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© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential Presentation_ID 1 Commitment to Partner Profitability CISCO VALUE INCENTIVE PROGRAM PERIOD 12 August 5, 2008, 8:00 a.m. (PDT)
Transcript
Page 1: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

Commitment to Partner Profitability

CISCO VALUE INCENTIVE PROGRAM PERIOD 12

August 5, 2008, 8:00 a.m. (PDT)

Page 2: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2

Cisco Value Incentive Program

Commitment to Partner Profitability

August 5, 2008

Aug 11, 2005

Page 3: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 3

Agenda

� VIP 11

�Exit Criteria for Payout

�Timeline

� VIP 12

�What’s New: Data Center and Business Edition

�Security Overview

�Unified Communications Overview

�Wireless LAN Overview

�Program Rules

�Global SAT details

�Program Summary

Page 4: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4

Exit Criteria Summary for VIP Period 11(For APAC Only)

Cisco Advanced Wireless LAN

$15k Q1 entry $7.5k Q2 entry

Wireless

2nd Payout Date for VIP 11

Approximately October/November 08 for product booked by July 26, 2008 and shipped before August 20, 2008

Approximately December 08/January 09 for product booked by July 26, 2008 and shipped between August 20– October 25, 2008

1st Payout Date for VIP 11

Cisco Advanced Security

Cisco Advanced Unified Communications

Cisco Express Unified Communications

Qualification

(Required: Partner Enrollment – July 26, 2008)

$20k Q1 entry $10k Q2 entry

$25K (UC)Q3 Entry / $15K (UCE)Q3 Entry $12.5K (UC)Q4 Entry / $7.5K (UCE)Q4 Entry

Bookings Minimum

4.31 or higher (APAC)

4 + 1 per $250K Above $500K (UC & Security)

2 + 1 per $125K Above $150K (UC Express & WLAN)

20 surveys max

CSAT Score

CSAT Surveys

SecurityUnified Communications

Page 5: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 5

Cisco Value Incentive Program Period 12

Program Enhancements For FY’09

Page 6: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 6

Program Foundations

� Cisco Value Incentive Program is a key component of Cisco’s commitment to Partner Profitability

� Voice, Wireless LAN, Security products and newly introducing Data Center included

� Ongoing program with 6 month payouts

� Reviewed for periodic enhancements

� Should evolve with customer & market needs

� Should build and reward partner competency in areas valued by the customer

� Should drive the correct behavior and be forward-looking

� Should align direct sales force and partner incentives

� Promotes the value of the integrated Cisco infrastructure advantage (IIN)

Page 7: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 7

What’s New

VIP Period 12

Data Center

Page 8: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 8

$10B Opportunity by FY 2012

Cat 6K Switching

Nexus Family

Storage

DC Services(WAAS, SLB, Security)

DC Access Switching(Blades, TOR, HPC, 49xx)

Future Products

Services

Data Center Bookings Forecast$ Billions

0

2

4

6

8

10

12

FY06A FY07 FY08 FY09 FY10 FY11 FY12

Source: DSSTG finance based on RIM; assumes funded 10 point plan; includes both dedicated data center products and SKUs and allocations based on product group assessments

Page 9: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 9

TAM Growth of DC Technologies

TAM Growth in DC Products (2006-2010)

23.8%

14.0%

52.0%

8.0%

46.1%

16.1%

22.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

App Delivery Fibre Channel 10 Gigabit Gigabit Blade Server DC Security WAN Opt

Gro

wth

Ra

te

Data Sources: Cisco Intelligence Center and Dell’Oro

Page 10: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 10

0

2

4

6

8

10

12

5 6 7 8 9

SFS (1)

Optical (4)

Security (2)

ANS (3)

Storage (1)

Cat 4K+6K (2)

Exponential Growth When Selling End-to-End Data Center Product Families

Average DC Products Deal Size*, $M

# of DC Product Families in Deal

* DC Deal size = sum of DC product purchases by a top 1000 enterprise customer in a quarter

$0.8M $0.8M

$3.7M

$6.1M

$11.4M

DC Product Category(# of Product Families)

Page 11: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 11

VIP 12 Data Center

N/AN/AMasters

N/AN/AServices

1% product shipmentsMeet program exit criteriaGold

10% Category Advanced product shipments

Meet program exit criteria.Advanced

Meet program exit criteria.

Requirement

5% Category Foundation product shipments

Foundation

Data CenterPayment

� Simplified requirements - only three components:� Specialization: Must obtain valid Advanced Data Center Networking Infrastructure

(DCNI 2.0) Specialization by December 27, 2008 and maintain it for the remainder of the program

� Sales volume: Minimum bookings: US$150,000 net bookings in qualifying Data Center SKUs for specified dates.

� Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or higher on all surveys received for specified dates.

Page 12: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 12

What’s New

VIP Period 12

UC Business Edition

Page 13: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 13

Cisco Authorized Business Edition Reseller VIP Program UC Business Edition

� New VIP program for Cisco Authorized Business Edition Resellers

� Program will leverage the Express VIP payout structure:

–16% payout on “Advanced” Cisco Unified Communications Manager Business Edition sku’s

–10% payout on “Foundation” UC sku’s (i.e. IP phones, gateways, etc.)

� Program will go live in VIP12

� Partner must obtain Cisco Authorized Business Edition Reseller Authorization by December 27, 2008

http://www.cisco.com/web/partners/program/specializations/x-ucom/aberp.html

Page 14: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 14

Opportunity for Express UC Partners

� Cisco Authorized Business Edition Reseller program provides Express partners with access to Cisco’s full SMB UC portfolio

� Cisco Authorized Business Edition Reseller VIP Program increases partner profitability opportunities in SMB

� Increased access for Express partners to Cisco’s “Advanced” UC portfolio with VIP payouts of 16% (Business Edition sku’s classified as Advanced)

Page 15: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 15

VIP 12 Business Edition

N/AN/AMasters

N/AN/AGold

16% Category Advanced product shipments

Meet program exit criteria.Advanced

Meet program exit criteria.

Requirement

10% Category Foundation product shipments

Foundation

Business EditionPayment

� Simplified requirements - only three components:� Specialization: Must obtain valid Business Edition Reseller Authorization by

December 27, 2008 and maintain it for the remainder of the program� Sales volume: Minimum bookings: US$15,000 net bookings in qualifying Business

Edition SKUs for specified dates. � Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or

higher on all surveys received for specified dates.

Page 16: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 16

Security

VIP Period 12Program Specifics

Page 17: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 17

Security Market Dynamics

� Security is of central importance to all businesses

� Networks and the Internet are now vital parts of most business and commercial processes.

� High reliance on the Internet means businesses require safeguards for network availability and protection against data theft and corruption of information.

� Today’s Security needs are more complex

� Today’s threats are more sophisticated and increasingly varied.

� The network must be secure throughout – not just at the perimeter:

� Solutions must thus address multiple types and layers of risk and must be integrated, interactive and adaptive.

� Market trends show higher growth in advanced solutions compared to core security technologies

� Synergy Research Group:

� Advanced Security solutions (e.g. Intrusion Protection, Adaptive Desktop Security, Network Admission Control) will see rapid growth.

� Core Security solutions (Firewall, VPN) are now well established and part of the network.

� End-users are increasingly selecting vendors and partners based on Security competence and the ability to deliver advanced security solutions.

Page 18: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 18

Channel Imperatives for Security

� Channel Goals

� Drive partner growth and profitability

� Ensure every partner provides Core Security solutions with every network sale

� Empower partners to invest in selling Advanced Security solutions – e.g. a self-defending network with every sale

� Channel Strategies

� Build channel capacity that can sell and deliver Advanced Security solutions

� Provide tools and incentives to partners to build Advanced Security Practices, including life cycle and professional services

� Encourage Core security solutions with all network sales

Page 19: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 19

VIP 12 Objectives

� To accelerate the building of Advanced Security Practices:

�Maintained consistent incentive payout percentages

�Intended to support partners in their development of practices around the leading edge, more complex security technologies

�Maintained the number of product families in both the foundation and Advanced category

Page 20: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 20

Summary of VIP12 Router Family Changes

Advanced (14%)

Will be replaced with HVPN during the

VIP12 period.

High performance voice and security router bundle that includes Security, Voice DSPs and Voice Gateway, High Performance IPsec Acceleration and Compression, Cisco Unified CM Express / Survivable Remote Site Telephony License.

SecurityCisco ISR Series Router – V3PN

Foundation (6%)

Move to Foundation

High performance security router bundle that includes foundationsecurity features with hardware-based IPsec Acceleration and Compression.

SecurityCisco ISR Series Router - HSEC

Bundle

The HVSEC bundle includes all the capabilities of the V3PN bundle above with the following changes: SRST licenses instead of Unified CM Express, user count reduced to fit a typical branch office. Memory increased as per UC install-base requirements – on larger models, memory is maxed.

The new Cisco Aggregation Services Router (ASR) security bundle is an innovative solution for next generation WAN infrastructure with performance and scalability for embedded services unmatched in the industry.

Capabilities

Voice

Security

VIP Technology

Category

Foundation (6%)

Replaces V3PNCisco ISR Series Router - HVSEC (formerly V3PN)

Foundation (6%)

New additionCisco ASR 1000 Series Router

Payout Level

VIP12 ChangeRouter Product

Family

New

� Integrating security and voice pervasively into the network delivers a number of benefits to customers, including investment in an infrastructure that will deliver current and future voice and security services to meet demanding business needs

� These voice and security router bundles also allow customers to establish a proactive voice security stance to secure all IP communications, and to meet regulatory compliance requirements such as Payment Card Industry (PCI) and Sarbannes Oxley that require enterprises to secure their network.

� The addition of the new Cisco ASR 1000 Series Router security bundles provides partners new opportunities to embed router-based security into enterprise class networks.

Page 21: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 21

VIP Security Program: Historical Evolution

+2%

+1%

--

14%

6%

X

X

X

VIP11

+2%

+1%

--

14%

6%

X

X

X

VIP10

+2%

+1%

--

14%

6%

X

X

X

VIP12

+1%

+1%

--

14%

6%

X

X

X

VIP9

+1%

+1%

--

14%

6%

X

X

X

VIP8

Master Specialization payout

Gold Cert. payout

--

14%

7%

X

X

X

VIP7

--

14%

7%

X

X

X

VIP6

2%2%2%2%--Growth payout

10%10%10%10%10%Base payout

X

X

VIP5

Broaden Security Focus

XXXXBuild Security Practice

XXXXPartner Profitability

VIP4VIP3VIP2VIP1

Page 22: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 22

VIP 12 Security

2% product shipments

Meet program exit criteria Masters

1% product shipments

Meet program exit criteriaGold

14% Category Advanced product

shipmentsMeet program exit criteria.Advanced

Meet program exit criteria.

Requirement

6% Category Foundation product

shipmentsFoundation

SecurityPayment

� Simplified requirements - only three components:� Specialization: Must maintain valid Advanced Security Specialization for the entire

program� Sales volume: Minimum bookings: US$20,000 net bookings in qualifying Security

SKUs for specified dates. � Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or

higher on all surveys received for specified dates.

Page 23: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 23

Partner Benefits of VIP 12 Security Program

� Program stability: We have maintained the two category payout structure

� ROI: VIP 12 payout help offset start-up costs (training, etc.) related to selling advanced products.

� Maintain higher reward for Gold Certified and Master Specialized investment

Page 24: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 24

Unified Communication

VIP Period 12Program Specifics

Page 25: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 25

Voice Market Dynamics

� Unified Communication has become mainstream

� 2005 the cross-over year: more Unified Communications than TDM

� Commercial developing and fastest growing

� Customer demand for Unified Communications applications is accelerating

�Faster growth for applications than infrastructure

� Unified Communications voice infrastructure growth rate will continue strong (30-35%)

� Unified Communications applications growth rates will be high (50-60%)

Page 26: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 26

Channel Imperatives for Unified Communications

� Channel Goals

� Build channel capacity and capability on Voice Applications

� Upsell installed Unified Communications customers with new or extended applications

� Make Applications a more significant part of every Unified Communications sale

� Improve partner profitability and services revenue

� Channel Strategies

� Provide tools and incentives to partners to build Voice Application Practices including lifecycle and professional services

� Network sales with Unified Communications

� Leverage VIP incentives, applications and professional servicesto drive partner growth and profitability

Page 27: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 27

VIP 12 Objectives: Unified Communications

� Continue to accelerate building of Unified Communications Applications Practices, by provided increased incentives for applications

�Support partners in development of practices around the leading edge, advanced Unified Communications applications

�Simplify program structure by eliminating previous attach rate design

�Move to simply paying applications at a higher rate than non-applications—no attach rate threshold anymore

� Continue to reward VIP partners for basic Unified Communicationssales and for voice-enabled integrated infrastructure sales

Page 28: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 28

From a $10B+ Market in IP Telephony …

5,000

0

10,000

Mark

et

Siz

e (

$M

)

25,000

FY’03 FY’04 FY’05 FY’06 FY’07 FY’08 FY’09 FY’10

30,000

35,000

20,000

15,000

Sources: Synergy, Gartner, Wainhouse, Datamonitor, Ovum, and Cisco

TDM PBX

IP PBX

40,000

Messaging

Contact Center

Conferencingand Collaboration

Enterprise FMC

Rich Media

Email/Calendaring

Enterprise IM

… to a $30B Market in Unified Communications

Page 29: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 29

TDM ���� IP • Accelerate Transition; Network Centricity

Fragmented ���� Consolidated • Active Participation; Platform Approach

IT Driven ���� Consumer Driven • Open Ecosystem; Policy; User Experience

Wired + Mobile • Multiple Devices; Embrace Interop

Premise + SaaS • Expand Offer; Enable Ecosystem

Video Becomes Core • User Experience; Increase Productivity

Key Considerations / GoalsMarket Trend

Market Trends and Transitions:Changing the Way People Work

Page 30: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 30

Summary of VIP12 – Advanced UC Changes� Continued emphasis on CUWL

“A la carte” UCM and DLU’s paid at 15% Foundation level

All CUWL SKU’s paid at 21% Advanced level and CUWL UCSS paid at 21% Advanced level

� Expanded emphasis on upgrades

Upgrades from previous releases to CUWL continue Advanced with 21% payout

6.x and 7.x upgrade skus now included as Advanced with 21% payout

“A la carte” applications paid at 21% Advanced level

� Increased emphasis on mid-market

Unified Communications Manager Business Edition paid at 21% Advanced level

� Continue to reinforce UCSS

UCSS for Advanced SKU’s pays at 21%

UCSS for Foundation SKU’s now also paid at 21%

� New ISR/CUCME/CUE bundle (C28XX/C38XX-XXUCXXX) paid at 21% Advanced level

� ISR AXP module added to UC VIP at 15% Foundation level

� Unity and CC MCS servers now paid at 15% Foundation level

� Older releases and EOS product SKU’s removed from VIP. For example:

UCM 4.X is no longer included in UC VIP

IOS SP Software SKU’s dropped from UC VIP

CAT6000 Blades dropped from UC VIP

CUVC dropped from UC VIP – recommend new MeetingPlace 7.0 with CUWL

1% Gold “Kicker” and 2% Master “Kicker” applies to all of the above

Page 31: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 31

Summary of VIP12 – Express UC Changes

� Continued emphasis on applications�CUE paid at 16% Advanced level

�Cisco Unified CallConnector paid at 16% Advanced level

�New ISR/CUCME/CUE bundle (C28XX/C38XX-XXUCXXX) paid at 16% Advanced level

� ISR AXP module added to UC VIP at 15% Foundation level

� Older releases and EOS product SKU’s removed from VIP

For example: NM-CUE, NME-CUE replaced by new versions

Page 32: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 32

VIP Unified Communications Program: Historical Evolution

+1%

+2%

21%

15%

X

X

X

VIP11

+1%

+2%

21%

15%

X

X

X

VIP10

+1%

+1%

20%

17%

X

X

X

VIP9

+1%

+1%

20%

17%

X

X

X

VIP8

+1%Gold Cert. payout

+2%Master Spec. payout

+4-6%

--

16%

X

X

X

VIP7

+4-6%

--

16%

X

X

X

VIP6

----------Apps payout

21%2%2%2%2%--Incentive payout/Adv*

15%20%20%20%10%10%Base payout /Found.*

X

X

VIP5

XApplication Focus

XXXXXBuild IPC Practice

XXXXXPartner Profitability

VIP12VIP4VIP3VIP2VIP1

Page 33: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 33

VIP 12 Unified Communications� Simplified requirements - only three components:

� Specialization: Must maintain valid Advanced Unified Communications Specialization for the entire program

� Sales volume: Minimum bookings: US$25,000 net bookings in qualifying Unified Communications SKUs for specified dates.

� Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or higher on all surveys received for specified dates. Modified as appropriate by Theatre.

Payment Requirement Unified Communications

Foundation SKUs Meet program exit criteria 15% Category Foundation product shipments

Advanced SKUs Meet program exit criteria 21% Category Advanced product shipments

Gold Certified Partners

Meet program exit criteria 1% product shipments

Master Specialized Partners

Meet program exit criteria 2% product shipments

Page 34: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 34

VIP 12 Business Edition & UC Express

N/AN/AMasters

N/AN/AGold

16% Category Advanced product shipments

Meet program exit criteria.Advanced

Meet program exit criteria.

Requirement

10% Category Foundation product shipments

Foundation

Business Editionpayout

� Simplified requirements - only three components:� Specialization: Must obtain valid Business Edition Reseller Authorization by

December 27, 2008 and maintain it for the remainder of the program� Sales volume: Minimum bookings: US$30,000 net bookings in qualifying Business

Edition and UC Express SKUs for specified dates. � Customer satisfaction: Average customer satisfaction score: 4.34(APAC only) or

higher on all surveys received for specified dates. Modified as appropriate by Theatre.

Page 35: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 35

VIP 12 Unified Communications Express� Simplified requirements - only three components:

� Specialization: Must maintain valid Unified Communications Express Specialization for the entire program

� Sales volume: Minimum bookings: US$15,000 net bookings in qualifying UC Express SKUs for specified dates.

� Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or higher on all surveys received for specified dates. Modified as appropriate by Theatre.

payout Requirement Unified Communications

Foundation Meet program exit criteria 10% Category Foundation product shipments

Advanced Meet program exit criteria 16% Category Advanced product shipments

Gold Certified Partners

N/A NA

Master Specialized Partners

N/A NA

Page 36: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 36

Benefits to Cisco and Partner of Unified Communications Applications Focus

� Increases the total size of the average deal

� Increases partner services dollars associated with the service-rich applications

� Improves the customer value associated with an Unified Communications purchase

� Accelerates the Unified Communications market adoption rate

� Provides funding to support partner’s investment in Voice Application Practices

Page 37: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 37

Wireless LAN

VIP Period 12Program Specifics

Page 38: CISCO VALUE INCENTIVE PROGRAM PERIOD 12 · Specialization: Must obtain valid Business Edition Reseller Authorization by December 27 , 2008 and maintain it for the remainder of the

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 38

Niche Players Visionaries

Challengers Leaders

Benefits to You:

• Safe choice

• Investment protection

• Experience and brand

• Track record of deployments

• Unmatched ability to execute

• Significant R&D commitment

• Agility (i.e. shipping 802.11n APs)

• Unrivaled partner enablement and service/support

Meru Networks

Nortel

HP

BluesocketAlcatel

Siemens

Vivato

Enterasys

Proxim

Completeness Of Vision

Symbol

2005200520052005

Aruba Networks

Ab

ilit

y T

o E

xecu

te

Trapeze Networks

Colubris

3Com

Extricom

Xirrus

2006 2007200720072007

Please View In Presentation Mode

Foundry

Extreme

Source: Gartner: Magic Quadrant 2005, 2006, 2007

Cisco— Consistent Leadership in Mobility

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Evolving to the Mobile Business

Business in Motion

Expanded Business Ecosystem

Agile Business for Competitive

Advantage

Mobilizing Business Applications

Increasing User Mobility

Proliferationof Mobile Devices

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Introducing Cisco MotionExtend Mobility

Applications RightDevice—Right Network

Selecting the Right Communications Media Right Time, Right Place

Delivering LoB/FunctionalLeader Requirements—

Open API

Unify Disparate Networks

Addressthe Client“Wave”

Facilitate Collaboration

OpenMobility

Applications

Securing and ManagingDevices CentralizedClient Provisioning

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Mobility Services NetworksApplications Applications Applications Applications

Ethernet RFIDWi-Fi

Open API

Open Protocol

NMSP

Location

WIPS Handoff

Service “n”

Mobility Services Engine

Controller

WCS

SiSiSiSiSiSi

Apps Source Intelligence from

the MSE viaOpen API

Centralized Services and

Network Management

Open Protocols Unify Networks

Centralized Services

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� Allows Transport and Applicationsto evolve independently

Abstraction layer with CAPWAP/NMSP

� Accelerate development and deployment of customized solutions

Eco-system of Application Partners

Introducing A Practical ApproachCentralized, Scalable Mobility Services

� Unified API enabling Enterprise 3.0 applications

Services and Applications Platform

� Ease of deployment and efficientallocation of CapEx

Common Framework for Multiple Services

3300 Series Mobility Services Engine

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8%

From Foundation

to Advanced

�Next-generation outdoor wireless mesh access point with integrated dual band 802.11 a/b/g radios, Ethernet, fiber and cable modem interface providing easy and flexible deployments for outdoor wireless network.

WirelessCisco 1520

Series

8%

From Foundation

to Advanced

�Cisco WCS provides a powerful foundation for WLAN systems management. WCS allows IT managers to design, control, and monitor enterprise wireless networks from a centralized location, simplifying operations and reducing total cost of ownership.

Wireless

Cisco Wireless Control System

�The Cisco 3300 Series Mobility Services Engine is an open platform that provides a new, practical approach for the delivery of mobility services and applications. It’s an appliance that supports a suite of software for centralized and scalable delivery of various mobility services.

Capabilities

Wireless

VIP Technology

Category

8%New

additionCisco 3300

Series

Payout Level

VIP12 Change

Mobility Product Family

New

� The following products are now part of the Advanced VIP category

Cisco 1520 Series Outdoor Wireless Mesh Access Points

Cisco 3300 Series Mobility Services Engine

Cisco Wireless Control System

� The following products continue in the Advanced VIP category

Cisco 1250 Series .11n Access Points

Enterprise-class Wireless LAN Controllers

Summary of VIP12 Changes for Mobility

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VIP 12 Wireless LAN

N/AN/AMaster Specialized partners

1% product shipments

Meet program exit criteriaGold Certified partners

8% product shipments

Meet program exit criteriaAdvanced SKU

N/A

Meet program exit criteria

Requirement

3% product shipments

Foundation SKU’s

N/A

Wireless LAN

Service Bonus payout

� Simplified requirements - only three components:� Specialization: Must maintain valid Advanced Wireless LAN Specialization for the

entire program.� Sales volume: Minimum bookings: US$15,000 net bookings in qualifying Wireless

LAN SKUs for specified dates.� Customer satisfaction: Average customer satisfaction score: 4.34 (APAC only) or

higher on all surveys received for specified dates. Modified as appropriate by Theatre.

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VIP 12 Program

Summary

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Enrollment Criteria – APACUnified Communications pre-requisites

• Advanced Unified Communications Specialized at enrollment

• Maintain Specialization through the entire duration of the program

• Obtain Partner Access onLine (PAL) access for sending customer satisfaction surveys

Unified Communications Business Edition pre-requisites

• Business Edition Reseller by December 27, 2008

• Maintain authorization for the remainder of the program

• Obtain Partner Access onLine (PAL) access for sending customer satisfaction surveys

Unified Communications Express pre-requisites

• Express Unified Communications Specialized at enrollment

• Maintain Specialization through the entire duration of the program

• Obtain Partner Access onLine (PAL) access for sending customer satisfaction surveys

Unified Communications Business Edition and UC Express pre-requisites

• Business Edition Reseller by December 27, 2008

• Maintain authorization for the remainder of the program

• Obtain Partner Access onLine (PAL) access for sending customer satisfaction surveys

• Partners may enroll in only one of the Unified Communications technology tracks• Partners cannot change or switch between Unified Communications tracks at anytime during the

program period. However, partners may change at the start of the next VIP period.

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Enrollment Criteria – APACData Center pre-requisites

• Premier Certification upon enrollment

• Data Center 2.0 Specialized by December 27, 2008

• Maintain Specialization for the remainder of the program

• Obtain Partner Access onLine (PAL) access for sending customer satisfaction surveys

Security prerequisites• Advanced Security Specialized at enrollment

• Must maintain specialization through the entire duration of the program

• Obtain Partner Access onLine (PAL) tool access for sending customer satisfaction surveys

• No FAST START allowed

Wireless LAN prerequisites

• Advanced Wireless LAN Specialization at enrollment

• Must maintain specialization through the entire duration of the program

• Obtain Partner Access onLine (PAL) tool access for sending customer satisfaction surveys

• No FAST START allowed

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Exit Criteria Summary for Cisco® VIP Period 12

4.34 or Higher (APAC)CSAT Score

Cisco Advanced Data Center Networking

Infrastructure(DCNI 2.0)

Cisco Advanced Security

Cisco Advanced Wireless LAN

UC - Cisco Advanced Unified Communications

BE – Cisco Business Edition Authorization (by Dec27 2008)

BE & UCX – Cisco Business Edition Authorization (by Dec 27 2008)

UCX - Cisco Express Unified Communications

Specialization

(Required: Partner Enrollment—Jan 24, 2009)

Approximately June/July 2009 for product booked by Jan 24, 2009, and shipped between February 10, 2009 and April 27, 20092nd

Payout Date for Cisco VIP 12

Meet the number of valid target CSAT ResponsesCSAT Surveys

Approximately April/May 2009 for products booked by Jan 24,2009 and shipped before February 10, 2009.

UC - $25K Q1 Entry / $12.5K Q2 Entry

BE - $15K Q1 Entry / $7.5K Q2 Entry

BE & UCX - $30K Q1 Entry / $15K Q2 Entry

UCX - $15K Q1 Entry / $7.5K Q2 Entry

Unified Communications Wireless Security Data Center

Bookings Minimum

$15K Q1 Entry$7.5K Q2 Entry

$20K Q1 Entry$10K Q2 Entry

$150K Q1 Entry$75K Q2 Entry

1st Payout Date for Cisco VIP 12

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VIP 12 Timeline

� Program Period 12: July 27, 2008– January 24, 2009, PST

� Re-enrollment Required: For VIP 11 Partners

� Enrollment Windows (for new and existing partners):

- August 10 – August 29, 2008 for Q1 & Q2

- October 27 – November 14, 2008 for Q2 only

� CSAT Survey Period:

- Start: August 1, 2008

- End: January 24, 2009

� Payout Dates:

- 1st check April/May 2009

- 2nd check June/July 2009

Partners and CAMs should use the VIP Tool to track enrollment status only:http://www.cisco.com/go/viptool

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Accelerating Applications Success

� IP Communications

� IP Contact Center

� Unity Messaging

� Rich Media

�Training material can be found at:

�VIP home page: www.cisco.com/go/vip

Numerous VODs, White Papers, Solutions Sales Guides, ROI Tools & Training Programs Are Available to Support Partner Applications Success

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VIP 12 Program

Customer Satisfaction

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Customer SatisfactionSchedule VIP12 Survey Contacts NOW!!!

Key Dates for VIP12 Survey Sending in PAL

AUG SEP OCT NOV DEC JAN

August 1, 2008 9am PT

Begin sending surveys to qualified VIP12 contacts

In PAL, all contacts sent surveys in Cisco’s FY’08 survey year are available to reserve for FY’09.

Go to PAL > Send Surveys > Scroll to bottom of screen > Select the “No Surveys Scheduled/Sent” filter

January 24, 2008

Survey Deadline

All survey responses MUST be received by 5:00

PM (pacific time) No Exceptions!

FEB

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Customer SatisfactionQualifications for GSAT valid survey

Survey Customization Questions (first section of the survey)

Respondent can customize their survey experience and reduce their survey take time

Critical that the respondent answer YES to the one or both of the following survey customization questions found within the 1st section of the survey:

�Do you obtain Cisco network products or solutions from a Cisco Pre-Sales Channel Partner, Value Added Reseller or Vendor? Yes/No

�Do you obtain Cisco network service or support from a Cisco Post-Sales Channel Partner, Value Added Reseller or Vendor? Yes/No

If they answer NO, they will never be presented with the partner related questions and the response will be bucketed into the PAL "no partner identified" classification.

The respondent can answer “No” or Don’t Know” for the majority of the additional Survey Customization Questions to expedite their survey take time.

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Customer SatisfactionQualifications for GSAT valid survey

Cisco Channel Partner Section

The name of the Channel Partner that sent you this survey invitation has been inserted above for your convenience. Do you wish to evaluate this partner? Yes/No

Technology Question

Respondent confirms the respective technology (ies) they received from the partner (the partner selects the provided technologies when requesting the survey send within PAL)

Pre-Sales Overall Question

Overall, how would you rate your satisfaction with the Pre-Sales Support provided by the above Cisco Channel Partner? Would you say you are…

Post-Sales Overall Question

Overall, how would you rate your satisfaction with the Post-Sales Support (repair, maintenance, and technical support) provided by the above Cisco Channel Partner? Would you say you are..

Response must be received by 5PM PST on January 24th, 2009

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Customer SatisfactionSampling of Program Rules

� CSAT is an integral part of channel programs such as VIP.

� Within a Cisco fiscal year, channel partners may send one survey invitation to any unique customer contact, identified at the individual person level. Channel partners may not use personal email domains and/or email aliases to send survey invites to thecustomer contact, identified at the individual person level.

� Channel partners may not send survey invitations to their own email domain, with the exception of those partners who are on anApproved Outsourcers List* (*Maintained by Certification team. Partner must meet eligibility criteria as set forth by Certification in order to be on the list)

� Once a survey invitation has been scheduled, channel partner may not cancel the survey invitation.

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VIP Period 12 Support

� Open a case on partner help online: www.ciscopartnerhelp.com

� Select category “Programs” and subcategory “Value Incentive Program”when submitting your case.

� VIP URLs:

� VIP home page: www.cisco.com/go/vip

� VIP Tool: www.cisco.com/go/viptool

� PAL Tool: www.cisco.com/go/pal

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VIP 12 Period Partner Call to Action

� Be certain to enroll in VIP 12.

� Work with your CAM to fully leverage training and enablement tools available from Cisco.

� Make application attach rate and security mix part of your daily sales practice.

� Celebrate success together

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