Cisco Launches New Initiatives to Help Channel Partners Succeed.Business Editors/High-Tech Writers CISCO PARTNER SUMMIT LAS VEGAS--(BUSINESS WIRE)--April 17, 2003 Launches New, eAgent Pricing Structure, SMB (1) (Small to Medium-sized Business) Also called "SME" (small to medium-sized enterprise), it refers to companies that are larger than the small office/home office (SOHO), but not huge. Technology Solutions, Channel Leasing Options, Solution Selling Training Courses, Marketing Productivity Tool and Partnering Metric Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Inc.(Nasdaq:CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ), the worldwide leader in networking for the Internet, today introduced several new initiatives as part of its continuing commitment to help Cisco(R) channel partners build sustainable business A business is sustainable if it has adapted its practices for the use of renewable resources and holds itself accountable for the environmental and human rights impacts of its activities. models, driving increased productivity, profitability and return-on-investment. "Channel partner success is my number one concern. With more than ninety percent of our business flowing through the channel, we are committed to their success," said Paul Mountford, vice president Worldwide Channels at Cisco Systems. "At last year's Partner Summit we made some fundamental changes to our engagement philosophy and now we are launching the programs and initiatives that build on that foundation." eAgent Program Adopts "Channel Neutral" Pricing Structure In August 2001, Cisco introduced eAgent, a program that allows enrolled US channel partners to receive compensation for acting as Cisco sales agents. Today, Cisco is enhancing eAgent compensation with a completely "neutral" pricing structure, which means that the more than 100 channel partners currently enrolled in the program will no longer be charged an administrative fee for using eAgent. This revised channel partner compensation coupled with new financing solutions, such net 60 payment terms to end customers available from resale and/or finance and leasing partners, results in significant margin opportunity increase for Cisco channel partners. "We are very excited about the new pricing structure of Cisco's eAgent program," said Jeffrey Hitchman, vice president, Vendor Alliances at NextiraOne, a Cisco Gold Certified Partner. "Our original goal was to derive at least 50-percent of our annual Cisco revenue through eAgent and because of this new pricing structure we are looking to increase that number to 70-percent." Growing with Technology Solutions For SMB To further its commitment in helping channel partners successfully penetrate the SMB market See SMB. , Cisco is announcing new Growing with Technology Solutions, designed to allow SMB customers to experience the value of a full service end-to-end network. The solutions comprise robust modular product lines with the latest technologies and intelligent features, including core network foundation (routing and switching), security, IP communications A general term for networks that use the IP protocol for voice (VoIP) and video traffic. See IP telephony. and mobility. "Channel partners are critical to our success in the SMB market, and we are committed to providing them with the tools, training and resources to build the intelligent network solutions that enable our mutual customers to increase their productivity and accelerate their ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). ," said Peter Alexander, vice president, Commercial Marketing at Cisco Systems. New Comprehensive Channel Financing Options Providing channel partners with innovative, flexible financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. is essential to enabling Cisco to deliver on its commitment to help channel partners build sustainable business models. By enabling Cisco channel partners to offer customers competitive leasing options as well as secure higher and longer-term credit lines, Cisco Systems Capital(R), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Cisco Systems, is providing a key competitive advantage. Cisco Systems Capital offers Cisco channel partners a comprehensive set of long-term leasing options, including IP-Communications, Bundled Services and Demo Lab Equipment as well as short-term leasing options, offered through leading third-party finance or leasing partners, including Distribution, Accounts Receivable Financing Accounts Receivable Financing A type of asset-financing arrangement in which a company uses its receivables - which is money owed by customers - as collateral in a financing agreement. The company receives an amount that is equal to a reduced value of the receivables pledged. and Accounts Receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying Purchase. "Together, Cisco and Cisco Systems Capital provide the channel end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. that can enhance channel liquidity and accelerate product adoption to Cisco end-customers," said David Rogan General Manager, Cisco Systems Capital. Purchasing demonstration lab equipment is one of the largest investments Cisco channel partners must make in order to achieve and maintain their certification and specializations. Therefore, in an effort to help increase the return-on-investment of its channel partners, Cisco in collaboration with Cisco Systems Capital, is implementing a Demo Lab Equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
E-Learning Solution Selling Courses for Channel Partners In today's market environment success is dependent on how well channel partners sell solutions that address each customer's business needs. In an effort to help its channel partners deliver more value and become the trusted business adviser with whom customers want to develop long-term relationships, Cisco launched Sales Training for Exceptional Performance (STEP). This training program teaches channel partners about the fundamentals and principles of selling solutions. The first three STEP courses, Consultative Selling Consultative selling emphasizes customer needs and meeting those needs with solutions combining products and/or services. A consultative salesperson typically provides detailed instruction or advice on which solution best meets these needs. , Selling Value and Territory Management, are available today free of charge via the Partner E-Learning Connection, where since January 2000, Cisco has delivered more than $500 million in free training to its channel partners. Marketing Productivity Tool In an effort to generate awareness and establish a competitive edge, channel partners spend valuable time and resources creating marketing collateral Marketing collateral, in marketing and sales, is the collection of media used to support the sales of a product or service. These sales aids are intended to make the sales effort easier and more effective. , from advertisements to direct mailers. As part of its continuing effort to increase productivity and shorten the sales cycle, Cisco has launched Collateral Builder, a fully automated marketing tool that enables channel partners to easily create customized material, including solution selling campaigns, trade show booth builder, e-mail blasts, and an array of other templates without the associated design costs. "The Collateral Builder tool is especially valuable for creating print and electronic advertising," said Chris Cook
adj. & adv. 1. As shown on a movie, television, or display screen. 2. Within public view; in public. prompts and enter any information that is specific to your company. The Collateral Builder does the rest." Partnering Metric In order to quantify sustainable success, Cisco must be able to effectively measure the return-on-investment for its channel partners based on productivity tools, training, programs and other initiatives. To do this, Cisco has selected to use the ROIC ROIC Return On Invested Capital ROIC Return On Investment Capital ROIC Readout Integrated Circuit ROIC Resident Officer In Charge ROIC Regional Office Implementation Committee (return-on-invested-capital) business success metric. This proven business metric will enable Cisco to quantify the impact its programs and initiatives have on ROIC. The model is applicable to all channel partners regardless of their business model and can be used to measure the impact of a range of initiatives ranging from eAgent to managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality . Channel partners can use the ROIC formula to select the initiatives that will have the maximum benefit on their financial success. In addition, Cisco can use this model to evaluate the financial health of channel partners and make recommendations to what actions will have the most significant ROIC impact. About Cisco Systems Cisco Systems Inc. (Nasdaq:CSCO) is a worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com/. Cisco, Cisco Systems, Cisco Systems Capital, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. or its affiliates in the US 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 of its resellers. |
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