Smart Care Jeff McEachern Business Development Manager Smart Services © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 What Makes a Cisco Service “Smart”? …which collect Services that have Automated Software-enabled Capabilities …which is analyzed and compared to Network Diagnostic Data + Cisco’s Intellectual Capital …to provide Actionable Insight + CISCO INTELLECTUAL CAPITAL 25 years of networking innovation and leadership 6 million annual customer interactions 50 million installed devices 90,000+ technical documents © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 Smart Care Delivered and Supported by Partner Cisco Smart Care Service Single Contract Management Product Alerts and Notifications Security and Core Assessments and Repair Remote Network Monitoring Voice Assessments and Quality Monitoring Services Network Wide Maintenance Coverage Smart Capabilities Cisco IOS Updates, Upgrades, and Software Updates NBD Hardware Replacement with Optional Four Hour Coverage ‘Four Pillar’ Capabilities Cisco.com and Smart Care Portal/Tools Access 24/7 Partner Access to Technical Assistance Center © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3 Inventory & Contract Management © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4 Dashboard: Alerts & Notifications © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5 Customer Reports Supports QBRs, facilitates budgeting and demonstrates value add © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6 Smart Care: Partner Asks Operational & Marketing Changes Bigger Average Contract Size Consistency with other Cisco offers © 2010 Cisco and/or its affiliates. All rights reserved. More Flexibility Faster on-boarding Product Enhancements More device coverage Support more protocols Better portal performance Additional Assessments Cisco Confidential 7 Smart Care: New Deliverables Operational & Marketing Changes Customers with 1000+ devices SKU-based like SMARTnet © 2010 Cisco and/or its affiliates. All rights reserved. Cisco incentive programs: XIP Training, sales & technical tools Product Enhancements UCS & SMB devices Better portal performance SNMP3 protocol Medianet & IPv6 Cisco Confidential 8 Smart Care: Pricing & Profitability • 15% Rebate Import contract into portal and maintain 70% appliance deployment rate Stackable, in addition to attach/renew rebates • Higher Services Margin Higher renewal rate Additional revenue due to the discovery of uncovered devices and EOL Reduction in support calls Additional assurance you hit attach/renew New Business - Higher close ratio Professional Services Potential © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 Smart Care Margin Analysis Smart Care Margin Analysis Step 1: Enter Number of Customers 200 Step 2: Enter PMC Renewal Potential $10,000,000 Step 3: Enter Partner Average Renewal Rate 75% Step 4: Enter New Business Forecasted/Takeover $1,500,000 Step 5: Enter existing Attach/Renew Rebate % 2% Step 6: Examine and modify fields in the input column (noted in yellow) Renewals Avg Renewal Rate Partner Buy Profit Smart Care Rebates Deduct: Smart Care Support Costs Discovery of Uncovered Devices, EOS, EOL Attach/Renew Rebates Reduction in Support Costs (Faster Case Resolution) New Professional Service Contracts Additional New Business Profit © 2010 Cisco and/or its affiliates. All rights reserved. SmartNet Smart Care Add'l Profit $ Add'l Profit % $10,000,000 $10,000,000 $7,500,000 $8,500,000 $5,925,000 $6,715,000 $1,575,000 $1,785,000 $210,000 13.33% $1,007,250 $1,217,250 77.29% $1,007,250 $210,000 13.33% $42,000 $252,000 16.00% $118,500 $201,450 $334,950 21.27% $28,000 $362,950 23.04% $15,000 $377,950 24.00% $1,500,000 $1,875,000 $512,950 32.57% $1,693,500 $2,087,950 $512,950 32.57% Input 10% 23% 15% 15% $1,000 1% 4 5 25% Cisco Confidential 10 Tools for Success – Your BDM • Business Consultant • Services Model Analysis • On-Boarding • Positioning, Packaging and Pricing • Sales Training • Joint Sales Calls • Administration © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11 Summary Cisco Smart Care expands business opportunities by providing a proactive services platform on which partners can build the next generation of personalized services. Improve profitability by transitioning to a serviceled model based on higher profit margins and predictable recurring revenue Differentiate business offering by developing personalized services for commercial customers Increase customer loyalty by delivering an exceptional service experience Simplify contract maintenance by leveraging a single contract with auto-renew and auto-add features Cost-effectively grow service business through a collaborative go-to-market strategy with Cisco © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12