Agencies Still in Early Planning for Newest Internet Protocol, Federal Survey Shows; Planning, Implementation Still In-House, Budgets the Major Deterrent.

HERNDON, Va. -- An independent, commissioned survey of federal decision makers released today indicates that, despite federal government mandates for rapid implementation and a continuing industry dialogue focused on global competitiveness benefits, less than 4 percent have completed Internet Protocol Version 6, or IPv6, implementation and less than 8 percent have completed agency transition plans. Budget constraints are cited as the biggest impediment, and most agency decision makers are choosing to conduct planning in-house, without outside vendor or consultant support.

Although 14 percent of the respondents to the survey, released by Cisco Systems, Inc. (NASDAQ:CSCO), indicate that agency implementation is already under way, the largest number of respondents indicate that they will complete their implementation by the end of FY 2007. However, 26 percent state that they have not yet targeted a final date. Almost 38 percent will complete planning by FY 2007.

The survey was conducted last month by Market Connections, a federal IT market research firm. The research effort was conducted by phone and targeted IT and business decision makers in both civilian and military agencies (For more information, see http://www.cisco.com/web/strategy/government/agencies.html).

The survey indicates a range of reasons for slow adoption. Topping the list are the lack of approved or identified funding, of a dedicated staff person focused on IPv6, of an identification of key business benefits, or of an transition plan. Even though budget constraints are the biggest issue, the survey clearly demonstrates that IPv6 implementation is viewed as a technology issue, not as a driver of business benefits.

Although planning is occurring mainly in-house, agency decision makers are slightly more open to looking to outside vendors, partners or consultants for implementation support. The most important services sought by agencies include help with addressing funding, providing a systems-wide view, offering risk-management tools, and offering training and support.

"IPv6 is still very much viewed as an IT issue," said Aaron Heffron, vice president of Market Connections. "Agencies are turning to their internal IT staff to do the planning and much of the implementation -- the same IT staff that is supporting several other initiatives and performing day-to-day support and maintenance."

"This survey shows that the strong business case for early and rapid implementation has yet to be successfully made," said Gerald Charles Jr. executive advisor, Cisco Internet Business Solutions Group. "The market focus needs to move from cost and technology issues, to business benefits and applications. Private and public sector leaders in the federal market need to drive a wider understanding of national economic issues versus the implementation challenges and take the dialogue beyond funding into the core issues of productivity, the evolution of applications to internet-based services, and our increasingly mobile and virtualized society."

Additional survey findings include:

--Not surprisingly, there is a difference between IT and business viewpoints: IT decision makers cite privacy and security, quality of service and network performance as top concerns; business decision makers are most focused on continuity of operations, productivity and citizen satisfaction.

--Security is cited as the top benefit of IPv6 implementation.

--Even in times of escalating fuel costs, teleworking is not seen as a significant concern. Neither is global competitiveness.

--More than 43 percent indicate that they have already conducted an inventory of existing devices to assess readiness for conversion, topping the list of steps taken toward implementation.

--To physically meet implementation goals, more than 51 percent say they are implementing all the way to each desk top.

--More than 53 percent say they are likely or somewhat likely to consider IPv6 if it were not mandatory.

--When asked to name the one company most associated with IPv6, Cisco is named most often (73 percent, vs. the next vendor at 12.5 percent), and is mentioned seven times as often as the next vendor as the company considered a leader in IPv6 planning and implementation.

"This survey indicates that agencies must focus more on how IPv6 implementation will support the fulfillment of their mission, underlining productivity and long-term cost management benefits," said Bruce Klein, Cisco federal segment vice president. "Focusing on the 'big picture' benefits means that IPv6 should be driven from the top down, versus from the bottom up. As every asset -- whether a person or an object -- becomes connected, agency heads are beginning to understand and appreciate the vast opportunities for mission efficiencies, as we move from wired to wireless, from multiple, siloed networks (voice, video, data, emergency response, etc.) to converged, media-rich messaging, and from phone and mail transactions to mobile applications and interactions."

About the Survey

In May 2006, Market Connections, Inc. conducted a telephone-based survey of 200 IT decision makers in civilian and defense agencies. The respondents were selected randomly and represent a mix of IT and business decision makers. Market Connections, Inc. is a full-service market research company specializing in meeting the research needs of those marketing and selling to federal, state and local governments.

This survey is one of a series of thought leadership surveys of federal decision makers conducted by Market Connections on behalf of Cisco. The most recent survey conducted in late 2005 looked at key trends in federal information security.

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com.

Cisco, Cisco Systems and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document 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. This document is Cisco Public Information.