Cisco Systems is accelerating the evolution of its channel strategy and as always, stresses Janice Hulse, senior director, channels operations, Cisco Systems, it is all about “growing partner profitability and value-adding.”

“We want to enhance and evolve our partner eco-system, thereby pushing our partners up the value chain and at the same time, always ensure that their profitability remains intact and improves,” she adds.

Enhancements to the Cisco program this year, she says have been both breadth-wise and depth-wise, moving away from a unit-based model. For example, with regards to their technology specializations, Cisco has realized the importance of including services, and has done exactly this earlier this year. “Our specializations have always centered on customer satisfaction and support infrastructure. However, we decided we wanted to increase the depth of these specializations and this is where our integrated approach comes in. This will in turn provide our partners with better margins and therefore increase their profitability,” she explains. Also bolstering the program in the introduction of lifecycle services in the technology giant’s portfolio, which is now offering this to their partners as well.

Partners can invest in a specific specialization or in all 4 (Wireless LAN, United communications, Routing and Switching and Security). In addition, a new category of specialization, called Master Specialization has been introduced. When partners achieve this, they will earn the title of for example, “Master Specialization Gold Partner’. Partners in this category have to specialize in lifecycle services as well. “Our Gold partners’ really like this as it is a key differentiator for them in the market,” says Hulse.

These enhancements to Cisco’s channel program were not made in a vacuum, according to Hulse and were shared with their partners at the company’s annual Partner Executive Forum held in February this year at San Diego, where they also got feedback and input from both partners as well as customers. “These enhancements are a working progress of 18-20 months,” adds Hulse.
Following the Forum, the company’s channel managers gave workshops to all partners, especially those who did not attend the sessions in San Diego. The objectives of these workshops were to train, take the partners through the enhanced program find out the gaps in the skill-sets of partners and help them.

The feedback from partners has been great says Hulse, and Cisco is concentrating in getting all their partners through the transition period as fast as possible. This seems to be an effective game-plan because out of the 13 countries in the Asia, 10 have already been trained/educated in the program. “The program definitely gives our partners more flexibility. Partners can choose to focus on their areas of specialization.”

The new enhancements have many benefits, says Hulse and already, the company is seeing growth in all aspects— be it voice, security or wireless. It also gives them good opportunities to recruit new partners in new markets.

In the Asia Pacific, Cisco has a defined strategy, adds Hulse. “It is high-touch and we have a layered sales pyramid. We have the service providers and the global System Integrators like IBM for example, and then we have the commercial space distribution partners and the 2-tier partners (for example, the resellers). Our strategy in the region really depends on the state of the market.

Commenting on Cisco’s expectations of the new modifications made to their program, Hulse says that of course, they want the transition to work within the time-frame set and are confident that they can do so without any hitches. “We are changing the name of the game with these new enhancements. They will have to drive our business further and ensure that we remain competitive, plus it gives our partners more choices,” says Hulse.

And what is the main challenge? “The 5-tiers go-to-market demand,” says Hulse.
This refers to the partners who service both the high-end as well as the low-end of the market. “It is definitely challenging to serve both ends of the market and can only be done if the right business plans are in place.” However, having said this, Hulse is confident that Cisco can overcome this challenge together with its partners.

“Partners must have consistent messaging and this is one of our strengths, and something we have been focusing on over the last 10 months. For example, where and what we reward in our programs and the level of rebates,” says Hulse. “This puts everyone on the same playing field and our partners in the Asia Pacific are absolutely delighted,” she notes.

Hulse adds that Cisco is also proud of how they are helping to fuel growth in advance technologies. “Cisco has definitely helped to grow and fuel the market and this in turn has helped us to grow and recruit new partners.”

And if you think Cisco is stopping here, the company has also set its sights on achieving and growing new market verticals together with its partners in the next year. Hulse mentions that the energy market in China for example is most interesting.

“Our channel engagement with our partners has never been better and this is shown through the attendance rates of our partners at our events. Over 200 partners joined us at San Diego and at our2-tier Summit in Shanghai on the 21st of June, about 400 partners signed-up.”

“Our channel program has always been about profitability, the ease of doing business, making it easy to do business with and above all, continually innovating the program. This is the secret of our channel success,” reveals Hulse ◊