`
`Five benefits
`
`Substantial
`operational cost
`savings
`occur due to single
`policy-based
`automation of IT tasks
`across the entire
`network.
`
`Business agility
`lets tasks that used
`to take weeks to
`complete now take
`minutes.
`
`More effective
`security
`makes the network an
`extended data source
`for threat visibility and
`can accelerate threat
`mitigation.
`
`IoT scale
`lets the network
`automatically connect
`and secure any IoT
`device through device
`profiles, at massive
`scale.
`
`Better cloud
`applications
`experience
`helps the network
`automatically adapt to
`new traffic patterns and
`optimize the delivery of
`cloud applications.
`
`This closed loop of defining intent, collecting context, learning, and then implementing new intent based on those
`insights is what we refer to as intent-based networking.
`We believe the combination of our intent-based, highly secure infrastructure with Cisco DNA Center’s single point
`of policy definition, context collection, and learning will become the new approach to building enterprise networks.
`
`Cisco fiscal 2017 summary report 7
`(cid:58)(cid:40)(cid:49)(cid:39)(cid:21)(cid:25)(cid:24)(cid:23)
`
`
`
`Our strategy
`
`Cisco’s executive leadership team
`
`Cisco’s Executive Leadership
`Team brings a diverse set of
`experiences and expertise to
`identify and deliver strategic
`priorities, accelerate our
`innovation, enhance our
`execution, simplify how we do
`business, drive operational rigor,
`and inspire our employees to
`be the best that they can be.
`https://newsroom.cisco.com/
`exec-bios
`
`Joe Cozzolino
`Senior Vice
`President, Services
`
`Rebecca Jacoby
`Senior Vice
`President
`and Chief of
`Operations
`
`Hilton Romanski
`Senior Vice
`President and
`Chief Strategy
`Officer
`
`Chuck Robbins
`Chief Executive
`Officer
`
`Ruba Borno
`Vice President,
`Growth Initiatives
`and Chief of Staff
`to CEO
`
`Chris Dedicoat
`Executive Vice
`President,
`Worldwide
`Sales and Field
`Operations
`
`Francine
`Katsoudas
`Senior Vice
`President and
`Chief People
`Officer
`
`Rowan Trollope
`Senior Vice
`President
`and General
`Manager, IoT and
`Applications
`
`Kevin Bandy
`Senior Vice
`President, Chief
`Digital Officer
`
`Mark Chandler
`Senior Vice
`President, Legal
`Services, General
`Counsel, and
`Chief Compliance
`Officer
`
`David
`Goeckeler
`Executive Vice
`President and
`General Manager,
`Networking and
`Security Business
`
`Kelly A. Kramer
`Executive Vice
`President and
`Chief Financial
`Officer
`
`Karen Walker
`Senior Vice
`President and
`Chief Marketing
`Officer
`
`Executive leadership team diversity
`
`Male 62%
`
`Female 38%
`
`Leadership@Cisco
`
`Learn more about Cisco’s leadership
`team through our online video series at
`https://newsroom.cisco.com/ciscol