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UPDATE - FlexPod Passes $3 Billion in Joint Sales for Cisco and NetApp

FlexPod Shipments Growing 81 Percent Annually to More Than 4,100 Customers Across 100 Countries; Cisco and NetApp Align Technology Roadmaps to Accelerate Hybrid Cloud Adoption

SAN JOSE, CA and SUNNYVALE, CA -- (Marketwired) -- 06/25/14 -- Cisco and NetApp (NASDAQ: NTAP) today announced that the FlexPod® integrated infrastructure solution has generated $3 billion in joint sales since its launch in 2010. FlexPod unit shipments have grown 81 percent year-over-year, with demand for FlexPod solutions now reaching a $2 billion annualized demand run rate.

By combining compute, networking and storage into a single system, integrated infrastructure provides the ability to dramatically improve the efficiency and agility of data center infrastructure, while reducing deployment risks. As a result, integrated infrastructure has emerged as one of the fastest growing segments of the IT infrastructure market.

"Our partnership with Cisco on the FlexPod integrated infrastructure redefined how enterprises deployed private cloud infrastructure," said Tom Georgens, Chairman and CEO, NetApp. "As the data center extends to include public cloud services for better economics and infinite scale, NetApp and Cisco are again leading the way, helping customers realize the transformative business benefits of hybrid cloud."

"As CIOs look to simplify IT and focus on delivering business outcomes, there's been a major industry shift toward integrated infrastructure," said John Chambers, Chairman and CEO, Cisco. "In 2010 Cisco and NetApp launched FlexPod to deliver a more efficient, agile data center infrastructure to customers. Together, we're evolving the FlexPod architecture together to help our customers unleash their applications and realize the promise of hybrid cloud environments."

FlexPod Momentum:

  • Worldwide Adoption: FlexPod is deployed with more than 4,100 customers and available in over 100 countries, an increase from 2,300 customers, and 70 countries last year.
  • Channel Acceleration: Critical to the success of FlexPod has been its popularity with channel partners. The FlexPod global reseller ecosystem continues to grow with more than 1,000 channel partners qualified to sell and support Cisco and NetApp technologies. These include 110 FlexPod Premium partners with the specialized skills to sell and support integrated infrastructure.
  • FlexPod Roadmap: As businesses embrace hybrid clouds to rapidly and cost-effectively deliver business-critical applications and services, Cisco and NetApp are aggressively integrating innovative technology into the FlexPod architecture, including Cisco® Application Centric Infrastructure (ACI) and Cisco Intercloud Fabric, along with NetApp's clustered DATA ONTAP, Flash and cloud technologies.
  • Ecosystem Innovation: Technology partners have also contributed to the success of FlexPod, with key companies such as Microsoft, SAP, Oracle, Citrix, F5, BridgeHead Software, Eaton, and Splunk, optimizing applications to run atop a FlexPod integrated infrastructure.
  • Building on Success: Today's news continues to deliver against the three-year plan announced by Cisco and NetApp in January 2013 to align technology roadmaps and address the next-generation cloud-integrated data center design. As part of this initiative, FlexPod will serve as the foundation for a virtualized, multi-tenant, cloud-ready data center.

Customer Momentum
U.S. Accounting Firm Attains 95% Faster Access to Customer Records:
Katz, Sapper and Miller (KSM) is one of the top Certified Public Accountant (CPA) firms in the United States. In the tax and accounting business, maximizing time spent on productive billing is a major priority. With its data footprint growing at roughly 25 percent each year, KSM had outgrown its five-year-old IT infrastructure. FlexPod Premium Partner Logicalis recommended a complete data center reinvention based on a FlexPod platform with VMware® vSphere to vastly improve performance and virtually eliminate downtime. Now, customer records are instantly searchable -- taking less than three seconds to complete instead of two to three hours with the previous systems. It is a 95 percent reduction that has allowed KSM to improve its content management capabilities and deliver better customer service.

"In the tax and accounting business, maximizing time spent on productive billing is essential. Every second or hour of downtime can cost the firm hundreds and thousands of dollars," said Darrell Williams, director of Katz, Sapper & Miller's Information System Department. "Not only were we impressed with the simplicity and performance of FlexPod but the integrated components have been a tremendous asset in helping us centrally manage all of our data center requirements. With FlexPod, delays, downtime and the costs associated with these problems are no longer an issue. Our attention is now on our clients, and not business issues."

City Council Cuts Energy Bill, Improves Capacity by 50%: Salford City Council serves roughly 230,000 citizens from inner city, residential and rural areas of the Greater Manchester region in the northwest of England. The Council houses one of the most advanced data center facilities by public sector standards, yet capacity constraints were beginning to appear. Employees were consuming data in new and different ways and departments were operating independently and deploying their own IT equipment. This fragmentation was leading to security and compliance issues. In response, Salford City Council transitioned their traditional data center to a community cloud based on FlexPod. This has enabled the Council to establish a solid foundation for the delivery of cloud services -- increasing its server capacity by 50 percent and noticeably improving the speed and response of its applications -- while reducing its energy bill by 50 percent to date. Salford City Council has also achieved a five-to-one reduction in data center space requirement, providing the Council with room for additional revenue generating hosting services.

"FlexPod has enabled us to develop a multitenant community cloud platform providing services to the City Council, our partner organizations and SME companies in the local area," said Jonathan Burt, corporate infrastructure architect at Salford City Council. "The validated design built on FlexPod has provided us with a platform to deliver secure Infrastructure as a Service and Software-as-a-Service offerings to different organizations throughout Salford, whilst reducing our internal costs to the City Council and supporting the local economy during significant cuts to our funding."

German Stock Exchange Doubles Business Transactions: Based in Germany, Boerse Stuttgart is Europe's leading stock exchange organization for private investors. Boerse Stuttgart´s main differentiator in the financial market is to execute orders with speed and cost efficiency. Their IT strategy and goals are aligned with these business requirements, with initiatives designed to deliver cost-efficient, reliable and fast service-delivery. With FlexPod, Boerse Stuttgart can now handle twice as many business transactions as before and even unexpected events like massive stock changes can be fulfilled with no influence on the quality of the service-delivery.

"As Europe's leading stock exchange for private investors, it is crucial not only to execute retail orders as fast as possible but in a cost efficient way as well, " said Peter Litschel at Boerse Stuttgart. "A shared infrastructure based on FlexPod enables us to 'bridge-the-cloud' and focus on our core business. With more than one million tradable products we have to process a considerable quantity of trading data. We can now trust that our operation is efficient, fast and flexible. This allows us to focus on providing retail investors with the financial services they need."

See partner comments here: http://media.marketwire.com/attachments/201406/76691_PartnerQuotes_6_25.doc

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About FlexPod
FlexPod is a portfolio of prevalidated, integrated infrastructure solutions that combine the Cisco Unified Computing System™, Cisco Nexus data center switches, and NetApp storage components, managed by Cisco UCS Director with a single console for bare-metal and virtualized workloads. Cisco and NetApp developed FlexPod to meet the demands of business leaders who need to consolidate IT infrastructure, save energy costs, host more applications, and share resources across different departments. The FlexPod portfolio includes FlexPod Datacenter for core enterprise data centers and service providers, FlexPod Express for medium-sized businesses and branch offices, and FlexPod Select for data-intensive workloads. The portfolio is validated with leading hypervisors, operating systems, systems management tools, and cloud management platforms. All FlexPod components are orderable from their respective manufacturers' distribution or resale channel.

About Cisco
Cisco is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. For ongoing news, please go to http://thenetwork.cisco.com.

About NetApp
NetApp creates innovative storage and data management solutions that deliver outstanding cost efficiency and accelerate business breakthroughs. Our commitment to living our core values and consistently being recognized as a great place to work around the world are fundamental to our long-term growth and success, as well as the success of our pathway partners and customers. Discover our passion for helping companies around the world go further, faster at www.netapp.com.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.

NetApp, the NetApp logo, Go further, faster, ExpressPod, FlexPod, and SnapProtect are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. Cisco, Cisco Capital, Cisco Nexus, and Cisco UCS are registered trademarks and Cisco Unified Computing System is a trademark of Cisco Systems, Inc. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.
Forward Looking Statements:

Cisco: This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding the collaboration between Cisco, NetApp and other companies, Cisco remaining strongly committed to the FlexPod portfolio, Cisco continuing to lead the industry in data center, and Cisco and NetApp bringing significant value to mutual customers. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, the ability of the companies to partner successfully, the ability to achieve expected benefits of FlexPod, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco's most recent reports on Form 10-K and 10-Q filed on September 10, 2013 and May 22, 2014, respectively. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.

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