Services foundation

Steve Angell
Oct 2011

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
 TS + TS + AS +
Technical Support Advanced Services Alternate Business
(TS) (AS) Models

Alternate Business
Models
Business Value

Assured Operate
Assured Platform
Advanced Services
Advisory Services Assured Build
Planning, Design and Outcome based
Implementation services
Testing & Validation Converged Services
SP Base Migration Managed Services
SMARTnet Network Assurance Enablement

Product Focus Architecture / Business Outcome

Solution Focus

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
 SKUs from price list Statement of Work Based
Subscription

Transaction
AS Order Description Defined scope and
(ASOD) based milestones
Requires Master Services Assigned Cisco PM
Agreement (MSA) Invoice and recognise
between Cisco and revenue upon completion
Customer of milestones
TS Quoting tools Commercial Contracts
AS Pricing Tool used for Team approval required
quoting Can be used with
Invoice in advance and standard Terms &
recognise revenue Conditions in absence of
monthly Master Services
Agreement (MSA)

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
 • Availability management
Assurance • Capacity management
services • Performance management
• Fault management

• Operational/Annual assessment
Optimization • Network Health checks
• Network Change support
Services
• Continuous learning

• Proactively monitors the customer

Remote network around the clock
Management • Manages incidents and taking the lead
in co-managing the network.
Services • Change management
• Root cause analysis
Focused • Software/security risk assessment
• Change management support
Tech Support
• High-touch tech support

• Cisco.com/TAC access
• Advance hardware replacement
Tech Support • Multiple Service Level – 24x7/NBD/RTF
• Software updates/Upgrades

• All underpinned by Service Level Agreements that support the quality of the services offered.
© 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
 • Strategy and Planning
Advisory • Business Architecture (eg transformation)
services • Mgmt services (eg Architecture office)

• Individually scoped and priced

AS Custom • Can include sub-contractors, or various
priming modes.

• Predefined Scope & SoW (variable price)

• Marcom with benefits and value
AS PDI • Usually Cisco only to partner / Customer
• Designed for most AS projects

AS Fixed • Targeted services that are simple to sell

• Fixed scope and Fixed price
Scope

Collaborative
AS Fixed Scope and PDI services are/ outlined on:
• Fixed scope Price services for
Professional Partners
http://wwwin.cisco.com/CustAdv/services/advtech/
Services

©©2011
2010Cisco
Ciscoand/or • All underpinned by Service Level Agreements that support the quality of the services offered.
and/oritsitsaffiliates.
affiliates.All
Allrights
rightsreserved.
reserved. Cisco
CiscoConfidential
Confidential 5
 So how to design services to meet opportunity needs

Classic Managed Managed and Cloud Services

Resale Services
Customer Hosted
CPE-based
Premise Services Communication DaaS / IaaS SaaS
Equipment Solutions

Delivery Customer Hosts - MSP Hosts -

Platform CPE Next-Generation Data Center

Consumption
Model Dedicated
On Premise On-Demand
On Demand

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
Asset Ownership variance
Name Who Who When does When MSP Asset Asset local legal
Builds? Manages? MSP take ownership Ownership Location entity
Operate? of assets required?
When
Cisco
Build Integrate Platform has MSP (BAU or
(AS MSP Upon Shipment MSP No
Transfer passed ready Capital funded)
PDI)
for use tests

Build Operate After

Cisco first,
Cisco accepting MSP (BAU or
Transfer MSP after
Operational
Upon Shipment
Capital funded)
MSP No
transfer
(MSP Owned) responsibility

Build Operate After

Cisco first, After accepting Cisco first then
accepting
(Cisco Owned) Cisco MSP after
Operational
Operational MSP (BAU or MSP Yes
transfer responsibility Capital funded)
Transfer responsibility

Build Own
Cisco or
Operate or Cisco Cisco Never Never Cisco
MSP
Yes
“White Label”

• "Transfer" refers to the transfer of operational responsibilities and/or assets

• "Manages" refers to who operates the platform
• "Ownership" also refers to Cisco Capital or 3rd party financing company
• If Cisco is selling to an Enterprise end-user, substitute "customer" for "MSP”
Design / Operational Responsibility variance
Name Scope / Attributes
Cisco builds and integrates the platform, but
transfers ownership/title to the MSP upon
Build Integrate shipment of the equipment then Design and
Transfer Operational responsibility when the platform
is ready for use (upon acceptance).
Build Integrate As above plus assured component
Transfer Hand over to Customer Operations
As above plus ongoing Program mgmt
Capacity / Availability management
Ownership of Platform Design
Build operate Performance management
Transfer Release / Change Management
Support for Problem management
Test and Validation (optional)
Cisco builds/integrates the platform and
operates it for an agreed period of time.
Build Operate Examples are:
Transfer or Platform / Solution monitoring
Incident management
BOO Problem management / initiation
Customer relationship management
Example Supporting Services
AS-T PDI services
Transactional based payment
KPIs: SoW defined functional tests
(AS PDI + TS)
AS-T PDI services plus Completion based on
acceptance tests linked to KPIs
Transactional based payment (built into contract)
KPIs: Delivery / schedule, Design Acceptance tests
(Assured Build)
As per above plus:
Maintenance services with SLO / SLA
Ongoing services to optimize the platform, advise of
capacity growth, risk mitigation, release and change
mgmt., etc.
Knowledge sharing for Customer Ops
Subscription based Platform Pricing
KPIs: Capacity and availability
(Assured Platform)
As per above plus:
Platform / Solution monitoring, platform operation
services
Subscription based Platform Pricing
KPIs: response & restoration and performance
(Assured Operate)
Impact to delivery services
Commercial Service Needs
Model
• Architecture and Design
Pay as You scalable to fit Growth plans
Go • SmartNet / SAS
• Limited Capacity management
• As above plus
• Management of production
Flexible and pooled devices
Demand • Optimisation Services for
Assurance requirements *
• As above plus
• PMO services to manage the
Utility (Pay for usage of the solutions
Use) • Solution Assurances for
Capacity and Availability *
• Platform performance *
• Either Assets transfer to Cisco
(called an ‘asset heavy’
model), or ownership/title is
Outsource retained but management of
the assets transfers to Cisco
(an ‘asset light’ model).
Customer Drivers Delivery Services
Customer Leverage Own NOC for Architecture and
operations and provisioning designed to scale,
Optimised as it grows
Customer can manage optimization of
solution as required for KPIs
Cash flow in line with revenue Maintenance services
As Above plus
Flexible in platform for transience As above, plus
measurement and
capacity
Optional assurance Capacity management
Time to market for new Customers
Agnostic about architecture, but focus
Platform management
on the services.
services or complete
Technology ready for next service
operation including
Capacity growth and expansion
user provisioning.
Technical risk mitigation
KPIs: Capacity and
Availability SLAs* or SLOs
availability
No Capex investment
Risk mitigation
Not a recommended
Cost reduction
Delivery model
Not core business
 Partner Cisco

Assured Build AS Optimise Assured Platform Assured Operate

Solutions Prepare, Solutions Prepare, Solutions Prepare,
Solution Build
Plan and Build Plan and Build Plan and Build

Maintenance Solution Maintenance Support Solution Maintenance Support Solution Maintenance Support Solution Maintenance Support

PMO / PM and Governance PMO / PM and Governance PMO / PM and Governance PMO / PM and Governance

Knowledge Transfer Knowledge Transfer Knowledge Transfer Knowledge Transfer

Platform Design Management Platform Design Management Platform Design Management Platform Design Management
Architecture & Capacity / Availability Mgmt Capacity / Availability Mgmt Capacity / Availability Mgmt
Engineering Capacity / Availability Mgmt
Release / Change Management Release / Change Management Release / Change Management Release / Change Management
Problem Management Problem Management Problem Management Problem Management
Support Support Support Support
Test and Validation Test and Validation Test and Validation Test and Validation

Platform Monitoring Platform Monitoring Platform Monitoring Platform Monitoring

Problem Management Problem Management Problem Management Problem Management

Platform
Operations Incident Management Incident Management Incident Management
Incident Management
Change Management Change Management Change Management Change Management

Configuration Management Configuration Management Configuration Management Configuration Management

Service Fulfillment Service Fulfillment Service Fulfillment Service Fulfillment

& Activation & Activation & Activation & Activation
End Customer Billing End Customer Billing End Customer Billing End Customer Billing
End Customer
Support End Customer Help Desk End Customer Help Desk End Customer Help Desk
End Customer Help Desk
End Customer Relationship End Customer Relationship End Customer Relationship End Customer Relationship
Management Management Management Management
 Supporting Services
Built from Service Catalogue

Step Financing
Aligning Costs to • Step financing Mandatory Service
For each defined offer
Revenue

Multi-Term Targeted Services

Financing Based on Customer specific needs
• Multi-term financing (VDI, Virtualization, cloud, etc)
Aligning Costs to
Revenue/ Smarter
Refresh Cycle
Optional Services
To add value by sharing risk or taking
Subsidized Base • With financing
on more responsibility

Aligning Costs to • Without financing

Revenue
What is the business
Decision reason for the solution
Trees and how the right
service can be picked
• Core (Cisco led, no financing)
Pay As You Grow
• PAYG I (with financing)
Standby Capacity • PAYG II (with financing) Using business rules
Service create the pricing model
Pricing for the customer

Flexible Demand • Burst Capacity

Usage-Based • Hybrid PAYG

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
 Business and Business
Business Network Technology
Technology Solution
Value Architectural Readiness
Strategy Architecture
Justification Planning Assessments
Alignment Planning

Advanced Network
Advanced Foundation IT Process
Technology Migration
Technology Technology and
Planning and Planning
Strategy Support System Design Governance
Design and Support

Ongoing
Project and Operational Software
Network Network
Change Readiness Analysis and
Performance Change Support
Management Assessment Support
Tuning

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
 Each Whole Offer or offer for a customer requires specific delivery building blocks chosen
using these guidelines:
• Chosen Architecture or solutions
• Customer business needs and the matching “right” commercial offer
These offers are Risk offload, not cost offload (premium)
• Customer and Partner service delivery strategy
• Customer Culture (for service content and success factors)
Sharing knowledge, Internal communications, handling change, how process oriented are they, etc
• Customer and Partner capabilities and availability of resources (skills and Coverage)
• Customer and Cisco preferred operating model
• Risk and Responsibility sharing
• Desired speed of execution
• Assurance requirements
• Position Cisco Services using the framework to ensure customer success
Focus on “Recommended” services for Medium & Large account opportunities

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
Thank you.
 SP Assurance Services
SLAs, SLOs and NHI
Fault Mgmt Avail. Mgmt Perf Mgmt Capacity Mgmt
Service Service Service Service

• New Real Time • New Real Time • New Real Time Delay, • New Real Time Logical
Reliability SLA: Time Network Availability Loss, Jitter and Physical Capacity
Between Failure SLA Performance Management SLAs
• Granularity at the • Granularity at the Management SLAs • Granularity at the
Device, Network and Device, Network and • Granularity at the Device, Network and
Service Level Service Level Device, Network and Service Level
• Possibility to include • Possibility to include Service Level • Possibility to include
Custom Reliability Custom Availability • Possibility to include Custom Capacity
metrics as collected metrics as collected Custom Performance metrics as collected by
by PNOC for each by PNOC metrics as collected PNOC for each Solution
Solution • Inclusion with other by PNOC for each • Inclusion with other
• Inclusion with other NOS offerings for Solution NOS offerings for new
NOS offerings for further evolution of • Inclusion with other Network Performance
new Network current Network NOS offerings for new SLA offerings
Reliability SLA Availability SLA Network Performance • Operational SLAs for
offerings • Operational SLAs for SLA offerings each Service Tier
• Operational SLAs for each Service Tier • Operational SLAs for
each Service Tier each Service Tier

Network Health Index: Calculated in Real Time for each Service Product and also available for SLA inclusion

Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Public 15
 Evolve Portfolio With Smart Capabilities
Enhanced Value & Create Differentiation
 Evolve from a Reactive to Proactive support services
 Build Predictive capabilities through better Analytics
 Deliver a Pre-emptive Day 2 support model
 Tiered portfolio with different service level
Pre-emptive Pre-emptive Capabilities (Real time
Offers
Management of Fault, Availability Performance,  Assurance
Capacity to drive outcomes) Services for IP
NGN

Predictive Predictive Capabilities (Real-time Offers

monitoring, Network Health Framework I&II)  Network Health
Analysis & Reporting
 Benchmarking

Offers
Proactive Network-level Smart Capabilities  SP NOS
(IB Management, Alerts & Notification, Diagnostics,  Total Network Care
(integrated offers)
Network Optimization)

Reactive Traditional Services Offers

 SP Base
(TAC Support /CCO/AR/  FTS
Software updates/High Touch)

Device Network Operations Services

Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16
 AS Fixed (AS-F)
Fixed Scope Services
Quoting • No flexibility in configuration
• Fixed Pricing
• No Scoping allowed
• Price list data sheets
Ordering • Online orderable in Cisco
Marketplace via Ordering Tool
• Purchase Order is the evidence of
arrangement
Booking • Deal review and approval required
only for NON-STANDARD deals
(MDM) – with streamlined process
• Contracts Management and Corp
Revenue as interim checkpoints
• Booking validations required
Delivery • Fixed scope and deliverables
• Fixed price/fixed margin delivery
• Fixed Delivery / No Flexible Delivery
• No Change Request process
• Click to Accept signifies completion
of delivery– by billable party
Invoicing • Invoicing (100%) following service
completion, based upon completion
certificate.
Finance • Revenue treatment as completed
deliverable with receipt of Click to
Accept
© 2010 Cisco and/or its affiliates. All rights reserved.
AS Transaction (AS-T)
SOW-based Services
• SOW OR Budgetary Proposal
Template
• Customized quoting and scoping
• Custom milestone invoicing
• Custom Pricing
• Faxed Ordering Process
• Signed contracts and PO are
evidence of arrangement
• Available for Direct and 1Tier
• Deal review and approval required
(MDM)
• Contract Management and Corp
Revenue review required
• Booking validations required
• May be adjusted via Change
Management process.
• Milestone Completion Certificate –
signed by contracting party
• Custom invoicing per milestone
• Invoicing based upon Milestone
Completion Certificate.
• Revenue assessment required
• Milestone Completion Certificate
AS Subscription (AS-S)
Optimization Services
• Manual Quoting (ASPT)
• Variable Pricing (med degree of
variability)
• ASPT based Pricing
• Internal quoting (CSCC)
• Faxed Ordering Process
• Quote (manual) and PO are evidence
of arrangement
• Available for Direct, 1 Tier, 2 Tier
• Deal review and approval required
(MDM)
• Booking validations required
• May be adjusted within Services
Description via Flexible Delivery
process.
• No Change Request process
• Invoicing (100%) in advance
• Revenue treatment as ratable
• Duration of contract determines
completion.
Cisco Confidential 17
 Cisco Optional Service

Partner

Project Management
Prepare / Plan Design Build
/ PMO

Business Requirements Design kick-off Site readiness Project management

Service Assurance
Technology Strategy Staging and Logistics Governance
Low Level Design (LLD)

Operations Strategy Implementation Logistics and Order Mgmt,

Staging Plan Process (Provisioning)
Platform Architecture or Platform Acceptance
High Level Design (HLD) Implementation Plan

Proof of Concept Platform Ready For Use Migration / Migration Support

plan
Knowledge transfer
Network Assessment
Migration Plan
Support initial end
Operational Assessment customer deployment
Operations / Staffing
Implementation Plan
Management S/W integration
Business Readiness
Implementation Plan
Staff Training

Business Readiness
Testing

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
 Cisco

Platform Design Capacity / Availability Project Management Partner

Management Management / PMO
Optional Service

Design Strategy, reviews and Capacity / Usage monitoring Project management

Implementation
Service Assurance
Network Management Availability monitoring Management
Reviews and Strategy
Performance Audits Logistics and Order Mgmt,
Management S/W Integration Process
Design Support
Forecasting
Knowledge
New capacity ordering Management
Release / Change Remote Knowledge Transfer
Management
Technical Knowledge library
Software / Hardware Strategy Problem Management
Support
Staff training
Major Change Management Solution problem support
to TAC
Test and Validation
User configuration changes Unscheduled change support

New release / Platform testing

Level 1 support

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19