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!

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Building a Services Practice

PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate

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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?

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Best-in-Class Practices for Selling Services

PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate

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ARM Yourself to Sell More Services

A – Attach services at point of sale

R – Renew service contracts

M – Execute Multiyear contracts

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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

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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

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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

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Cisco Support Services

PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate

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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

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Cisco Partner Programs

PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate

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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

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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

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Conclusions

Walk-aways

• Financial impact

• Best practices

• Train Sales force

• Programs

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Q&A

Thank you!

PlanPlanPreparePrepare DesignDesign ImplementImplement OptimizeOptimizeOperateOperate

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