Cisco Helps Channel Partners Navigate the Challenging Economy
and Prepare for Future Growth
BOSTON – Cisco Partner Summit – June 2, 2009 – Today at its global partner conference, Cisco announced an ambitious series of initiatives designed to help its global channel community navigate the challenging economic environment while preparing for the inevitable upturn. These initiatives include an extension of Cisco’s channel partner financing, the expansion of its managed services channel program, and the evolution of its flagship partner profitability program.
The Cisco® Navigate to Accelerate initiative establishes a holistic framework to help channel partners improve their business in four key areas: obtaining sufficient financing, generating new business from existing customers, meeting the changing needs of customers, and preparing for future growth.
Cisco continues to aggressively invest in Navigate to Accelerate programs to help its channel partners adapt and succeed amid economic uncertainty.
Highlights / Key Facts:
Global Finance Offers Help Partners Manage Cash Flow
- Cisco is investing in partner financing to improve the profitability of its partner community during the economic downturn.
- Cisco is offering a 6-month financing stimulus package moving partners participating in extended terms financing from 60 to 90-day terms.
- Cisco will continue to expand its channel financing program to include more partners around the world, and expansion efforts will be primarily focused in APAC and Europe.
- Cisco channel financing is offered in over 140 countries; double any other IT vendors.
- In a time when others are tightening credit, Cisco has provided the credit support to drive an additional $2B of sales since October.
- Historically, channel partners leveraging extended terms financing have grown their sales 20 percent.
Simplifying and Expanding Cisco Managed Services Channel Program
- To help reward and support managed services providers, Cisco has launched the next generation of its Managed Services Channel Program (MSCP).
- Industry analysts are predicting that the current macro-economic environment is creating the perfect opportunity for managed services, as customers actively look to shift spending from capital expenditures to operational expenses.
- According to Ovum Research, managed services is a $42 billion worldwide market opportunity and is growing 19 percent annually.
- In the most recent annual survey of businesses by Nemertes Research, 63 percent of businesses expect to adopt some level of managed services in 2009.
- To allow more partners to participate in the program, MSCP enables partner-to-partner collaboration through a “white label” arrangement that allows two partners to work together to deliver a managed service using one network operations center.
- To maximize partner profitability, Cisco is now extending incentive and promotion eligibility within MSCP. Today, Cisco’s existing Technology Migration Program is included under MSCP, and the Solution Incentive Program and Opportunity Incentive Program will be added by end of calendar year 2009.
Evolution of Cisco Value Incentive Program
- Cisco is evolving its industry-leading Value Incentive Program (VIP) to motivate its channel partners to invest in architectural capabilities around collaboration, virtualization and borderless networks.
- Cisco’s VIP was originally introduced in 2003 to enable partners to profitably build up their advanced technology practices, including those for unified communications, security, wireless and data center.
- Cisco has invested $2.5 billion in partners through VIP rebates since the program inception in 2003.
- For the first time, VIP will reward channel partners for selling routing, switching and emerging technologies, such as Cisco TelePresence™, into one of the architectural plays: collaboration, virtualization and borderless networks.
- The first manifestation of Cisco’s architectural plays will be the Smart Business Architecture for Mid-sized Networks. The architecture, for businesses with 250 to 1,000 employees, provides prescriptive network design and deployment best practices, and it specifies a process that helps partners gain greater profitability while delivering a superior end-user experience. The Smart Business Architecture for Mid-sized Networks includes switching, routing, wireless, unified communications, wide area networking optimization, security, and network management technologies.
Keith Goodwin, senior vice president, Worldwide Channels, Cisco: “As Cisco aggressively moves into adjacent markets during this economic downturn, our channel partners have never been more important to our success. With our financial strength, Cisco is uniquely positioned to invest in the health of our channel partner community.”
Edison Peres, senior vice president, Go-to-Market Group, Worldwide Channels, Cisco: “Cisco is actively working with our partners to navigate the current economic challenges while investing for future growth. As partners look for help to navigate the challenging economic environment, we continue to expand our channel financing program and open up the program for more partners to participate. To prepare partners to ‘accelerate’ during the imminent economic upturn, we have made important announcements to invest in our partners’ long-term viability and growth. Evolving our Value Incentive Program and unveiling our next generation MSCP will help partners capture market transitions and increase profitability.”
- Final details on VIP enhancements will coincide with the rollout of VIP 14 in the beginning of FY10 (August 2009)
- Cisco will have a 90-day transition to the new MSCP structure as tools and processes are updated. Cisco will begin accepting applications under the new rules on Aug. 31.
Cisco (Nasdaq: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at www.cisco.com for ongoing news, please go to http://newsroom.cisco.com
Cisco, the Cisco logo, Cisco Systems, Cisco TelePresence, Cisco WebEx and WebEx 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.
Tel: +30 2106381457