Business Value Calculator Results
Grow your revenue 2.6X with transformation
Get insights into your profitability options.
Your 5-year cumulative revenue
2.6X greater revenue with transformation
Without transformation
USD 6,060,362,000
With transformation
USD 15,539,207,000
Yearly transformation breakdown
Hover over chart to see values for each year.
Click on the year to see corresponding values.
Revenue
Gross margin
Operating margin
Transform further to increase your revenue by X
Consider these other transformation options to increase your revenue to
- Invest in reaching new buying centers
- Build a software development and solutions practice
- Develop your own customer lifecycle practice
Your transformation revenue over 5-years
2.6X revenue with further transformation
With transformation
US$ 6,060,362,000
With further transformation
US$ 15,539,207,000
Business Value Calculator Inputs
General overview questions
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How many customers do you sell to each year?
Input: <1,000Help customers realize the value of their technology solutions and accelerate their success while driving your own profitability and growth.
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What is the size of your average deal?
Input: <30,000Average deal size is the average total dollar amount of product and/or services you sell to a customer.
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On average, how much does the size of a typical deal increase each year?
Input: <10%This increase is the average percentage at which a typical deal grows each year.
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What is your customer churn rate?
Input: <5%This is the percentage of existing customers you lose each year.
Sales questions
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What is the average percentage of your sales from enterprise agreements/total recurring software contract value?
Input: 100%Gross margin = Net Revenue – Cost of Goods Sold
Net Revenue
The revenue figure in this equation is from recurring software sales.
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What is the average percentage of your sales from vendor hardware and from non-recurring software and services?
Input: 20-40%Gross margin = Net Revenue – Cost of Goods Sold
Net Revenue
The revenue in this equation is from one-time hardware sales and from non-recurring professional or managed services.
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What is the average percentage of your sales from non-recurring Partner Professional Services?
Input: 60-80%Gross margin = Net Sales Revenue – Cost of Goods Sold
Net Sales Revenue
The revenue in this equation is from one-time Partner Professional Services. Partner Professional Services could include:
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• Partner Implementation Services: your own branded (not Cisco) one-time services to help the customer implement a purchase
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• Partner Lifecycle Services: your own branded (not Cisco) one-time services to help the customer gain maximum value from a purchase
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• Software Development: one-time services leveraging Cisco APIs and open platforms for programmability, custom application creation, and integrations for incremental IP revenue potential
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What is the average percentage of your sales from recurring Partner Professional and Managed Services?
Input: 0%Gross margin = Net Sales Revenue – Cost of Goods Sold
Net Sales Revenue
The revenue in this equation is from recurring professional services and your own branded (not Cisco) managed services.
These services may include ongoing lifecycle services, proactive monitoring and management, troubleshooting, support services, and vendor management.
Margin questions
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What is the average gross margin of your sales from enterprise agreements/recurring software contract value?
Input: 50%This is the percentage of your total sales from software products that provide recurring revenue.
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What is the average gross margin of your sales from vendor hardware and from non-recurring software and services?
Input: 50%This is the percentage of total sales from one-time hardware sales and from non-recurring professional or managed services.
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What is the average gross margin of your sales from non-recurring Partner Professional Services?
Input: 0%This is the percentage of sales from any of the following:
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• Partner Implementation Services: your own branded (not Cisco) one-time services to help the customer implement a purchase
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• Partner Lifecycle Services: your own branded (not Cisco) one-time services to help the customer gain maximum value from a purchase
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• Software Development: one-time services leveraging Cisco APIs and open platforms for programmability, custom application creation, and integrations for incremental IP revenue potential
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What is the average gross margin of your sales from recurring Partner Professional and Managed Services?
Input: 0%This is the percentage of total sales from recurring professional services and your own branded (not Cisco) managed services. These could include ongoing lifecycle services, proactive monitoring and management, troubleshooting, support services, and vendor management.
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What is your total operating expense as a percentage of revenue?
Input: <10%This is total annual operating expense, including any estimated new expenses you will incur to transform your business (e.g., SG&A, R&D).
Your plans to transform
Select the transformation approaches that best align with your business.
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Accelerate multipartner co-selling through new buying centers.
Input: YesBuying centers outside of IT are becoming increasingly integral to the technology decision-making process. Monetize opportunities outside of IT by accessing new buying centers through multipartner co-selling.
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Build a software development and solutions practice.
Input: YesCreate new value and better business outcomes by selling end-to-end solutions and developing with open APIs, which allows third parties to extend the capabilities of Cisco platforms.
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Develop your own customer lifecycle practice.
Input: YesHelp customers realize the value of their technology solutions and accelerate their success while driving your own profitability and growth.
