Cisco Announces Formation of Internet Business Solutions Group; Helps Customers and the Industry Accelerate Adoption, Maximize Bottom-Line Benefits of Internet-Based Solutions.

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 15, 1998--Cisco Systems, Inc. today announced the company has formed a new organization -- the Internet Business Solutions Group (IBSG).

IBSG was established as a direct result of customers requesting Cisco to not only share its networking infrastructure expertise, but also its own experiences at deploying Internet-powered solutions.

Empowering The Industry and Transferring Knowledge

Cisco is aware that deploying and managing Internet-based solutions requires changes in business processes and may require assistance not only from Cisco, but also from application vendors and system integration consulting firms. Cisco has thus instituted an IBSG Knowledge Transfer program to enable multiple vendors to assist in implementing web-based solutions for customers.

Early participants of the pilot program include leading consulting firms Cambridge Technology Partners, Ernst & Young and KPMG. Through the IBSG Knowledge Transfer program, Cisco is sharing best practices with these companies about its own Internet-based business methodologies and applications. In turn, these companies have selected Cisco as their strategic networking vendor in deploying Internet business solutions and are incorporating Cisco methodologies into their own consulting practice groups and services offerings.

"To be successful in today's fiercely competitive marketplace, businesses need an edge," stated Chief Information Officer Peter Solvik. "At Cisco, Internet-based business applications continue to provide that competitive edge and we are committed to assisting our customers do the same."

IBSG, which is headquartered in San Jose, is comprised of IT professionals and vertically-focused industry experts led by Vice President Sue Bostrom. The group reports directly to CIO Pete Solvik. Cisco is working with customers and third parties to help them understand and maximize the value that Internet-based business practices and applications can bring to their organization. Today's announcement is a reflection of the company's continued commitment and ongoing plans to ensure customer success in the Internet Economy.

"There is no longer any doubt that Ecommerce is a viable and necessary way of conducting business," said Kathryn Dzubeck, Executive Vice President of Communication Network Architects, Inc., an industry analyst firm in Washington, D.C. "Every corporation must look for the means of integrating this business reality into its basic IT infrastructure. Accomplishing this using proven models, such as the business practices by Cisco, tailored to the specific business needs of the organization, must be the goal of every corporate executive," she said.

IBSG's Internet Business Initiatives

The IBSG is using several techniques to bring its wealth of Internet experiences in developing and deploying Internet solutions to customers (such as Tandy, Texas Instruments and Xerox, to name a few), developers and consultants. Methods include face-to-face customer advisory sessions, multivendor-sponsored seminar series, and training sessions on Internet-powered solution frameworks. The frameworks include detailed case studies, white papers, reference network architectures, and recommended best practices for implementing Internet-based applications in areas such as employee services, Internet commerce, customer care, and supply chain management.

"Cisco is a great example of an Internet-based company," said Sue Bostrom, Vice President of IBSG. "By tightly aligning IT with everyday business activities and especially strategic customer-focused initiatives, Cisco has been able to achieve over $500 million in financial contribution through gross margin increase and expense reduction which is now being invested in critical areas such as research and development. Overall, Internet-based applications have enabled us to dramatically increase revenue and greatly improve customer satisfaction, employee productivity, and supplier relationships. The Internet Business Solutions Group was formed to help customers reap similar benefits in their businesses," she said.

Additional announcements will be forthcoming in early 1999.

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 IOS, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.