cisco solution incentive program (sip) program … · project manager products and ... • partner...

1© 2005 Cisco Systems, Inc. All rights reserved.

CISCO SOLUTION INCENTIVE PROGRAM (SIP)

Program Overview

Aug 2005


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


WW Channel Strategy

VALUE-ADD CAPABILITY

Individual Products

Technology Specialized

Integrated Technologies

Business Solutions

PA

RT

NE

R P

RO

FIT

AB

ILIT

Y


WW Channel Strategy


Individual Products



Business Solutions

PA

RT

NE

R P

RO

FIT

AB

ILIT

Y


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


Incentive Programs

BUSINESS SOLUTIONS

INCREMENTAL OPPORTUNITIES

ADVANCEDTECHNOLOGY

Rewards

Value IncentiveProgram (VIP)

OpportunityIncentive

Program (OIP)

SolutionIncentive Program (SIP)


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


What Is a Solution Under SIP ?

Solution=

Partner Integration Skills(Lifecycle Solution Services)

+ 3rd Party Business Application

+ Cisco Technology

Differentiated and Repeatable


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


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


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


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


PROGRAM FRAMEWORK


Program Workflow

Pre-qualification (one time per solution)

Deal Registration (one per deal)

Evaluation (annual review)

1

2

3


Program Workflow




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


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




1

2

3


Plan


Business Plan



approve

deny

REJECT



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.




1

2

3


Plan


Business Plan



approve

deny

REJECT



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


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


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.


Solutions Example

� WLAN� IP Communications

� Security

• Warehouse Management System• Employee Resource Planning

• Supply Chain Management

Logistic/Warehousing


• Warehouse Management System• Supply Chain Management

Transportation

� WLAN

� IP Communications

• Supply Chain Management• Xtended Markup Language

• Warehouse Management System

Manufacturing


• 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


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


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


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.


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:

[email protected]

• Submit presales milestone documents to:

[email protected]

• Deal Registration Approval Tool: http://www.cisco.com/go/deals

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