Cisco 2012 Annual Report Download - page 17

Enterprise
Enterprise businesses are large regional, national, or global organizations with multiple locations or branch
offices and typically employ 1,000 or more employees. Many enterprise businesses have unique IT,
collaboration, and networking needs within a multivendor environment. We strive to take advantage of the
network-as-a-platform strategy to integrate business processes with technology architectures to assist customer
growth. We offer service and support packages, financing, and managed network services primarily through our
service provider partners. We sell these products through a network of third-party application and technology
vendors and channel partners, as well as selling directly to these customers.
Service Providers
Service providers offer data, voice, video, and mobile/wireless services to businesses, governments, utilities, and
consumers worldwide. They include regional, national, and international wireline carriers, as well as Internet,
cable, and wireless providers. We also group media, broadcast, and content-providers within our service provider
market, as the lines in the telecommunications industry continue to blur between traditional network-based
services and content-based and application-based services. Service providers use a variety of our routing and
switching, optical, security, video, mobility, and network management products, systems, and services for their
own networks. In addition, many service providers use Cisco data center, virtualization, and collaboration
technologies to offer managed or Internet-based services to their business customers. Compared with other
customers, service providers are more likely to require network design, deployment, and support services
because of the scale and complexity of their networks, which requirements are addressed, we believe, by our
architectural approach.
Commercial
Generally, we define commercial businesses as companies with fewer than 1,000 employees. The larger, or
midmarket, customers within the commercial market are served by a combination of our direct salesforce and our
channel partners. These customers typically require the latest advanced technologies that our enterprise
customers demand, but with less complexity. Small businesses, or companies with fewer than 100 employees,
require information technologies and communication products that are easy to configure, install, and maintain.
These smaller companies within the commercial market are primarily served by our channel partners.
Public Sector
Public sector entities include federal governments, state and local governments, as well as educational institution
customers. Many public sector entities have unique IT, collaboration, and networking needs within a multivendor
environment. We sell to public sector entities through a network of third-party application and technology
vendors and channel partners, as well as selling directly to these customers.
Sales Overview
As of the end of fiscal 2012, our worldwide sales and marketing departments consisted of 24,507 employees,
including managers, sales representatives, and technical support personnel. We have field sales offices in 93
countries, and we sell our products and services both directly and through a variety of channels with support from
our salesforce. A substantial portion of our products and services is sold through our channel partners, and the
remainder is sold through direct sales. Our channel partners include systems integrators, service providers, other
resellers, distributors, and retail partners.
Systems integrators and service providers typically sell directly to end users and often provide system
installation, technical support, professional services, and other support services in addition to network equipment
sales. Systems integrators also typically integrate our products into an overall solution. Some service providers
are also systems integrators.
9