Cisco Business Solutions Workshop Series 2006
CISCO SERVICES DELIVER
RECURRING REVENUE STREAMS
CBSW 2006
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Cisco Services.
Making networks work.
Better together.
Session Number
Presentation_ID
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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?
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Driving Partner Success through
Cisco-Services Framework
We’re Better Together!
• Minimum set of services
needed to successfully
implement and support a
technology solution
Prepare
Moves, Adds, and Changes
Optimize
Plan
Security Troubleshooting
and Support (SA & PSA)
• Within services
framework
Partner
Brand
Change Management
Cisco Brand &
Delivered Services
& Delivered
• Partner provides core
expertiseCisco Enabled
• Cisco provides
Detailed Design
Deployment Project
Development
Management
operational expertise
Security Operations
Configuration Management
Signature File Update
Security Advisor
Operate
Security Intelligence
Design
Hardware Support
Software Support
Technology Strategy
Vulnerability Assessment
Leading Practice Dev
Training
Security Administration
Implement
Security Assessment
High Level Design
Security Readiness
Assessment
Security Implementation
Plan Development
Security Implementation
Security Incident Response
Security Improvement
Prepare
Plan
Design
Implement
Operate
Optimize
Partners can drive significant margin with Cisco-supported services!
CBSW 2006
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Building a Services Practice
Prepare
CBSW 2006
Plan
Design
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Implement
Operate
Optimize
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Why Build a Services Practice?
CBSW 2006
Retain and
satisfy your
customers
Customers that purchase
services are highly
satisfied customers
Strengthen
your business
finances
Services are a high-margin,
annuity business that will
keep your business
profitable
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Satisfied customers are
loyal customers who will
continue to buy!
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Best-in-Class vs. Typical Services Practice
Typical
1000’s $
Hardware Sales
Cisco Services
Services GM
Return on Working Capital
Value of Services Annuity
$800
$69
$10
19%
$31
Attach Rate
Renewal Rate
3-Year Contract
40%
30%
0%
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Best-in-Class vs. Typical Services Practice
Best in Class
Typical
1000’s $ 1000’s $
Hardware Sales
Cisco Services
Services GM
Return on Working Capital
Value of Services Annuity
$800
$69
$10
19%
$31
$800
$495
$74
48%
$222
Attach Rate
Renewal Rate
3-Year Contract
40%
30%
0%
85%
80%
33%
Would you want to know how to build an
annuity business seven times the average Partner?
CBSW 2006
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Best-in-Class Practices for Selling Services
Prepare
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Plan
Design
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Implement
Operate
Optimize
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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
CBSW 2006
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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
CBSW 2006
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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
CBSW 2006
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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
CBSW 2006
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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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A – Attach services at point of sale
R – Renew service contracts
Top 5 Attach Rate Best Practices
M – Execute Multiyear contracts
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
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A – Attach services at point of sale
R – Renew service contracts
Top 5 Renewal Best Practices
M – Execute Multiyear contracts
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
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A – Attach services at point of sale
R – Renew service contracts
Top 5 Multiyear Best Practices
M – Execute Multiyear contracts
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
CBSW 2006
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Cisco Support Services
Prepare
CBSW 2006
Plan
Design
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Implement
Operate
Optimize
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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)
CBSW 2006
Keep your customers’
software applications current
Choose minor or major
release upgrade support
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Cisco Partner Programs
Prepare
CBSW 2006
Plan
Design
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Implement
Operate
Optimize
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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
CBSW 2006
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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
Prepare
Plan
Design
Implement
Operate
Optimize
Thank you!
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CBSW 2006
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