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Cisco Unveils Plan for Building Internet for the Next Decade of Digital Innovation

Cisco today unveiled further details behind its technology strategy for building a new internet — one designed to push digital innovation beyond the performance, economic and power consumption limitations of current infrastructure. A multi-year approach that is defining the Internet for decades to come, Cisco’s strategy is already delivering technology breakthroughs to pave the way for the world’s developers to create applications and services they have only begun to imagine.

Cisco introduced its latest innovation including Cisco Silicon OneTM, the industry’s only networking
silicon architecture of its kind; released the new Cisco 8000 Series, the world’s most powerful carrier
class routers built on the new silicon; and announced new purchasing options that enable customers to
consume the company’s technology through disaggregated business models.

“Innovation requires focused investment, the right team and a culture that values imagination,” said
Chuck Robbins, chairman and CEO of Cisco. “We are dedicated to transforming the industry to build a
new internet for the 5G era. Our latest solutions in silicon, optics and software represent the continued
innovation we’re driving that helps our customers stay ahead of the curve and create new, groundbreaking experiences for their customers and end users for decades to come.”

Building Blocks for the Internet for the Future
Over the next decade, digital experiences will be created with advanced technologies — virtual and
augmented reality, 16K streaming, AI, 5G, 10G, quantum computing, adaptive and predictive
cybersecurity, intelligent IOT, and others not yet invented. These future generations of applications will
drive complexity beyond the capabilities current internet infrastructure can viably support.

For the past five years, Cisco has driven a technology strategy that is building the internet our customers
will need for the future success of their business in an advanced digital world. Aimed at solving the
toughest problems that will emerge as digital transformation taxes current infrastructure to its breaking
point, this strategy will lead to the next-generation of internet infrastructure that combines Cisco’s new
silicon architecture with its next-generation of optics.

Cisco’s strategy will change the economics behind how the internet will be built to support the demands of future, digital applications and will enable customers to operate their businesses with simpler, more cost-effective networks.

Cisco’s strategy is based on development and investments in three key technology areas: silicon, optics
and software. “Pushing the boundaries of innovation to the next level — far beyond what we experience today — is uture and we believe silicon, optics and software are the technology levers that will
deliver this outcome,” said David Goeckeler, executive vice president and general manager of the
Networking and Security Business at Cisco. “Cisco’s technology strategy is not about the next-generation
of a single product area.

We have spent the past several years investing in whole categories of independent technologies that we believe will converge in the future — and ultimately will allow us to solve the hardest problems on the verge of eroding the advancement of digital innovation. This strategy is delivering the most ambitious development project the company has ever achieved.”

Introducing Cisco Silicon One – Breakthrough Unified, Programmable Silicon Architecture
The new Cisco Silicon One will be the foundation of Cisco’s routing portfolio going forward, with
expected near-term performance availability up to 25 Terabits per second (Tbps). This
is the industry’s first networking chip designed to be universally adaptable across service provider and
web-scale markets.

Designed for both fixed and modular platforms, it can manage the most
challenging requirements in a way that’s never been done before. The first Cisco Silicon One ‘Q100’
model surpasses the 10 Tbps routing milestone for network bandwidth without sacrificing
programmability, buffering, power efficiency, scale or feature flexibility.

Traditionally, multiple types of silicon with different capabilities are used across a network and even
within a single device. Developing new features and testing can be lengthy and expensive. Unified and
programmable silicon will allow for network operators to greatly reduce costs of operations and reduce
time-to-value for new services.

“We look forward to working with Cisco as it enters the high-end routing silicon space, collaborating to
help meet the next generation of network demands for higher speeds and greater capacity,” said Amin
Vahdat, fellow and vice president of Systems Infrastructure, Google Cloud.

“Facebook has been a strong advocate for network disaggregation and open ecosystems, launching key
industry initiatives such as the Open Compute Project and the Telecom Infrastructure Project to transform the networking industry,” said Najam Ahmad, vice president, Network Engineering at Facebook.

“Cisco’s new Silicon One architecture is aligned with this vision, and we believe this model offers network operators diverse and flexible options through a disaggregated approach.”
“Cisco is changing the economics of powering the Internet, innovating across hardware, software, optics
and silicon to help its customers better manage the operational costs to function on a larger scale for the
next phase of the Internet,” said Ray Mota, CEO and principal analyst at ACG Research. “As we move to
2020, the timing of delivering operational efficiency will be vital.”

Introducing: Cisco 8000 Series Platform Powered by Cisco Silicon One– Industry Leading
Performance
The new Cisco 8000 series is the first platform built with Cisco Silicon One Q100. It is engineered to help service providers and web-scale companies reduce the costs of building and operating mass-scale
networks for the 5G, AI and IOT era. Standout features include:
• Optimized for 400 Gbps and beyond, starting at 10.8 Tbps in just a single rack unit
• Powered by the new, cloud-enhanced Cisco IOS XR7 networking operating system software,
designed to simplify operations and lower operational costs
• Offers enhanced cybersecurity with integrated trust technology for real-time insights into the
trustworthiness of your critical infrastructure
• Service providers gain more bandwidth scale and programmability to deliver Tbps in even the
most power and space constrained network locations

Global Customer Deployments and Trials
Cisco is working with a group of pioneering customers on deployments and trials of the Cisco 8000
Series. STC, the leading telecom services provider in the Middle East, Northern Africa region, marks the
first customer deploying the new technology. Ongoing trials include Comcast and NTTCom among
others.
Optics for 400G and Beyond
Building a new internet that can support future digital innovation will depend on continued breakthroughs in silicon and optics technologies. Cisco is unique in the industry with advanced intellectual property in both areas.

As port rates increase from 100G to 400G and beyond, optics become an increasingly larger portion of the cost to build and operate internet infrastructure. Cisco is investing organically to assure our customers that as router and switch port rates continue to increase, optics will be designed to meet the industry’s stringent reliability and quality standards.

Through the company’s qualification program, Cisco will test its optics to comply with industry standards and operate in Cisco – and non-Cisco hosts. With this program, customers can utilize Cisco optics in applications where non-Cisco hosts have been deployed and have confidence that the optics will meet the reliability and quality standards that they have come to expect from Cisco.

In addition, as silicon and silicon photonics advance, functions that were traditionally delivered in
separate chassis-based solutions will soon be available in pluggable form factors. This transition has
significant potential benefits for network operators in terms of operational simplicity. Cisco is investing in silicon photonics technologies to effect architectural transitions in datacenter networks and service
provider networks that will drive down cost, reduce power and space, and simplify network operations.

Changing the Economics of the Internet with Flexible Business Models Cisco also announced plans to offer flexible consumption models first established with Cisco’s Optics portfolio, followed by the disaggregation of the Cisco IOS-XR software, and now including Cisco Silicon One.

This new model is highly adaptable and offers customers choice of components, white box, or
integrated systems to build their networks. This approach matches the evolving nature of operators
selecting discrete or aggregated technology elements for their buildout and creates new economics of the
Internet to provide significant business value.

About Cisco
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Some of the offerings and features described above remain in varying stages of development and will be
offered on a when-and-if-available basis. Any such items are subject to change at the sole discretion of
Cisco, and Cisco will have no liability for delay in the delivery or failure to deliver any of the offerings or