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1Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
CISCO SERVICES DELIVER RECURRING REVENUE STREAMS
© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006 Cisco Public
Cisco Business Solutions Workshop Series 2006
2© 2006 Cisco Systems, Inc. All rights reserved.Session NumberPresentation_ID Cisco Public
Cisco Services.
Making networks work. Better together.
Cisco Services.
Making networks work. Better together.
3Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Workshop Agenda
• What is the impact of a services practice on my business?
• What are the how-to’s of building a services practice?
• What is Cisco doing to support you?
4Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Driving Partner Success through Cisco-Services Framework
• Minimum set of services needed to successfully implement and support a technology solution
• Within services framework
• Partner provides core expertise
• Cisco provides operational expertise
Partners can drive significant margin with Cisco-supported services!
PreparePrepare
PlanPlanOptimizeOptimize
OperateOperate DesignDesign
ImplementImplement
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
Security Readiness Assessment
Vulnerability Assessment
Security Implementation Plan Development
Security Operations Leading Practice Dev
Detailed Design Development
High Level Design
Technology Strategy
Deployment Project Management
Security Implementation
Training
Security Improvement
Security Assessment
Security Incident Response
Change Management
Security Troubleshooting and Support (SA & PSA)
Configuration Management
Moves, Adds, and Changes
Software Support
Hardware Support
Signature File Update
Security Administration
Security Intelligence
Security Advisor
Partner Brand Partner Brand & Delivered& Delivered
Cisco EnabledCisco Enabled
Cisco Brand & Cisco Brand & Delivered ServicesDelivered Services
We’re Better Together!
5Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Building a Services Practice
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
6Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Why Build a Services Practice?
Strengthen your business finances
Retain and satisfy your customers
Services are a high-margin, annuity business that will keep your business profitable
Customers that purchase services are highly satisfied customers
Satisfied customers are loyal customers who will continue to buy!
7Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Best-in-Class vs. Typical Services Practice
Hardware SalesCisco ServicesServices GM
Value of Services Annuity
Attach RateRenewal Rate3-Year Contract
$800$69$10
19%$31
40%30%0%
Typical1000’s $Typical1000’s $
Return on Working Capital
8Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Best-in-Class vs. Typical Services Practice
Hardware SalesCisco ServicesServices GM
Return on Working CapitalValue of Services Annuity
Attach RateRenewal Rate3-Year Contract
$800$495$74
48%
85%80%33%
Best in Class1000’s $
Best in Class1000’s $
$222
$800$69$10
19%$31
40%30%0%
Typical1000’s $Typical1000’s $
Would you want to know how to build an annuity business seven times the average Partner?
9Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Best-in-Class Practices for Selling Services
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
10Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
ARM Yourself to Sell More Services
A – Attach services at point of sale
R – Renew service contracts
M – Execute Multiyear contracts
11Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
ARM Yourself to Sell More Services
A A –– AttachAttach services at point of sale services at point of sale
R R – – Renew service contractsRenew service contracts
M M – – Execute Multiyear contractsExecute Multiyear contracts
12Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
ARM Yourself to Sell More Services
A A – – Attach services at point of saleAttach services at point of sale
R R –– RenewRenew service contracts service contracts
M M – – Execute Multiyear contractsExecute Multiyear contracts
13Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
ARM Yourself to Sell More Services
A A – – Attach services at point of saleAttach services at point of sale
R R – – Renew service contractsRenew service contracts
M M –– Execute Execute MultiyearMultiyear contracts contracts
14Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
ARM Yourself to Sell More Services
A – Attach services at point of sale
R – Renew service contracts
M – Execute Multiyear contracts
15Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Top 5 Attach Rate Best Practices
Require executive signoff on all orders without service
Quote Services on every deal
Regularly review Services contracts
Add sales commission accelerators - pay on margins
Bring in your Cisco sales representative
Require executive signoff on all orders without service
Quote Services on every deal
Regularly review Services contracts
Add sales commission accelerators - pay on margins
Bring in your Cisco sales representative
A – Attach services at point of sale
R – Renew service contracts
M – Execute Multiyear contracts
16Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Hire a renewal sales specialist
Create a 120-day renewal process
Compensate managers & sales team
Hire a “service contract” specialist
Create a customer contract and asset database
Hire a renewal sales specialist
Create a 120-day renewal process
Compensate managers & sales team
Hire a “service contract” specialist
Create a customer contract and asset database
Top 5 Renewal Best Practices
A – Attach services at point of sale
R – Renew service contracts
M – Execute Multiyear contracts
17Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Fully compensate both sales team & managers
Train on financial selling
Regularly review multiyear metrics
Bring in your Cisco sales representative
Take advantage of Cisco Capital financing
Fully compensate both sales team & managers
Train on financial selling
Regularly review multiyear metrics
Bring in your Cisco sales representative
Take advantage of Cisco Capital financing
Top 5 Multiyear Best Practices
A – Attach services at point of sale
R – Renew service contracts
M – Execute Multiyear contracts
18Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Cisco Support Services
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
19Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Cisco Technical Support Services:A Complete Offering
Cisco SMARTnet™ and SMARTnet Onsite
Software Maintenance, Advanced Replacement, Technical Support
Cisco SMB Support Assistant
Provide broad-based technical support to organizations of up to 250 employees
Cisco Software Application Support (SAS) plus Upgrades (SASU)
Keep your customers’ software applications current
Choose minor or major release upgrade support
20Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Cisco Partner Programs
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
21Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Programs Designed for Your Service—Practice Building!
ARM Incentive Program • Drive Attach, Renewal & Multiyear (ARM) services
sales• Partner sales reps earn grand-prize sweepstake
entries through online quizzes
Pay For Performance • Rebates for renewal-rate and attach-rate
management
Advance Technology Services Programs• Opportunity Incentive Program
22Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Financing and Leasing Solutions
Financing is one of the most important tools you have to manage a customer's budget concerns and promote multiyear contracts
• Faster Deployment
• Improved cash flow
• Budget management
23Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Conclusions
Walk-aways
• Financial impact
• Best practices
• Train Sales force
• Programs
24Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006
Q&A
Thank you!
PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate
25Cisco Public© 2006 Cisco Systems, Inc. All rights reserved.CBSW 2006