Cisco Systems, Inc. (CSCO) Earnings Call Transcript & Summary

Hello, everyone. I'm Katie Lindner, facilitator for today's Cisco Knowledge Network webinar. In a moment, I'm going to turn your attention over to our host, Tony Beauford. But before doing so, I have a few housekeeping notes to cover. Should you have questions throughout the session, please ask them in the Q&A panel, and we will reply as quickly as possible. For any technical issues you have, you can send them directly to me in the Q&A panel. This session is being recorded, and you will receive an e-mail with a link to both the recording and the presentation later this week. Also, please take a moment to fill out the survey, which is going to pop up when your session is closed. Your feedback is always important to us. With that, let's go ahead and get started. Tony, you now have the floor.

Good morning, everybody. Thanks for taking the time out of your schedule to join us for this webinar. My name is Tony Beauford, I'm an engineering leader at Cisco. Welcome to our How to Enable a Remote Workforce with Cisco Webinar. Let's really take a -- let's really think about what's happened in the world, and our world has certainly changed. Our world at work has certainly changed. Almost overnight, we had to adapt to our work behaviors and work from the comfort of our homes. And where work flexibility used to be seen as a company benefit, it's now the ability to safely work remotely is now a key part of what we have to do from a business continuity perspective. It is forecasted that at least 5% of the people who are now working from home will never return to the office. And this webinar is about a company's ability to securely connect, collaborate and get stuff done in this new reality. And so we will provide some answers to the foundational requirements to enabling a remote workforce. First, how do you ensure that the employees' experiences meet the employees' expectations? Second, how do you provide access to applications and resources, regardless of the employees location? Third, how do you ensure that the correct policies and controls are in place to provide that secure access? And finally, how do you deliver the financial agility required for business continuity? So now let's get started. I'm going to turn things over to our first speaker, Mike Farrell.

Thank you, Tony. Good morning, everybody. As Tony mentioned, I'm Mike Farrell, I'm a workforce experience and collaboration specialist. I'm going to spend a few minutes talking to you guys today a little bit about the user experience aspect of working from home. And as you guys should know or already know, Cisco has been on a journey to -- towards workplace transformation for some time. And now with COVID hitting us all, it's really expedited that process. So a lot of what you'll see here in my overview, we've been on the journey towards putting in place already, and this is just expediting it for us and for you guys as customers. So with that, let's get started. Just to set it up a little bit. In terms of the size and what this is all about, in 2019, so pre-COVID, there were $1.25 trillion spent on companies trying to digitally transform -- to try to take the digital transformation journey. Again, $1.25 trillion. And you can imagine that, that's going to increase dramatically, and most of that increase is going to be to enable remote working. So again, some context on the marketplace, especially as it relates to the people, and why then if $1.25 trillion is spent, only 16% of those companies saying they see gains. And the main reason is, is we try to fix a lot of things with technology. And in this case, remote workforces, it's really about the people. So we're going to spend a little bit of time talking about how we think we address that approach through the more human-centered approach. So why are people disconnected? Or why do they feel disconnected? Well, it might have to do with the fact that they, on average, use about 34 apps per week. They're globally dispersed. They are on disparate technologies to communicate internally with the company than they are externally with the company. They have different applications they have to use for their particular industry. For example, in the hospital world, they're going to be using something like an Epic. When they're in a sales organization, they might be using Salesforce. So that general frustration has created to the fact that they don't feel like they're really transforming. And so let's spend a little bit of time, before I get into the Cisco kind of value proposition and some of the things we think we're doing uniquely, why does this matter? This is why it matters. Companies that have great employee experiences have 25% more increased profits and they're 2x better at customer satisfaction and innovation. So think about that in a profit context or in a model for a CTO or any CXO for that matter. This is why transformation matters, and this is why you have to have it down to the people level in order to be effective and profitable. As I already mentioned, our platform is Webex. You guys all know Webex. We've been around for years, but we've expanded it dramatically. And I want to spend a few minutes just showing you what we've done and why we think it's a unique value proposition for you guys as customers and partners. So Webex delivers employee-centered experiences for both employees and customers, and this is important because some of the competitors out there really don't deliver both, they deliver one or the other. So it delivers experiences for both employees and customers. And just to give you a couple of the experiences, we could spend a lot of time on this, and I only have 15 minutes approximately. But I want to highlight a couple of things, a day in the life of Webex, that are really unique and really changing the way people work. And again, most of you know us from the meetings part of Webex, but we do have a teams, Webex Teams client, that is all about messaging. So I can message -- and we do every day at Cisco message with our hundreds of partners, supply chain and out there in 101 spaces. It saves dramatically on e-mail, reduce your e-mail dramatically. Everybody hates e-mail, right? One other thing I'll highlight here in the interest of time is we bought a company about a year ago called Voicea who did automatic transcriptions, so we've also embedded that product into Webex so that you can either transcribe meetings, you can transcribe doctors' visits, you can transcribe classes, so things like that, that are getting embedded and adding more intelligence to the overall Webex network make it more and more powerful every month, every quarter. So why is it that we think we're unique? I think this is the biggest reason. We have a single app. Not just -- again, you know us from meetings, the meeting side of Webex, but our Webex Teams app does calling in, it does meetings, of course, it does messaging, desktop control and, most importantly, it's a very open platform, so it will do all types of integrations into the applications that are most important to you guys and that you work in every day. And it's a single platform. So we do not only the app, everything is within one application, we do it on one platform, we do it on-premise, we do it in the cloud. We're adding more and more intelligence into the platform that's going to make it super powerful as we move forward here, and we'll show you a little bit of that today, just a tease of that today. But I encourage you to ask your Cisco account team to understand it even more. All right. A couple of quick things on kind of the employee experience and how we believe we have a human-centered employee experience. I mentioned that we have integrations. One of the things that reduces that business issue of having employees use up to 34 applications on a weekly basis is if you can integrate into that, right? So Webex can either, a, integrate into the application that a user uses every day. For example, if they're an IT employee, they might use ServiceNow. If they're a salesperson, they're going to use salesforce.com. If they're an HR center person, they might use Workday. So we can embed the workloads of Webex into that application, be it click to meetings, click to call or video, and it goes the other way. We do -- even at Cisco, we use, for example, ServiceNow. And when we open an IT ticket, we can create a bot with Webex Teams. So what we're really trying to do is streamline those workflows and enable you to work in those applications and make you most productive, considering your different role within an organization. So very important, it's an open platform. We work both ways. And you'll see some of the major players, their logos highlighted there. Another thing that differentiates us is the fact that we make software with Webex, and we make some world-class end points. And when you combine those 2, it really enables you to have effortlessly move between what we call the virtual and the physical worlds. So whether you're working from home on your laptop, on your mobile phone or on your DX personal end point like I am today, and you head into the office on your mobile, and then you head into -- when you get into the office, you might go to your cube, on your desktop or you might go to a conference and you want a bigger video end point, we move seamlessly across those. And that's unique to Cisco, the fact that we have both the hardware and the software. And if you want to compare it to -- it's a lot like your Apple experience on your iPhone, we have that when it comes to collaboration. And we think it's a unique, very unique aspect of our offering. So again, that's moving between the physical and the virtual worlds. This is just a quick screenshot of an application that a company called Transurban developed with a bot through Webex Teams to make sure their meetings were more efficient. And as you can see, they reduced the average meeting time from 60 to 24 minutes. So just a good quick example of flexibility the platform has to do things once you get creative, and it can make you much more productive. All right. Here, I want to highlight a couple of the experiences that we optimize for IT individuals in particular. And as you can imagine, security is a huge component of that. And then also, what we're doing is we're getting into the -- providing more and more insights, and we'll talk about that as well. So from a security and compliance perspective, a Webex Control Hub is really the cockpit for managing the Webex application in all its different aspects. It's also the area where you're going to get your analytics and your reporting. Webex Pro Pack provides some advanced compliance and security aspects. So that's just an added level of security and compliance. And then the nice thing about Cisco and the other unique thing about Cisco is, with our world-class security offerings, we embed those also in the Webex offer to give you a comprehensive and unbeatable really set of functionality. Hence, the confidence, right, to have security in there as well. And Tony will -- Tony Mason, my colleague, will go into that a little bit more in detail, but we feel like that's a huge strength to be able to offer that end-to-end, secure and compliant approach. So again, Webex Control Hub is the cockpit, Webex Pro Pack adds you additional functionality and security. And then, again, this is overlaid by Cisco's world-class security platform. So that's security and compliance. And the exciting new area that we're getting into more and more, I think this is -- this is happening everywhere, but we're leveraging artificial intelligence and machine learning to provide you as a customer more insights. And we've got 2 examples highlighted here. Obviously, they are small pictures, but we can give you a lot more detail on this. The one on the left is we're getting real-time analytics in a meeting. So you're in a meeting, you've got 100 people working from home, you've got more things to troubleshoot than you know what to do with, this tool will give you individual by individual the experience that person is having, what device they're joining on, what IP address, what type of network, lots and lots of details that are going to make working from home a lot easier for you as an IT person. So that's one. And that, again, intelligence of data is being captured in the Webex cloud. And then on the right is more of a business analytics tool with our end points in conference rooms and in people's homes, we're able to gather a lot more intelligence when it relates to utilizing real estate, utilizing conference rooms most effectively. So just 2 small examples of some of the AI machine learning that's happening because we do have the software and the end points, so we can control that. Much more to come in this area. But just a couple of quick examples for you of where we're headed with what we call collaborative or cognitive collaboration. All right. In summary, COVID has changed the way we work, we all know that. Tony mentioned that at the top of the session here. We can help you develop that business continuity plan when it comes to user experiences with Cisco Webex. Cisco Webex has been around for a long time, and we like to say it, Webex is where governments serve, doctors save, police protect and employees produce. That's kind of the new -- one of the new taglines for Webex. And most important, there's one thing you kind of remember from today's session, employee tools need to be secure, number one, they need to be able to unify workloads and be open enough to do that. They need to be able to reach internal and external parties. I can't tell you how important that is because some -- most -- a lot of tools out there make you log into one tool, log out, log into the other tool. We bridge that gap and can be used for internal and external parties and, of course, we have a global reach. Please reach out to your Cisco account team. I'll put my e-mail and teams address in the chat window, if you guys have questions throughout the rest of the session. The other thing I would encourage you to do is we just fired up a new website called The Future of Work, so futureofwork.webex.com is where you'll see a lot of this content coming out. You can do something that's really cool. You can take an assessment of where your organization is at via a survey, and then we will benchmark you versus others. So some really cool stuff coming out in relation to that. And I will put that web link into the chat window. And the last thing I will say is this week, and this is perfect timing for you guys, we are rolling out a new media campaign around Webex and remote working. And you'll hopefully see that on a station near you. But when the world needs to work, the world works on Webex, our tagline, and we really believe that. So I will wrap up now, if you have questions, hit me in the Q&A panel, and I will turn it over to my esteemed security colleague, Tony Mason.

Thanks, Mike. All right, folks, I want to talk a little bit more about what Mike brought up at the beginning. And really, from a security standpoint, what I want to do is put a little context around what's going on in the security landscape right now. And then we'll talk a little bit about how Cisco can help you and your company to protect yourself during these times and, frankly, going forward in the future regardless of what happens. So just as far as a little bit of context to this, this is really a brave new world. Over the last few months, companies like yours have been scrambling to provide basic connectivity to remote workforces. This COVID situation really flipped the whole community on its head. We had done a good job of securing perimeters. Most of us have done a very good job of securing perimeters, putting in a decent firewall solution, having at least adequate security within the walls of our companies. And as we've moved workforces from premise to home, attackers have definitely been stepping up their efforts to take down companies and do it in very creative ways. We're going to talk about some of the ways they're doing that today and how we can help. But this move is now moved beyond connectivity towards continuity. And one of the things that we're seeing with a lot of companies is that the connectivity was easy to take care of. VPN connections, basic network connections, back to centralized servers or distributed server databases or cloud services. But because of these new threats and what's going on, we see that this shift towards mobile workforce will actually have tremendous implications for the way companies have to deal with security of all sorts for years to come. One of the other things we're seeing is that maybe for the first time, speeds and feeds of security solutions don't matter quite as much as visibility and threat intel. There are a lot of security solutions out there. It's one of the most fractured markets in the world. One of the things that has really become apparent is that speeds and feeds are nice, basic functionality of security solutions are nice, but right now and when it matters, visibility in what's going on and the ability to actually protect real time is way more important than any guide or knobs or anything else that you can have in the product. And really, again, this world has become about protecting businesses, protecting employees and then also protecting the businesses from employees. I want to just note one thing. We actually have ongoing offers with our security solutions. And I threw the link in there. I'm not going to go into those today. We're actually working with you, and we've got extended trial offers of some of our solutions that I'll talk about. So if you're interested in finding out more about those, hit the link, that's a live link, you'll get access to this presentation later. And then call us if you have any questions or need help spinning this up, we can help. All right. Let's talk about some of the trends. I mentioned that we're about protecting businesses, protecting employees and then protecting businesses from their employees. And here's the reason why. Over the last couple of months, we've seen a tremendous increase in the 5 types of attacks here. The biggest concerns to us and to most of you are probably around phishing and social engineering. Humans continue to be the #1 attack vector. And it's just a combination of human nature and the fact that humans have more time at home now and more screen time with less protection than they've ever had before. So when you get a group of anxious people that are working from home that now have screen time and way more screen time than they've ever had, they're probably going to click on things that they shouldn't click on. Also, a lot of the visibility that we have within perimeter security is gone now. And we don't feel like that's going to ever come back the way that it used to. One of the reasons why is because of what Tony Beauford mentioned at the beginning of this, this is a shift that's going to happen long term. I talk to a lot of customers. I've had customers -- I've had over -- actually, conversations with over 100 customers in the last month alone. And each one of these is actually looking at the way that they're going to do business going forward. What's clear is that things changed. We don't even know how things have changed, but they've changed. And because of that, again, humans are now the biggest concern with security. As Mike said, they're pretty much the central concern with security. And even though it's always been the case, tools have to adapt to adapt to these new threats. So again, we're seeing a large uptick in all of these things, but maybe the most concerning to all of us is the lack of visibility that's happened as workflows have shifted to the home and to the cloud. When you look at the business implications of what's going on, security is no longer a nice-to-have. If anything, this crisis has proved that security is a must-have for every organization of any size. Now there are a lot of different ways that you can do security, there's a lot of solutions out there. And one of the things that we can help you do is really rightsize the security solution for your company. And I'll talk about some of the ways that we can do that in a minute. But it's clear that security is no longer a nice-to-have, it's a must-have. Attackers really are getting creative. If I go back to this slide here for a second. One of the things that we're seeing is a large uptick in the amount of creative malware and ransomware that's out there. We're seeing brand-new domains pop up on a daily, hourly basis. In fact, since this has started, Cisco has actually found over 7 million brand-new domains that have tried to pop up, and most of those are just designed to push malware and ransomware into corporate environments through the remote workforce. We're tracking this on a real-time daily basis and actually able to protect things real time. But we're doing that because, again, things are changing. Attackers are getting creative. And we expect this creativity to continue. These crises, of any kind, bring out the best in humanity, they also bring out the worst. And there's a large segment of the population right now that really wants to hasten the end of corporations, change the way that civilization operates, and they are getting very aggressive in the way that they attack companies right now. And most of the time, it's in the attempt to either make money or just to take down a company. People, as I mentioned, are the #1 attack vector, protecting people is paramount. And as I mentioned before, security is no longer about speeds and feeds, it's about risk, reputation and resiliency. And one of the things that I hope that you can take away from this, when you are planning with your company how to actually protect your company, instead of looking at, do we have a fast firewall, do we have a fast solution, start thinking about security in terms of risk to your company and risk to your employees, the reputation to your company if a hack was to occur and how to have a resiliency plan. A resiliency plan is something that we can help with but that also extends into things like cybersecurity insurance and some of the other shifts towards industry-wide resiliency. And we can help you get into many of these conversations at Cisco. The last bullet point is actually important. The workplace has changed. All of these are important, by the way, I didn't mean to seem like -- not to say any of these aren't important. But yes, the last is very important here as a summation. The workplace has changed. It's potentially long term. As I mentioned, I've had conversations with hundreds of customers over these last few months, and none of them are going to go back to doing business the way they used to. Every single one of them has a new plan for remote work. Every single one of them has a new and prolonged plan for letting people back into the office as they can and as they can do it safely. Even Cisco, for example, has a very, very lightweight plan to put people back in the office. And we're taking it -- we're being very careful. That's something that needs to happen right now. We don't know when this is going to end. But we do know that this has changed everything. So again, Cisco can help actually make this change work for your company. I mentioned threat intelligence. And I just want to just talk a little bit about how Cisco can help. There are a few things that I want to highlight here. First of all, Cisco is home to the world's largest private threat intelligence agency out there. It's Cisco Talos. Cisco Talos is a threat research team. We have 300-plus full-time threat researchers, but it's also home to the largest array of sensor data on the planet. We grab the security sensor data not only from our security products, but from a host of other Cisco solutions. And that security data is all centralized and correlated with our Talos threat intelligence team. These threat researchers can then make real-time decisions on what's going on. I mentioned the fact that we're actually looking and tracking -- looking at and tracking millions of new malicious domains. One of the ways that we do that, we have a great solution in Cisco Umbrella. It's an end point and cloud security solution. We are actually able to, again, view global Internet traffic on a daily basis and make real-time decisions on these new domains that are popping up. We've got the ability to help architect and protect against malware. We've got the ability to do things like cloud DDoS mitigation and really help you guys make sure that the connectivity, the basic connectivity is still there, so that your workers can remotely and securely connect to your corporate assets and to cloud services. We've got the ability to actually handle everything from identity management to data center management, DNS, to malware and everything in between. So if you need help with your security posture, Cisco can do it. Right now, again, largest threat intelligence organization on the planet. We've got insight into what is going on in a global daily basis. We're able to update our products within minutes, and we can help you regardless of whether you need help with people security, corporate security, cloud security, data center security or asset security. One of the other things that I wanted to mention here, Mike mentioned the fact that security needs to be baked into all of the different solutions, and you're going to hear that going forward today as well. Security is a central part of everything you do. It doesn't need to be a separate motion anymore. And one of the other ways that I think this is fundamentally changing the world, over these last few months, we have had many blended conversations. For the first time ever, many of our corporations that I deal with are not viewing security as another, another thing to do within the company. They're actually making security a central part of the way that they're solving the people issue, the process issue and the asset issue. And we can actually help make that a reality, because Cisco's baking security into solutions like Webex, because we're actually a security company of our own, and we're sharing this threat intelligence, sharing all of these assets with not only our internal systems and solutions like the ones Mike talked about, but also with you as customers. We've got the ability to actually partner with you to make things easier. And then one of the things that I wanted to bring here is we're also working on platform management. Distributed security management is hard. We understand that. So one of the things that I just wanted to tease here, Cisco Live is coming up in a couple of weeks. And we're going to make an announcement about a solution called SecureX. SecureX will have tremendous implications for the way that you manage security. With it, we're actually including, as part of a Cisco security license, the ability to do security platform management and automation and, again, included as part of the licenses you get from Cisco, no additional costs. And with that, we're actually going to give you the ability to not only see what's going on from a Cisco standpoint, but also look at all the other vendors and solutions you have in your security architecture, bring those into a central location and actually allow you to start automating the response to security events and automating the people side of security. So that's just a tease. Again, SecureX. The formal announcement will come out at Cisco Live in a couple of weeks. It should be a live in the market product by the end of June or early July. So just to sum it up. New threats, lots of new threats, lots of new ways that bad guys are trying to take down companies. Most of these new ways are aimed directly at employees, not at corporate assets like they used to be. And they're actually having great success with phishing and malware and DNS attacks particularly right now. Cisco can help. We really look forward to talking to you about your security posture and helping you guys make sure that -- ensure that you're secure for now and well into the future regardless of what the world looks like. Thanks for your time. And I'm going to turn it over to Bryan now.

Thanks so much, Tony. And great job, Mike and Tony as well. Mike, with the control hub, that was something I'm just learning about as well. So that's really cool stuff. And Tony, as you mentioned, when we start thinking about the way that things have changed, that long-term workspace environment change is definitely something that we're seeing from an industry perspective, even from the data center perspective. So as Tony mentioned, my name is Bryan Hilton. I'm Cisco's Global VDI Technical Solutions Architect, and I work on the worldwide data center team, helping customers basically understand how to navigate a lot of the changes that we're seeing more from a VDI perspective or virtual desktop standpoint. Really, at a high level, very similar messaging to what Mike and Tony alluded to earlier, the workspace has changed. Folks may have gone home on a Tuesday afternoon, fully expecting to go into work Wednesday morning, only to wake up essentially receiving a text message or a phone call or having a voice mail saying to stay home. They probably left their office on Tuesday, fully expecting to go in, not taking the laptop with them, not taking their desktop with them. How do they work moving forward, right? And you think about not only that, but a lot of homes themselves weren't set up for a work-from-home experience. We have our canine friends who you may hear on the call joining in and talking about how the workspace has changed for even our pets. So it's continuing to evolve. And as the dust settles, just like Tony mentioned, folks are possibly continuing to maintain this course. Business continuity didn't plan for 100% work-from-home situation. And now we're having to have those conversations with customers around how to make those changes and how to make it easier for the employee experience. The same goes with higher end users, right? We have your traditional user, we consider what we call knowledge workers from a VDI perspective. They're doing things from an office -- Microsoft Office productivity perspective, they're maybe consuming some web content, using browsers to access data from a CRM or the use case is pretty broad in that scenario. But we also have higher end users that are now working from home as well. They have really robust applications in the CAD and design space, right? And those users are also in a very similar situation. We have your traditional knowledge worker, all the way up to your power user working from home in some very challenging situations. And a lot of the times, you want to consider from the security perspective is the data, right? They're accessing corporate data. And that data typically resides in the customer's data center. When you think about customers taking their devices home, you think about all the potential security implications that could happen in the event of device theft or IP loss from a malware perspective, like Tony was alluding to earlier. There are significant considerations that have to be made on those remote workers from a workforce perspective. And what we've seen is the trend of moving those users into the data center. So basically, having the users, having those virtual machines live within the data center and basically not really caring about the end user device that sits with the user, right? There was a study out, I think it was Deloitte that said something around in the U.S. alone, each household has about 11 connected devices. When you think about that and you think about the work-from-home experience, those users have these devices sitting there that they can easily take advantage of to access those remote resources living in the data center moving forward. A lot of customers are really considering that from a VDI perspective as they consider business continuity with VDI. But how does Cisco approach this from a data center standpoint? If you're familiar, we've had our Unified Computing Systems or UCS platform for a number of years now, going significant success from just a traditional UCS classic perspective all the way up to our converged stack partnerships, like FlashStack, FlexPod, for example, great converged partnerships in that space. We also noticed the trend in the hyperconverged space, customers looking to kind of break down some of those silos and really start to consolidate some of the silos into a single platform, a single software offering and hardware offering. There were some challenges in what we call hyperconvergence 1.0. And a major misstep in the original offerings that were in the space was the network. And so Cisco said, how do we help customers not only address the storage and the compute aspects with hyperconvergence, but also include the network, one of the biggest challenging parts of hyperconvergence, as part of that stack? So we came out with HyperFlex, which is our own software data platform, HyperFlex data platform, living on top of UCS hardware to basically simplify a customer's overall deployment for virtual desktop infrastructure as well as many other workloads. Here today, we're speaking specifically to desktop knowledge worker workflows, for the remote use case with hyperconvergence or a converged stack. But at the end of the day, there are so many different workloads that you can run on HyperFlex. It's a very robust platform that many customers are consuming today just as a simplification of their overall data center deployment. So in response to customers that are facing challenges from a remote worker perspective, we decided that we were going to come out with some bundles, some hyperconverged bundles and converged bundles. These are considered quick ship bundles. So basically, they were preselected components that we knew had a prioritized availability from a GPL perspective. And we look to be able to deliver those and ship those out in about a 2-week time frame and prioritize the health care, education and public sector space that are really those frontline employees that are really having to -- some significant challenges related to the remote worker perspective today. Again, these bundles were designed for anywhere from 500 to 1,000 users with the ability to scale for significant changes in the way that customers consume these bundles. And then we also include 180 days of Cisco Intersight Essentials licensing for customers to take a SaaS-based approach to managing the infrastructure at scale. If you're not familiar with Intersight, it's a very cool SaaS-based architecture to manage UCS and monitor UCS and HyperFlex from the cloud. We can definitely schedule some time to go over that in the future. Definitely something we're seeing a significant uptick as well. But at the end of the day, when we look at those bundles, there's really 3 pillars. We have our HyperFlex All Flash 220 bundle, which is really targeted for a 500-seat knowledge worker scenario. We have our HyperFlex All Flash 240 bundle, which is a little bit more robust. It has about 6 gigs of RAM per user for customers that are running a little bit more on the application side from a VDI perspective. And those start at about 1,000 users. For both of those bundles, we can increment the users at 125 user scale. And we also have brokering bundles as well if you're not currently running VDI today and you need a brokering solution from a VMware Horizon perspective. We can also include that as well as part of an option. And then if you are running converged stack today, we do have our B200 bundle for converged stack options, and those range from anywhere from 500 to 1,000 feet starter bundles as well. One thing that many customers moving into Windows 10, for example, are running into is the need for a graphics accelerator for their VDI experience. A lot of the applications today are really starting to have more demand from a code processing perspective. So we partnered with NVIDIA to support that. We can also add NVIDIA GPUs to support those knowledge workers that need a little bit more power, if you will, from a graphics perspective. Additionally, our BU from a Cisco data center perspective solutions team also validates our design. So basically, if you're looking for the best practices from Cisco, from VMware, from Citrix, and from NVIDIA, basically, we document those. We test those at scale from a various user scale perspective. So we go from anywhere from 500 users to 6,000-plus users for our scalability testing. We use logging VSI to test workloads at scale. So basically, you can see what the infrastructure is going to look like at those various user increments and see what the IOPS, the CP utilization, RAM utilization would be within your environment using that knowledge worker scenario. If you want to take a look at some of the CVDs that we have produced, you can go out to cisco.com/go/vdi-cvd, and that will take you to this design navigator that you see on your screen. By default, there's no filters in place. So basically, all the results will be published over on the right-hand side. You can basically filter based on your VDI deployment that you're looking to move forward with by selecting options over on the left. And as you select those options, the filter on the right will consolidate with the latest bubbled up to the top. So again, I wanted to leave you with a couple of additional resources. Basically, we have a lot of customer case studies in this scenario as well. So if you want to check those out, go view the cisco.com/go/vdi landing page, where we have documented a lot of public case studies in various verticals running VDI on UCS and HyperFlex. If you wanted to look at something more Citrix-specific or VMware-specific, again, we include the links as part of the deliverable for you today. And that's pretty much all I have. We're going to go ahead and change gears and switch it over to George. George, take it away.

Very good. Thank you very much, Bryan. You guys hear me okay?

Yes.

Okay, great. Okay, so for those of you who don't know, Cisco Capital was created like 25 years ago to help our customers leverage our balance sheet to enable customers' investments. And that comes into greater focus today, and it's probably as crucial as it's ever been. The objective of this presentation is to introduce you to a Cisco Capital solution that will help you make these investments that Bryan and the team have been talking about to act now to address potential budget constraints and preserve cash so that you can emerge from this period in a stronger competitive position. So the question we've been wrestling with over the last 3 months is the same one that you and your finance organizations have probably been asking, and that's how are your companies going to continue to operate financially in, at least the short term, given the impact that the pandemic has had on liquidity, in the market, access to capital, demand and the fundamental shifts that we're going to see in our economy? So there we go. So we obviously work very closely with the finance organizations, and we track very closely what the CFOs, et cetera, are saying. And we've been keeping tabs on a really good survey that's being put out by PwC over the last couple of weeks, and I recommend reading it if you get a chance. And in the fifth survey, which was done 1.5 weeks ago, 288 CFOs were surveyed, and there's some interesting data that's on top of mind. So first of all, 58% of all the CFOs are considering pushing back or canceling planned investments, which is down from 70% 2 weeks ago. Second, for the first time, over half of the CFOs expected to take their company at least 3 months to recover once the virus recedes. Third, 2/3 are very confident that their company can create a safe workplace. And interestingly, in a separate survey, employees are not so sure that they feel so safe coming back to work. Fourth, 68% of CFOs say crisis-driven transitions to remote work are going to make their company better in the long run. So we interpret these data points as certainly the length and depth of the pause in economic activity is improving, but there is also a clear understanding that working from home, remote working is a fundamental shift in our economy. So you are all very distinctly well positioned to give consumers who are at home, working remotely, connectivity opportunities for everything, for education, work, entertainment, et cetera. But it's clear that time is the -- time is of the essence right now. So how long? I think that's probably the biggest question. Getting back to business as usual, how long is this going to take? And what we're seeing from these survey results is probably 3 to 6 months is the first semblance of what we believe will be normality in getting back to work. And since PwC began this CFO sentiment survey in mid-March, a majority of the respondents expect it will take their companies more than 3 months to recover once the pandemic recedes, and of which 27% say it will take at least 6 or more months to bounce back, which is up slightly from a couple of weeks ago. So while CFOs continue to push out the time lines for their companies to recover, there's clearly an interim period where investments, et cetera, need to continue to be made. So how is Cisco Capital going to respond? In interim period, we have created the Business Resiliency Program, and this program is available for all of our customers, for all of our hardware, software and services, and it essentially allows you to defer up to 95% of the payments until 2021. So just a little bit more information about how it works. Following a 90-day payment deferral, you were going to pay only 1% of the total contract value each month until the end of the 2020 calendar year. And then beginning in January 2021, the remaining payments will commence, and this could be applied for 36-, 48-, 60-month terms. And we're trying to have all these orders placed by the end of July 2020. So this is the essence of the program. We think this is going to help alleviate some of this financial strain in the short term while you need to make these investments to continue business as usual in light of the fact that access to capital, cash preservation are top of mind for our CFOs. So just how do we engage? Just real briefly, you can take a screenshot of this. You can see here who is covering the territory space in the U.S. We have 5.5 people, if you consider me as well, who can help with getting you access to this program and to put you in touch with the right people to again engage. So that's the end of my presentation. I will now turn it back over to Tony. Thank you.

George, thank you. And I'd like to thank all the presenters, Tony, Bryan, Mike also. So I know we've got a little time -- we've got a little time left. So is there any question that we can answer right now while we've got all of the presenters live? We can certainly have -- just go ahead and pose the question into the Q&A. And we can take a question or 2 right now before we end the webinar. Let's see here. I'm not seeing anything. So with that, since there are no questions, we're going to go ahead and close. So again, I want to say thanks for participating in our webinar. We hope that the discussions were beneficial to you. I think it should be clear that when it comes to remote work, Cisco can help you with your employee experience, secure access and the financial agility for business continuity. We would certainly love to speak with you about your workforce transformation strategy, so please feel free to reach out to your Cisco salesperson to get things started. And with that, thank you, and have a great Tuesday.

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