Business Value Calculator

Calculate the value of transforming your business.

What is transformation worth to your business?

Calculate the financial impact of transformation over the next five years.
Select the appropriate range for each answer. All values are in US$.
    • < 250
    • 250 - 500
    • 500 - 750
    • > 750

    How many customers do you sell to each year?

    Customers is the number of accounts your company services, not the number of individuals.

    • < $30,000
    • $30,000 - $90,000
    • $90,000 - $150,000
    • > $150,000

    What is the size of your average deal?

    Average deal size is the average total dollar amount of product and/or services you sell to a customer.

    • < 10%
    • 10% - 20%
    • 20% - 30%
    • > 30%

    On average, how much does the size of a typical deal increase each year?

    This increase is the average percentage at which a typical deal grows each year.

    • < 5%
    • 5% - 15%
    • 15% - 25%
    • > 25%

    What is your customer churn rate?

    This is the percentage of existing customers you lose each year.

The calculator will use the average of the range you select.
The sum of the averages must total 100%. All values are in US$.
    • 0%
    • < 20%
    • 20% - 40%
    • 40% - 60%
    • 60% - 80%
    • 80% - 100%
    • 100%

    What is the average percentage of your sales from enterprise agreements/total recurring software contract value?

    This is the percentage of your total sales from software products that provide recurring revenue.

    • 0%
    • < 20%
    • 20% - 40%
    • 40% - 60%
    • 60% - 80%
    • 80% - 100%
    • 100%

    What is the average percentage of your sales from vendor hardware and from non-recurring software and services?

    This is the percentage of total sales from one-time hardware sales and from non-recurring professional or managed services.

    • 0%
    • < 20%
    • 20% - 40%
    • 40% - 60%
    • 60% - 80%
    • 80% - 100%
    • 100%

    What is the average percentage of your sales from non-recurring Partner Professional Services?

    This is the percentage of sales from any of the following:

    • • Partner Implementation Services: your own branded (not Cisco) one-time services to help the customer implement a purchase

    • • Partner Lifecycle Services: your own branded (not Cisco) one-time services to help the customer gain maximum value from a purchase

    • • Software Development: one-time services leveraging Cisco APIs and open platforms for programmability, custom application creation, and integrations for incremental IP revenue potential

    • 0%
    • < 20%
    • 20% - 40%
    • 40% - 60%
    • 60% - 80%
    • 80% - 100%
    • 100%

    What is the average percentage of your sales from recurring Partner Professional and Managed Services?

    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.

The calculator will use the average of the range you select.
All values are in US$.
    • < 10%
    • 10% - 20%
    • 20% - 30%
    • 30% - 40%
    • > 40%

    What is the average gross margin of your sales from enterprise agreements/recurring software contact value?

    Gross margin = Net Revenue – Cost of Goods Sold

    Net Revenue

    The revenue figure in this equation is from recurring software sales.

    • < 10%
    • 10% - 20%
    • 20% - 30%
    • 30% - 40%
    • > 40%

    What is the average gross margin of your sales from vendor hardware and from non-recurring software and services?

    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.

      • < 10%
      • 10% - 20%
      • 20% - 30%
      • 30% - 40%
      • > 40%

      What is the average gross margin of your sales from non-recurring Partner Professional Services?

      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:

      • • Partner Implementation Services: your own branded (not Cisco) one-time services to help the customer implement a purchase

      • • Partner Lifecycle Services: your own branded (not Cisco) one-time services to help the customer gain maximum value from a purchase

      • • Software Development: one-time services leveraging Cisco APIs and open platforms for programmability, custom application creation, and integrations for incremental IP revenue potential

      • < 10%
      • 10% - 20%
      • 20% - 30%
      • 30% - 40%
      • > 40%

      What is the average gross margin of your sales from recurring Partner Professional and Managed Services?

      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.

        • < 10%
        • 10% - 20%
        • 20% - 30%
        • 30% - 40%
        • > 40%

        What is your total operating expense as a percentage of revenue?

        This is total annual operating expense, including any estimated new expenses you will incur to transform your business (e.g., SG&A, R&D).

      Select the transformation approaches that best align with your business.
      1. Accelerate multipartner co-selling through new buying centers.

        Buying 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.

      2. Build a software development and solutions practice.

        Create 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.

      3. Develop your own customer lifecycle practice.

        Help customers realize the value of their technology solutions and accelerate their success while driving your own profitability and growth.

      Summary Yearly
      5-year cumulative revenue

      Cumulative revenue is the sum of

      revenue from years 1 through 5.

      2.6X transformation multiplier

      “With transformation” 5-year cumulative revenue

      “Without transformation” 5-year cumulative revenue

      Without transformation
      With transformation
      The statements made here are directional estimates only. Cisco does not warrant their accuracy, and they are not guarantees or promises of future performance. See Cisco’s Privacy Statement.

      Get insights into your profitability options