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3 Com Flight To Value

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Flight to Value

Flight to Value

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  • 1. 3Com Flight to Value Higher Performance at Lower Costs
  • 2. 3COM Performance & Value
    • 3Com’s advanced end-to-end networking solutions lead the market in price and performance
    • 3Com solutions provide high performance with an unparalleled ROI:
      • 30%-40% lower acquisition cost than Cisco
      • Industry leading energy efficiency saves up to 70% on energy costs
      • 35% higher performance with new silicon
      • Easy to manage and deploy
      • Lifetime warranty with advanced hardware replacement on all Enterprise Stackable Switches
      • Invested $1B in growing its enterprise business since 2005
      • Committed to partnership with customers
    • 3Com is financially solid (see financial strength slide 8 for more detail)
      • Solid revenue growth both sequential and year over year
      • $541 million in cash
      • Record gross margins in Q1 of FY09
      • More than 5,600 employees worldwide and growing
  • 3. The 3Com Opportunity: “Flight to Value” – the Next Cycle of Network Infrastructure
    • 3Com Confidential
    • Flight to Innovation
    • Flight to Stability
    • Flight to Value
    • 2001
    • 2007
    • Topology Wars
    • Speed Wars
    • Silicon Wars
    • L2/3 Wars
    • Tech Bust
    • Safety First
    • Market Consolidation
    • Vendor Drives Technology
    • Ethernet Everywhere
    • Merchant Silicon
    • Customer Drives Technology
    • GREEN
    • Feature Integration
    • Flexibility
  • 4. 3Com S7910E vs. Cisco Catalyst 6509
    • Cisco Catalyst 6509
    • 720 Gbps Fabric
    • 8 x 10 Gig
    • 48 x 1000 Base-x
    • 144 x 10/100/1000
    • 3Com Switch S7910E
    • Dual 384 Gbps Fabric
    • 8 x 10 Gig
    • 48 x 1000 Base-x
    • 144 x 10/100/1000
  • 5. 3Com SW5500G vs. Cisco 3750G-48 MSRP $15,495 MSRP $9,995 3Com’s SW5500G is the industry’s leading switching solution 3Com Advantage Price 30-40% Lower Price Performance 2-3 Times Switching Performance Differentiation Only Switch in Industry to support Open Applications through OSN Features Complete Feature Set–unique capability to automatically configure phone ports Quality Less than 0.5% return rate–best-in-class
  • 6. 3Com vs. Cisco Average Selling Price (Q308) Source: Dell'Oro's Q308 worldwide switching market share results
    • 3Com managed 10/100 and Gbe stackable—67% less expensive
    • 3Com stackable and modular—51% less expensive
  • 7. 3Com’s Greener Networking Solutions
    • 3Com Confidential
  • 8. 3Com Financial Strength
    • 3Com’s execution of its strategy yielded strong results in Q1 FY09
    • $343M in revenue—exceeding forecast
      • Solid revenue growth—both sequential and year over year
      • Record gross margins—a 9 point year over year increase
    • Recorded 8th consecutive quarter of non-GAAP operating profit
      • $80M GAAP net income
      • 256% year over year increase in non-GAAP net income
    • Strong balance sheet
      • Generated $39M in cash from operations
      • $541M cash balance
    • 3Com is #3 worldwide in stackable switching port market share*
    • Continued price-performance leadership
    *Source: Dell’Oro