CISCO SOLUTION INCENTIVE PROGRAM (SIP)

CISCO SOLUTION INCENTIVE PROGRAM (SIP) Program Overview Aug 2005 1

Agenda Cisco Channel Strategy What is the Solution Incentive Program? Program Framework Expectations of the Partner Financial Impact to Partner How to Get Started How to Learn More 2

WW Channel Strategy Business Solutions PARTNER PROFITABILITY Individual Products Integrated Technologies Technology Specialized VALUE-ADD CAPABILITY 3

WW Channel Strategy Business Solutions PARTNER PROFITABILITY Individual Products Integrated Technologies Technology Specialized VALUE-ADD CAPABILITY 4

WW Channel Strategy Business Solutions PARTNER PROFITABILITY Individual Products Integrated Technologies Technology Specialized VALUE-ADD CAPABILITY 5

Why Drive Solution Sales? VALUE-ADD AND BUSINESS RELEVANCE CEO CEO / CIO Vertical Solutions Horizontal Solutions Solutions Business- Centric Business- Centric Department Head Enterprise Architecture Integration Technology- Centric Project Manager Products and Technology Fulfillment Price and Delivery-Centric Provides business relevance to the network Creates budget rather than absorbing it Targets business decision makers who typically control the networking budget Grants partners access to critical vertical and horizontal market opportunities 6

Incentive Programs ADVANCED TECHNOLOGY Value Incentive Program (VIP) Opportunity Incentive Program (OIP) Rewards Solution Incentive Program (SIP) INCREMENTAL OPPORTUNITIES BUSINESS SOLUTIONS 7

Solution Incentive Program Rewards partners that integrate Cisco into their differentiated business solutions Differentiates partner unique value Increases customer intimacy and satisfaction Grows partner revenue with value-added services Drives partner profitability Partners must pre-qualify their solutions prior to receiving the program benefits The program offers eligible partners financial incentives and better engagement opportunities with Cisco sales teams 8

What Is a Solution Under SIP? Solution = Partner Integration Skills (Lifecycle Solution Services) + 3 rd Party Business Application + Cisco Technology Differentiated and Repeatable 9

SIP framework Non Eligible SIP Eligible Converged network Point products 3 rd Party hardware + + Cisco applications Consulting Services A network comprising these elements above the line is eligible for the SIP reward Reference architecture 3 rd Party application Prof. Services A network comprising only these elements below the line is not eligible for SIP reward Maintenance Services = Solutions Integration Network Integration Technology Applications Services Pilot Solutions 10

Cisco Business Solution Positioning Vertical Market Requirement Vertical Market Prepare, Plan, Design, Implement, Operate & Optimize (PPDIO) Reference Architecture 3 rd Party Vendors End Users Cisco Certified Partner ISVs / Ecosystem Partners Business Solution Cisco Capital Advanced Technologies Wireless Security Cisco s s Architecture Customer Advocacy Advanced Technologies IP Comms SAN / Optic Foundation Technologies Routers Switches Cisco 11

SIP Objectives Grow incremental revenue in critical markets Boost partner profitability for resellers integrating Cisco into the solution sale Increase the business relevance of the network Expand the usage/need for network bandwidth Support the channel partner value model 12

SIP Benefits Creates greater intimacy and understanding of business imperatives Adds business value to the network Improves customer satisfaction To Customer To Partner Rewards solution investment Provides differentiation Improves profitability Increases value-add opportunities To Cisco Increases business relevance of networking Creates budget for networks Improves partner profitability Encourages channel focus on value-add 13

PROGRAM FRAMEWORK 14

Program Workflow 1 Pre-qualification (one time per solution) 2 Deal Registration (one per deal) 3 Evaluation (annual review) 15

Program Workflow 1 Pre-qualification (one time per solution) Partner submits Solution Business Plan Channel (CAM) review solution Business Plan Program Council validates solution Business Plan approve Pre-Qualified Partner (evaluated annually) deny REJECT 2 Deal Registration (one per deal) Pre-qualified? yes Field (CAM/AM) validate registration approve Program Mgr validates registration approve Deal Protection (review at 6 months) no deny deny REJECT REJECT REJECT 3 Evaluation (annual review) 17

SIP Prequalification: Partner Pre-requisites Cisco Certified Partner (Gold, Silver, Premier) Specialized in appropriate technology identified as part of the solution definition Has existing installed base of customers in target market Documented Business Plan for driving solution Selling model targets Business Decision Maker Sales team is solution focused Provides unique solution competency 19

SIP Prequalification: Solution Criteria Repeatable Includes Business Relevant Application Includes Solution Support Services Includes Cisco Technology (recommend AT) Expands need for network bandwidth Reference Architecture includes Cisco Cisco product and services is no more than 70% of solution opportunity Two reference accounts that have installed solution within past 12 months Minimum revenue per year (list to Cisco): $200K in SMB or $1M in ENT Minimum deal registration transaction size (list to Cisco): $20K in SMB and $100K in ENT 20

SIP Deal Registration: Requirements Partner solution prequalified for the SIP Registration must be for partner-approved solutions only Partner must be a Cisco Gold, Silver, or Premier Certified Partner Incremental business generated by partner Minimum deal size for Cisco products and services: SMB/Commercial $20K at list price Enterprise $100,000 at list price Partner completes and documents presales milestones: Identify primary decision makers, budget, and timing of opportunity Determine end-customer business issues and requirements Perform end-customer phone and face-to-face sales calls Provide high-level design to customer Registration must be prior to an end customer RFP to be eligible NOTE: Partners CANNOT stack OIP and SIP SIP discount accounts for partner hunting efforts All deal registration based programs protect the first partner to register the deal and complete the pre-sales milestones. If the deal is first registered and approved under SIP, it is not eligible for OIP. If the deal is first registered and approved under OIP, it is not eligible for SIP. 21

Solutions Example HealthCare Retail Vertical Market Connected Real Estate Building Automation Applications Nurse Call Patient Monitoring Location based services Collaborative Care PACS (E-Radiology) IP based Physical security ( access control, video surveillance, fire ) Converge applications that drive collaboration and increase productivity increase in workplace Customer Relationship Management Billing POS Warehouse Management System Cisco Technologies FT Upgrades WLAN + WCS Security IP Communications IP Wireless Phones Call Manager MeetingPlace / VT Advantage WLAN Security IP Communications WLAN IP Communications Manufacturing Supply Chain Management Xtended Markup Language Warehouse Management System WLAN IP Communications Transportation Warehouse Management System Supply Chain Management WLAN IP Communications Logistic/Warehousing Warehouse Management System Employee Resource Planning Supply Chain Management WLAN IP Communications Security 22

APAC SIP Model Run pilot program for 6 month period, effective Q1 FY06 Target countries to include: Australia New Zealand China Korea Taiwan SIP rebate of 4% list, SIP stackable only with VIP* SIP is a backend rebate program India Singapore SIP applicable to all products and must include AT Mandatory maintenance attachment on all products for 1 year minimum (Cisco Shared Support Program or branded resale) *based on current VIP% program rules 23

Expectations of the Partner: Registration Solution Pre-qualification Deliverables Business Plan Reference Architecture Installed Base Deal Registration Deliverables Customer name & contact info for opportunity Opportunity description Cisco products included Estimated budget & decision date Sales Visit Report High Level Design 24

How Do Partners Get Started Visit http://www.cisco.com/asiapac/channels/promotions/sip.shtml Review online program documents (presentation, program rules, Q&A) and download business plan Partners send completed business plan to their CAM and the SIP alias: apac_sip@cisco.com Each partner solution requires a business plan. Partners will receive notification within 10 business days via e- mail. 25

How to Learn More Website: http://www.cisco.com/asiapac/channels/promotions/s ip.shtml Presentation Q&A Program Rules User Guide Business Plan Template Program alias for submitting solution business plan and general questions: apac_sip@cisco.com Submit presales milestone documents to: apac_sip@cisco.com Deal Registration Approval Tool: http://www.cisco.com/go/deals 26