Grow Your Services Business
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1 Grow Your Services Business
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3 Cisco Services Channel Program One Experience. Expanding Opportunities. Expand Your Services Practice More Profitably Together with Cisco Our customers face tough business and technical challenges every day, and they depend on their networks for critical IT and communications support. Their service needs are growing fast, and your services business must evolve to keep pace. That s why Cisco is changing the way we work with our partners to develop and deliver services. Today you manage a complex set of program requirements, with varying metrics and rewards across multiple Cisco Services offerings. Growth and profitability are significant concerns as you confront increasingly commoditized markets. You are looking for ways to increase your profitability with innovative service offerings, because selling products alone is just not enough. Our solution is a new, value-based approach for you to develop, sell, and deliver services together with Cisco. It separates the program elements from the services we offer, giving you a streamlined and consistent experience with a clear investment path. The structure of the new services program is also tightly aligned and integrated with the Cisco Channel Partner Program, so you can increase your revenue potential and receive predictable rewards as you sell Cisco products. Get ready for the Cisco Services Channel Program one unified experience, with expanding opportunities. To help you expand your services practice for more profitable business growth, we are introducing a services channel program that lets you easily match service offerings to your business model and investment strategy. We want to make it easier for you to work closely and collaboratively with us, giving you more opportunities to merge your own unique service offerings with the power of Cisco Services. In addition, we seek to build on the product proficiencies that you ve achieved through your investment in Cisco certifications and specializations, as well as to find ways to increase your profits in proportion to your efforts. 1
4 The Cisco Services Channel Program To increase your profitability as you address your customers growing service needs, you ll need to grow revenue, differentiate services, and lower operating costs. The Cisco Services Channel Program is designed to support your success in all of these areas as you develop, sell, and deliver services together with Cisco. In doing so, the program will empower you to expand your services practice more profitably by rewarding your total business relationship with Cisco. The new program emphasizes a streamlined approach to all of its elements, with one experience that will bring you: A unified product and services experience: Your existing investments in Cisco certifications and specializations provides the foundation that will give you access to an array of services. Alignment across Cisco channel programs will also facilitate more solution-oriented offers for even greater customer satisfaction. A single services program framework: A new framework streamlines sales administration to help reduce overhead costs and speed account reconciliation. Program management is not only simpler and less costly, but also more efficient, to enhance your profit potential. You ll realize expanding opportunities across sales, delivery, and rewards through: Access to a portfolio of smart and traditional services: The Cisco Services Channel Program gives you more choices, so you can better match your business model and investment strategies with customer needs to promote greater profitability. The new program expands the revenue options for eligible partners, providing access to a comprehensive portfolio of services. This portfolio will offer more flexible alternatives than ever before, to help you develop, sell, and deliver services together with Cisco. Performance-based rewards: The new program will improve the competitiveness and profitability of top-performing partners by offering new performance-based rewards. Your performance will be calculated quarterly instead of annually to give you more frequent financial opportunities. In addition to discounts, we have included a rebate component to promote healthier gross margins. Global consistency: A global services strategy for program eligibility, discounts, and rewards will help you sell multi-country service solutions more easily. A globally viable business strategy can help accelerate your service growth and profitability, no matter where your business and customers are located. A common eligibility and rewards structure: Predictable discounts and performance-based rewards will offer a more clearly defined investment path for profitable growth. With a consistent eligibility approach, you ll be able to more strategically plan because you ll understand the qualifications necessary to gain access to the various service offers. You ll also be able to stretch your budget by eliminating financial outlays for service assets in areas where Cisco is already investing. Instead, you can build on Cisco s innovation and focus the majority of your efforts on differentiating your services. 2
5 A Comprehensive Partner Services Portfolio for a Greater Return on Investment Your existing certifications, specializations, and audits will give you access to a comprehensive portfolio of smart and traditional offerings across the Cisco Services lifecycle, so you can expand your sales and increase your opportunities to earn higher margins. The new services will also give you more options to develop, sell, and deliver services based on your business model, investment strategies, and customer needs. Figure 1 Cisco Services Families Cisco Services Channel Program Program Eligibility Rewards Incentives Terms and Conditions Collaborative Services Cisco Brand Services Partner Basic Support Services Next Generation Services Portfolio for Partners 3
6 Cisco Collaborative Services Figure 2 Examples of Partner Services with Collaborative Services at the Core Integrate with Existing Contract Management Help Desk 8 x 5 Help Desk 24 x 7 Security Alerts VoIP Audit & Reporting IT Maintenance (incl. 3 rd Party) ITIL Compliance Audit Global Logistics Infrastructure & Web 2.0 To ols Core Assessments Monitoring To ols Onsite Services Security Assessments EOL Notices Disaster Recovery Service Prepaid Consultancy Quarterly Account Renewal Reports Monthly Account Renewal Reports Collaborative Services (CS) Capabilities Partner Services Combined with CS for Complete Solution You understand your customers better than anyone else and have positioned yourself to offer them unique value. Cisco offers a global support infrastructure, an extensive knowledge base, and a smart service architecture to assist you in supporting your customer base. In an unprecedented channel approach, the next generation of Cisco Collaborative Services will bring together the distinctive value provided by our partners and Cisco into complete solutions tailored to each customer. every facet of your customer relationships, just as you always have. You will create services based on your understanding of the customer s business needs, using your technology expertise. You will also name the service and sell it under your own company name and logo, using the Cisco brand as an ingredient within your offering to enhance your marketing efforts (Figure 2). We ll help you gain greater visibility into your customer s network and provide proven methodologies and recommendations for planning and support. Our exclusive smart service capabilities which systematically correlate customer network data with our dynamic knowledge database and automate processes will give you the tools to more proactively and predictably provide the assurance your customers demand. In addition, we ll support your service delivery through a reliable and efficient global services infrastructure. Your customers will get the best of both worlds and so will you. The new Cisco Collaborative Services family, available to eligible Cisco partners, can help you develop unique, best-in-class services and deliver a smart, personalized experience to your customers. You will own and manage 4
7 Cisco Brand Services The Cisco Brand Services family will give you a complete, ready-for-resale service model that can extend your technology expertise and speed your time to market. Cisco Brand Services are complete service offerings that you can resell to customers without the expense of adding to your own services infrastructure. You continue to manage the customer relationship while using the Cisco brand and award-winning delivery model. When a network problem is affecting business-critical systems, customers demand fast access to technology experts with experience in diagnosing the toughest problems. Cisco Brand Services will give customer s access to the Cisco Technical Assistance Center (TAC), staffed by Cisco professionals certified in a broad range of Cisco foundational and advanced technologies. The Cisco TAC is available around the clock and across the globe, with support offered in local languages. When your customers need dependable, fast access to business-critical parts, Cisco Brand Services delivers. Your customers will be able to choose from a variety of hardware replacement options, including premium options such as 2-hour and 4-hour replacement, where available, and onsite parts replacement and installation. They can select the coverage they need on a productby-product basis across the entire services lifecycle to get the flexible services they require. 5
8 Cisco Partner Basic Support Services This family includes traditional technical support services for eligible partners who sell their own brand of support on a product-by-product basis. The Partner Basic Support Services family is intended to help partners transition to the new Cisco Services Channel Program and, subject to eligibility, gain access to the complete services portfolio for partners. 6
9 Measurable Benefits The Cisco Services Channel Program will offer a new services approach that we believe will provide the best opportunity for you to succeed as you address changing customer needs and meet increasing customer demand. The goal of the Cisco Services Channel Program is to help you grow your services practice more profitably by recognizing and rewarding the investment you have made in the Cisco portion of your business. The new program will build on every aspect of your relationship with Cisco, bringing you a wide range of benefits that encompass financial rewards, business growth, operational efficiency, and customer satisfaction. We also understand that customer retention is vital. The Cisco Services Channel Program will help you build customer loyalty by differentiating your offerings, and giving you flexible options to meet your individual customer needs. We ll also help you accurately target the right customers for each type of solution and service experience. And, we ll support you in your strategic role of helping customers adapt to new business models and solutions that promote productivity and cost reduction. By combining your strategic investments in technology, services infrastructure, and partnerships with Cisco expertise, partner enablement resources, and service innovation you can more easily support today s everchanging IT environments. Table 1 Benefits of the Cisco Services Channel Program Financial rewards Business growth Operational efficiency Customer satisfaction Increase the return on your Cisco investment by earning rewards based on your performance Increase your revenue potential by gaining access to a comprehensive portfolio of smart and traditional services that match partner business models Gain the opportunity to receive greater rewards predictably and with greater frequency More easily and expediently expand the capabilities and market reach of your services practice Sell new and innovative, high-value services by gaining access to Cisco intellectual capital, smart service innovation, and global infrastructure for use inside your service offerings Sell multi-country service solutions with improved global consistency Gain greater competitive differentiation with a program that recognizes your expertise and helps you target new business opportunities Extend your brand into new markets and strengthen your current position by tapping into significant marketing investments made by Cisco Accelerate profitable growth with a clear investment path A single contract and globally consistent program requirements Streamline your program administration A common eligibility and rewards structure defines a clear investment path and predictable revenue An overall process that empowers you to align your services business models with Cisco Services content and capabilities Present a unified approach for products and services by selling a full solution that helps customers plan, build, and run customer networks Consistently provide an excellent service experience with more flexible partner access to worldwide service offerings and enablement tools 7
10 A Common Eligibility Structure for a Clearly Defined Investment Path Consistency is an important aspect of the Cisco Services Channel Program. Consistent eligibility will reduce the administrative costs of tracking multiple eligibility scenarios and will help you target sales areas with the greatest profit potential. Services families and offers with specific eligibility requirements will integrate and align with the Cisco Channel Partner Program, so that you can take advantage of the breadth and depth of your investments with Cisco and more clearly define your investment path. The breadth of your investment is defined by the certifications you have earned. It measures your services capabilities across multiple technologies and service delivery tools, as well as your process and infrastructure across the range of lifecycle services. The depth of your investment is defined by your specializations and by your focus on strong service delivery in specific technologies such as routing and switching or unified communications. Entry-level breadth and depth requirements may vary by service offer within a services family and by geographic region. Additionally, there may be audit requirements for specific services families, such as Cisco Collaborative Services. 8
11 Rewarding Performance The days of structuring your business operations based on a geographic area to take advantage of diverse, rewards-based programs are over. Instead of regional variations and program-specific eligibility, discounts, and rewards that increase pricing complexity and make it hard to determine what you can earn on any one deal, the Cisco Services Channel Program will have a globally consistent performance management strategy. Your performance and service capabilities will determine your compensation in the form of a predictable, consistent discount strategy combined with greater rebate opportunities. Over-performance will earn you higher rewards the more you exceed performance targets, the higher your rebates. All partners will be measured on their overall sales and delivery performance and may be eligible to earn rewards in the form of rebates for meeting or exceeding specific performance thresholds. We know that you provide incremental value when you not only deliver services bookings, but also deliver those bookings with a high standard of excellence. The Cisco Services Channel Program will recognize that excellence and reward you for it, because you are building customer loyalty and helping us reap long-term benefits. Ongoing performance is critically important to creating a best-in-class service experience for customers. Your performance will be a significant factor in your overall compensation, and we ll measure and pay against this performance as it occurs. Partners who meet or exceed metrics expectations will be rewarded with continued access to service offers and financial compensation; those that do not will be provided with Cisco support to address shortcomings. 9
12 Making the Transition Cisco will manage partner transitions to the Cisco Services Channel Program through a phased approach based on geographic theater. You must transition to the program and services offers before the current Cisco Services programs reach their end-of-sale (EOS) dates in order to be able to continue to sell Cisco Services. Additional information about the transition strategy will be communicated as it becomes available on Cisco Services Channel Program website at: Getting Started Get ready to grow your services practice more profitably with a unified experience across products and services that will expand your opportunities with every customer. The Cisco Services Channel Program will help you develop a closer, more collaborative business relationship with Cisco that rewards you for your total Cisco investment. This program is an important development in the way we work together to meet our mutual customers growing service needs. The Cisco Services Channel Program will be available in 2010, and will continue to evolve as new services families and offers are developed. 10
13 Your Future: Together With Cisco Regardless of your current theater of operations and involvement with legacy services programs, the Cisco Services Channel Program will accommodate your current Cisco investments. We look forward to helping you build a more profitable services practice together with Cisco. For More Information For more information, please visit the following sites: Cisco Services Channel Program Cisco Collaborative Services 11
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