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1© 2005 Cisco Systems, Inc. All rights reserved.
CISCO SOLUTION INCENTIVE PROGRAM (SIP)
Program Overview
Aug 2005
222© 2005 Cisco Systems, Inc. All rights reserved.
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
333© 2005 Cisco Systems, Inc. All rights reserved.
WW Channel Strategy
VALUE-ADD CAPABILITY
Individual Products
Technology Specialized
Integrated Technologies
Business Solutions
PA
RT
NE
R P
RO
FIT
AB
ILIT
Y
444© 2005 Cisco Systems, Inc. All rights reserved.
WW Channel Strategy
VALUE-ADD CAPABILITY
Individual Products
Technology Specialized
Integrated Technologies
Business Solutions
PA
RT
NE
R P
RO
FIT
AB
ILIT
Y
555© 2005 Cisco Systems, Inc. All rights reserved.
WW Channel Strategy
VALUE-ADD CAPABILITY
Individual Products
Technology Specialized
Integrated Technologies
Business Solutions
PA
RT
NE
R P
RO
FIT
AB
ILIT
Y
666© 2005 Cisco Systems, Inc. All rights reserved.
Why Drive Solution Sales?
Solutio
ns
Business-Centric
Business-Centric
FulfillmentFulfillment Price andPrice and
DeliveryDelivery--CentricCentric
IntegrationIntegration
Project Project
ManagerManager
Products and Products and
TechnologyTechnology
CEOVertical Solutions
CEO / CIO
Horizontal Solutions
Department Department
HeadHead
Enterprise Enterprise
ArchitectureArchitectureTechnologyTechnology--
CentricCentric
VALUE-ADD ANDBUSINESS RELEVANCE
� 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
777© 2005 Cisco Systems, Inc. All rights reserved.
Incentive Programs
BUSINESS SOLUTIONS
INCREMENTAL OPPORTUNITIES
ADVANCEDTECHNOLOGY
Rewards
Value IncentiveProgram (VIP)
OpportunityIncentive
Program (OIP)
SolutionIncentive Program (SIP)
888© 2005 Cisco Systems, Inc. All rights reserved.
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
999© 2005 Cisco Systems, Inc. All rights reserved.
What Is a Solution Under SIP ?
Solution=
Partner Integration Skills(Lifecycle Solution Services)
+ 3rd Party Business Application
+ Cisco Technology
Differentiated and Repeatable
101010© 2005 Cisco Systems, Inc. All rights reserved.
SIP framework
Technology Applications Services Pilot Solutions
+ +
Referencearchitecture
Pointproducts
3rd Partyapplication
MaintenanceServices
ConsultingServices
No
n E
lig
ible
SIP
Elig
ible
Ciscoapplications
Prof.Services
=
NetworkIntegration����
3rd Partyhardware
����
Convergednetwork
SolutionsIntegration
A network comprising only these elementsbelow the line is not eligible for SIP reward
A network comprising these elementsabove the line is eligible for the SIP reward
111111© 2005 Cisco Systems, Inc. All rights reserved.
Cisco Business Solution Positioning
Ve
rtic
al
Ma
rke
t R
eq
uir
em
en
t
Prepare, Plan, Design, Implement, Operate & Optimize
(PPDIO)
Customer AdvocacyCustomer Advocacy
CiscoCisco’’s Architectures Architecture
WirelessWireless SecuritySecuritySAN /SAN /OpticOptic
RoutersRoutersIP IP
CommsCommsSwitchesSwitches
Advanced Advanced TechnologiesTechnologies
Advanced Advanced TechnologiesTechnologies
FoundationFoundationTechnologiesTechnologies
End Users
Cisco Certified Partner
ISVs / Ecosystem
Partners
Cisco
Cis
co
Ca
pita
l
Bu
sin
ess
So
luti
on
Vertical Market
3rd Party Vendors
Reference Architecture
121212© 2005 Cisco Systems, Inc. All rights reserved.
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
131313© 2005 Cisco Systems, Inc. All rights reserved.
SIP Benefits
To Partner
To Customer
To Cisco
Creates greater intimacy and understanding of business imperativesAdds business value to the networkImproves customer satisfaction
Increases business relevance of networkingCreates budget for networksImproves partner profitabilityEncourages channel focus on value-add
Rewards solution investmentProvides differentiationImproves profitability Increases value-add opportunities
151515© 2005 Cisco Systems, Inc. All rights reserved.
Program Workflow
Pre-qualification (one time per solution)
Deal Registration (one per deal)
Evaluation (annual review)
1
2
3
161616© 2005 Cisco Systems, Inc. All rights reserved.
Program Workflow
Pre-qualification (one time per solution)
Deal Registration (one per deal)
Evaluation (annual review)
1
2
3
Partner submits Solution Business
Plan
Program Councilvalidates solution
Business Plan
Pre-Qualified Partner
(evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution Business Plan
171717© 2005 Cisco Systems, Inc. All rights reserved.
Program Workflow
Pre-qualified?Field (CAM/AM)
validate registration
Program Mgrvalidates
registration
approve
deny
REJECT
Deal Protection(review at 6 months)
approve
deny
REJECT
no
REJECT
yes
Pre-qualification (one time per solution)
Deal Registration (one per deal)
Evaluation (annual review)
1
2
3
Partner submits Solution Business
Plan
Program Councilvalidates solution
Business Plan
Pre-Qualified Partner
(evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution Business Plan
181818© 2005 Cisco Systems, Inc. All rights reserved.
Program Workflow
Pre-qualified?Field (CAM/AM)
validate registration
Program Mgrvalidates
registration
approve
deny
REJECT
Deal Protection(review at 6 months)
approve
deny
REJECT
no
REJECT
yes
no
REMOVE
Met min. revenue:SMB - $200K
Enterprise - $1M
Met at least 70% of
forecast?
yes
REMOVE
RENEW
no
yes
Partners removed from program may not reapply for six months.
Pre-qualification (one time per solution)
Deal Registration (one per deal)
Evaluation (annual review)
1
2
3
Partner submits Solution Business
Plan
Program Councilvalidates solution
Business Plan
Pre-Qualified Partner
(evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution Business Plan
191919© 2005 Cisco Systems, Inc. All rights reserved.
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
202020© 2005 Cisco Systems, Inc. All rights reserved.
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
212121© 2005 Cisco Systems, Inc. All rights reserved.
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.
222222© 2005 Cisco Systems, Inc. All rights reserved.
Solutions Example
� WLAN� IP Communications
� Security
• Warehouse Management System• Employee Resource Planning
• Supply Chain Management
Logistic/Warehousing
� WLAN� IP Communications
• Warehouse Management System• Supply Chain Management
Transportation
� WLAN
� IP Communications
• Supply Chain Management• Xtended Markup Language
• Warehouse Management System
Manufacturing
� WLAN� IP Communications
• Customer Relationship Management• Billing POS
• Warehouse Management System
Retail
� WLAN
� Security� IP Communications
• Building Automation
• IP based Physical security ( access control, video surveillance, fire )
• Converge applications that drive collaboration and increase productivity increase in workplace
Connected RealEstate
� FT Upgrades� WLAN + WCS
� Security� IP Communications
� IP Wireless Phones� Call Manager
� MeetingPlace / VT Advantage
• Nurse Call
• Patient Monitoring• Location based services
• Collaborative Care• PACS (E-Radiology)
HealthCare
Cisco TechnologiesApplications Vertical Market
232323© 2005 Cisco Systems, Inc. All rights reserved.
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
• 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
• India
• Singapore
242424© 2005 Cisco Systems, Inc. All rights reserved.
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
252525© 2005 Cisco Systems, Inc. All rights reserved.
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: [email protected] Each partner solution requires a business plan.
• Partners will receive notification within 10 business days via e-mail.
262626© 2005 Cisco Systems, Inc. All rights reserved.
How to Learn More
• Website: http://www.cisco.com/asiapac/channels/promotions/sip.shtml
Presentation
Q&A
Program Rules
User Guide
Business Plan Template
• Program alias for submitting solution business plan and general questions:
• Submit presales milestone documents to:
• Deal Registration Approval Tool: http://www.cisco.com/go/deals