Case Study:

Cisco Services Helps Lower TCO for Cisco IT

A Case Analysis Submitted to the Faculty

of the Graduate School of the
AMA Online University

In Partial Fulfillment of the requirement

for the Degree of Master in
Business Administration

ALMARIO G. PARCO, JR., CPA

20200113412
 Table of Contents
Page

TITLE PAGE......................................................................................................1

I. INTRODUCTION/BACKGROUND................................................................3

II. POINT OF VIEW...........................................................................................4

III. TIME CONTEXT...........................................................................................5

IV. STATEMENT OF THE PROBLEM..............................................................5

V. STATEMENT OF THE OBJECTIVES..........................................................6

VI. AREAS OF CONSIDERATION (S.W.O.T)..................................................7

VI. ALTERNATIVE COURSES OF ACTION....................................................8

VIII. STRATEGY FORMULATION....................................................................9

IX. ACTION PLAN/PROGRAMS....................................................................11

X. CONCLUSIONS..........................................................................................13

XI. ATTACHMENT..........................................................................................14

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I. Introduction

Cisco is one of the leading leaders in Information Technology and

Computer Networking Industry that assists organizations with taking
advantage of the innovation of tomorrow by demonstrating that astounding
things can happen when you associate the beforehand detached. The
idea of solutions being headed to address explicit customer challenges
has been with Cisco since its beginning. From that point forward Cisco
has molded the future of the Internet by making extraordinary worth and
open door for clients, employees, investors and other stakeholders and
has become the worldwide leader in networking – transforming how
individuals connect, communicate and collaborate.

As a common scenario for many huge IT organizations. The

significant growth experienced by Cisco IT in their infrastructure
capabilities leading to the rise in their operational expenditure. According
to the recent research, up to 75 percent of enterprise IT costs are
operating expenditures.[ CITATION Gar11 \l 1033 ]

The most significant issue for the customer association is to lessen

the operational expenses as the expenditure has been on the higher side
because of the spread of the business. The customers additionally
endeavor to improve the performance of the network and progress the
mechanism to embrace the better technology with the help of Cisco
Services. Cisco Services System endeavors to accommodate a full life
cycle engagement. It would involve the design, operations, application and
advancement which assists customers with enjoying Cisco IT to set up its
spending plan and ventures more deliberately to receive the ideal
advantage in return. Cisco IT has been a piece of the sensational
development and this development has joined an ascent in its operational
expenditures. Cisco IT turn the assistance of Cisco Services which would

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 empower the former to increase the business flexibility, decrease in costs
and above all facilitating the improved technology to have a better network
infrastructure.

This becomes the challenge and the focus of this business case
study: What are the possible causes of action that Cisco IT needs to take
to deploy its IT budget and invest more strategically? For a more strategic
IT budget and investment.

II. Point of View

Like most of the IT Companies, there is consistently a need to

comprehend where their cash is going and what they are getting for their
ventures. At the point when spending plans are contracting this turns out
to be a higher priority than at any other time. Understanding costs assists
offices with taking full advantage of their cash, dispose of wasteful aspects
and discover financing for higher need employments. [CITATION Gra13 \l
1033 ] The equivalent is likewise valid for Cisco. It is a built-up
organization; an overall leader in IT. During the 1990's, it has encountered
a time of fast development, be that as it may, such quick foundation
extension additionally brought about some operational wasteful aspects
because of absence of gauges, procedures and instruments. Throughout
the years, Cisco IT had the option to improve its operational efficiencies,
yet it realized that proceeded with development was not too far off. With
proceeded with development expected, the test for Cisco IT was to focus
on how it could make its present group increasingly productive and viable
while keeping operational and capital expenditures contributed
deliberately.[ CITATION CIS11 \l 1033 ]

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 In business, it is inevitable to commit an errors or omissions; issues
emerge. Basically, one must locate the greatest effect, either by number of
times the issue emerges or the financial impact it has on the business, or
some other scoring method employed. At that point it is an instance of
concentrating the critical thinking exertion on this issue until it is settled.
[ CITATION Lee16 \l 1033 ] Like in any organizations were issues emerge, one
of the issues for Cisco was its unavoidable development, they expected to
address noted wasteful aspects incorporated with their development and
locate a viable answer for their concern.

III. Time Context

Cisco IT had encountered the restructuring of IT operational cost

and capability from 2006 to 2011.

IV. Statement of the Problem

The study emphasizes on changes as it moves past the beginning

up stage. Distinguishing open doors for business development turns into a
need for long haul achievement. Be that as it may, development
additionally forces dangers. Cisco's noteworthy development in its
foundation capacities brings more prominent efficiency and readiness for
the general Cisco organization. For the IT department of Cisco, this
development had implied an ascent in operational costs. In spite of the
fact that development has its chances, it additionally forces issues for
Cisco IT. The primary issue was the way to decrease operational costs,
increment business adaptability and quicken innovation reception to
enhance arrange foundation. Cisco IT needed to focus on how it could
make its present group progressively productive and powerful to

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 guarantee unsurprising execution and let examined to usage of resources
to help expanded business requests.

V. Statement of the Objectives

For this case study, the main objectives for finding the right
alternative course of action for Cisco IT were:

1) To guarantee unsurprising execution and to review the

operational cost to help expanded business demand;

2) To drive advancement with new innovation for Cisco groups;

and

3) To migrate from next-generation of network infrastructure

while holding operational and capital expenditures down.

VI.

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VII. Areas of considerations

STRENGTHS WEAKNESSES

1.) Strength in greater productivity

I
and agility of Cisco IT due to 1.) Less effective and effi cient Cisco IT
N
expansion department due to continued growth
T
2.) Strength on how they
E
designed/managed to deploy their 2.) Unable to deliver greater of quality
R
IT budget and investment service/product due to operational
N
strategically ineffi ciencies
A
3.) Brand name that is trusted by its
L
stakeholders
4.) Wide range of Innovative
Products/Services

OPPORTUNITIES THREATS

1.) Opportunity for Growth and 1.) Threat of Complex Environment-

Expansion- significant growth on complex environment may lead to
E consumer/ customer demand uncertainties that could impact the
X quality of services Cisco IT offered to
T its stakeholders
E 2.) Opportunity in the Market- 2.) Threat of Industry Competitors- IT
R demand for a next-generation companies may advance to next-
N network infrastructure generation network infrastructure and
A Cisco may not be able to take
L advantage of this due to expanded
business requirements
3.) Opportunity to offer IT-as-a-
service (ITaas)
4.) Opportunity to Collaborate- team
up Cisco Services

VIII.

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IX. Alternative course of action

Below is a list of alternative courses of action Cisco IT can take to

solve its problem or meet the challenges in their organization.

(1.) Collaboration Approach - Collaborate with Cisco Services for help in

growing from a break/fix way to deal with help a more extensive
arrangement of IT abilities while keeping operational and capital
expenditures down.

(2.) Proactive Approach - Adopt a proactive way to deal with IT tasks and
operations to help guarantee total, start to finish support in conveying
ITaas.

With elective number (1.), the benefit of collaborating with Cisco

Services is for Cisco IT to recognize various operational abilities that could
be improved by utilizing the individuals, procedures, and innovation skill of
different Services groups. The advantage could altogether improve cost
and time investment funds. Cisco IT could resolve bolster gives a lot
quicker than previously situation.

With elective number (2.), adopt a proactive approach to IT tasks to

help guarantee total, start to finish support in conveying ITaas. In a full life-
cycle engagement, it would begin with foundation configuration surveys,
move to usage, and in the end center around tasks and improvement
direction. This is a progressively vital approach to convey their IT financial
plan and speculation deliberately.

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 The two approaches likewise hold chances; the threats that the
group up may not be effective or may fall apart or being proactive may not
suit their present industry which could prompt more operational expenses
rather than savings.

X. Strategy Formulation

Confronted with the challenge, Cisco IT realized the underlying

drivers of their concern. Operational Expenses goes up as they develop
yet formulating a procedure to increase the ascent in their costs was one
of their key intends to understand their pickle. Collaboration likewise holds
risk; the risk that the group up may not be fruitful or may fall flat. In this
world were innovative progression are at its pinnacle, the hazard is
likewise high when there are speculations in question. It might either be a
triumph or come up short.

With the present increment in client portability, it's a higher priority

than at any other time for organizations to adopt a strategy on effective
collaboration solutionns to keep up cooperation and improve efficiency
with their employees, partners, suppliers, customers, and other
stakeholders. Collaboration could carry extraordinary advantages to
organization, and it requires a system upgraded to accomplish them.

According to Gore “Collaboration” usually means “people working

together productively by sharing voice, video, and data”. Inside Cisco, the
standard idea of Collaboration includes a lot of IT Technology, like: all
voice-based Unified Communication (that is, all IP Telephony from
hardware and software phones, and all Unity voicemail, and all Contact
Centers); all Video conferencing (from Jabber or WebEx clients, video
phones, desktop video, room TP, and immersive TP);all streaming video
like Cisco TV (IP/TV) for large multicast events; and software clients like
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 email, web sites and blog sites and document repository sites, Jabber IM,
voice and video, and WebEx voice, video and data. But sometimes
Collaboration means more. For example, Cisco IT likes to say that we
“enable people to collaborate with any device, from anywhere, at any time”
which really expands the scope of collaboration.” Collaboration as a
strategy for Cisco IT would bring phenomenal benefits to their
organization, and it requires a network optimized to achieve them. Being
proactive will follow from this collaboration strategy because there are
greater chances of working productively together. [ CITATION Ric15 \l 1033 ]

XI.

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XII. Programs
Action
I. Adopting a Proactive Approach to IT Operations
Have Cisco Network Optimization internal production environment
Service (NOS) in the design and prior to any major upgrades to
compatibility testing
Up-to-date Cisco Network
II. Enabling Itaas Through an Internal Private Cloud
Deploy Internal Private Cloud
Create internal process
improvements and structural
changes in the way services are
requested, deployed and
supported.
III. Achieve Significant Cost and Time Savings
Resolve support issues
Internal Process Changes
Save on labor costs
Specific Tasks Responsible Area
Cisco NOS perform the bulk of the
activities during the design and
compatibility testing to stimulate
Cisco IT (design)/ Cisco NOS
enable Cisco IT to leverage the
deep expertise and industry
knowledge of experienced NOS
engineers.
Cisco network collector and smart
analytics capabilities performs
periodic audits to report on end-
of-life/end-of-sale products, and Cisco Network Collector /Cisco IT
the reports are sent to IT
management and engineering
teams for action.
Cisco IT Elastic Infrastructure
Services (CITEIS). Cisco Unified
Computing System and Cisco
Nexus products as well as the
Cisco Intelligent Automation
solution use Cisco Tidal Cisco IT
Enterprise Orchestrator software
to automate the provisioning of
virtual environments, including
network storage and compute
resources.
Build the IaaS platform and
foundation for the delivery of
Cisco IT/ Cisco Services
applications, communications,
and virtual desktops,
Cisco FTS provides Network-wide
troubleshooting to resolve Cisco IT/ Cisco Services
support issues faster
Implement positive internal
process changes relating to CITEIS
Cisco IT/ Cisco Services
to reduce TCO for infrastructure
operations
Accelerate time deployment
through Cisco Remote Cisco IT/ Cisco Services
Management Services (RMS)
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XIII. Conclusion

Cisco is the overall leader in IT, yet even Cisco who experienced
huge development in their foundation capacities were confronted with the
test in the ascent of their operational expenses and expanded business
demands. The primary issue for Cisco IT was the means by which to
diminish costs, increment business adaptability and quicken innovation
reception streamlining its system framework. Cisco IT needed to focus on
how it could make its present group increasingly productive and
successful to guarantee unsurprising execution and let loose assets to
help expanded business demands.

The main goal of Cisco IT was to:

(1) Support increased business demands to ensure predictable
performance and free up resources;
(2) drive innovation with new technology for Cisco teams and
(3) implement of a next-generation network infrastructure while
keeping operational and capital expenditures down.

One elective approach for Cisco IT was collaborating with Cisco

Services in order to recognize various operational capabilities that could
be improved by utilizing the individuals, procedures, and innovation
mastery of different Services groups. The advantage could altogether
improve cost and time savings. Cisco IT could resolve bolster gives a lot
quicker than previously. Collaboration likewise holds risk; the risk that the
group up may not be effective or may fizzle. For a progressively key IT
financial plan and investment, Cisco IT enrolled the assistance of Cisco
Services to increment business flexibility, diminish costs, and quicken
innovation appropriation by improving its system foundation. Another was
to adopt a proactive approach to IT operations to help guarantee total,
end-to-end support in conveying ITaas. In a full life-cycle engagement, it

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would begin with framework configuration audits, move to usage, and in
the end center around tasks and enhancement direction. Collaboration,
from anyplace and at whenever, empowers Cisco employees all around
the globe to work gainfully together. This improves profitability; they can
construct groups from the best individuals for any assignment regardless
of where they are. They can exploit individuals around the globe who
before might not have had the option to utilize in view of their good ways
from typical Cisco areas. Cisco can integrate recently obtained
organization's employees quicker and furthermore increase employee
retention, as moving to new areas no longer methods losing employment.
The objective: collaborate from anyplace, on any gadget, whenever. Along
the way, found ways to save millions of dollars monthly. [ CITATION CIS18 \l
1033 ]

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XIV. Attachments

CISCO. (2011). Cisco Services Helps Lower TCO for Cisco IT. pp. 2-3.
CISCO. (2018). 2018 Annual Report.
Gartner. (2011). IT Metrics: IT Spending and Staffing Report, 2011.
Gore, R. (2015, March). A Wider View of Collaboration – and its Benefits. Inside
Cisco IT.
GrantThornton-LLP. (2013). Cutting Cost Effectively Using Strategic Cost
Management. 3.
Lee, C. (2016, March). Systematic Problem Solving Strategies: Improving
Customer Satisfaction and Efficiency.

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