CISCO SOLUTION INCENTIVE PROGRAM (SIP)
Program Overview
Aug 2005
© 2005 Cisco Systems, Inc. All rights reserved.
1
Agenda
• Cisco Channel Strategy
• What is the Solution Incentive Program?
• Program Framework
• Expectations of the Partner
• Financial Impact to Partner
• How to Get Started
• How to Learn More
© 2005 Cisco Systems, Inc. All rights reserved.
2
WW Channel Strategy
PARTNER PROFITABILITY
Business Solutions
Integrated Technologies
Technology Specialized
Individual Products
VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved.
3
WW Channel Strategy
PARTNER PROFITABILITY
Business Solutions
Integrated Technologies
Technology Specialized
Individual Products
VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved.
4
WW Channel Strategy
PARTNER PROFITABILITY
Business Solutions
Integrated Technologies
Technology Specialized
Individual Products
VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved.
5
Why Drive Solution Sales?
VALUE-ADD AND
BUSINESS RELEVANCE
CEO
Vertical
Solutions
BusinessCentric
CEO /
CIO
Horizontal
Solutions
BusinessCentric
Department
Head
Enterprise
Architecture
Integration
TechnologyCentric
Project
Manager
Products and
Technology
Fulfillment
Price and
Delivery-Centric
 Provides business relevance to the network
 Creates budget rather than absorbing it
 Targets business decision makers who
typically control the networking budget
 Grants partners access to critical vertical
and horizontal market opportunities
© 2005 Cisco Systems, Inc. All rights reserved.
6
Incentive Programs
ADVANCED
TECHNOLOGY
Value Incentive
Program (VIP)
Opportunity
Incentive
Program (OIP)
INCREMENTAL
OPPORTUNITIES
© 2005 Cisco Systems, Inc. All rights reserved.
Rewards
Solution
Incentive
Program (SIP)
BUSINESS
SOLUTIONS
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Solution Incentive Program
• Rewards partners that integrate Cisco into their
differentiated business solutions
Differentiates partner unique value
Increases customer intimacy and satisfaction
Grows partner revenue with value-added services
Drives partner profitability
• Partners must pre-qualify their solutions prior to
receiving the program benefits
• The program offers eligible partners financial
incentives and better engagement opportunities
with Cisco sales teams
© 2005 Cisco Systems, Inc. All rights reserved.
8
What Is a Solution Under SIP ?
Solution
=
Partner Integration Skills
(Lifecycle Solution Services)
+
3rd Party Business Application
+
Cisco Technology
Differentiated and Repeatable
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SIP Eligible
SIP framework
Converged
3rd Party
Consulting
network
hardware
Services
A network comprising these elements
above the line is eligible for the SIP reward
Reference
3rd Party
Prof.
architecture
application
Services
Non Eligible
=
+
+
A network comprising only these elements
below the line is not eligible for SIP reward
Point
products
Cisco
applications
Technology
Applications
© 2005 Cisco Systems, Inc. All rights reserved.

Solutions
Integration
Maintenance
Services
Services

Network
Integration
Pilot Solutions
10
Vertical
Market
Requirement
Cisco Business Solution Positioning
Vertical Market
End Users
Prepare, Plan, Design, Implement,
Operate & Optimize
(PPDIO)
Cisco Capital
Business
Solution
Reference Architecture
3rd Party Vendors
Cisco
Certified
Partner
ISVs /
Ecosystem
Partners
Cisco’s Architecture
Customer Advocacy
Advanced
Technologies
Wireless Security
© 2005 Cisco Systems, Inc. All rights reserved.
Advanced
Technologies
IP
Comms
SAN /
Optic
Cisco
Foundation
Technologies
Routers Switches
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SIP Objectives
• Grow incremental revenue in critical markets
• Boost partner profitability for resellers
integrating Cisco into the solution sale
• Increase the business relevance
of the network
• Expand the usage/need for network bandwidth
• Support the channel partner value model
© 2005 Cisco Systems, Inc. All rights reserved.
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SIP Benefits
Creates greater intimacy and
understanding of business
imperatives
Adds business value to the
network
Improves customer satisfaction
To Customer
To Partner
To Cisco
Rewards solution investment
Provides differentiation
Improves profitability
Increases value-add
opportunities
Increases business relevance
of networking
Creates budget for networks
Improves partner profitability
Encourages channel focus on
13
value-add
© 2005 Cisco Systems, Inc. All rights reserved.
PROGRAM FRAMEWORK
© 2005 Cisco Systems, Inc. All rights reserved.
14
Program Workflow
1 Pre-qualification (one time per solution)
2 Deal Registration (one per deal)
3
Evaluation (annual review)
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15
Program Workflow
1 Pre-qualification (one time per solution)
Partner submits
Solution Business
Plan
Channel (CAM)
review solution
Business Plan
Program Council approve Pre-Qualified
validates solution
Partner
(evaluated
annually)
Business Plan
deny
REJECT
2 Deal Registration (one per deal)
3
Evaluation (annual review)
© 2005 Cisco Systems, Inc. All rights reserved.
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Program Workflow
1 Pre-qualification (one time per solution)
Channel (CAM)
review solution
Business Plan
Partner submits
Solution Business
Plan
Program Council approve Pre-Qualified
validates solution
Partner
(evaluated
annually)
Business Plan
deny
REJECT
2 Deal Registration (one per deal)
Pre-qualified?
yes
Field (CAM/AM)
approve
validate
registration
no
REJECT
3
deny
REJECT
Program Mgr
validates
registration
approve
Deal Protection
(review at
6 months)
deny
REJECT
Evaluation (annual review)
© 2005 Cisco Systems, Inc. All rights reserved.
17
Program Workflow
1 Pre-qualification (one time per solution)
Channel (CAM)
review solution
Business Plan
Partner submits
Solution Business
Plan
Program Council approve Pre-Qualified
validates solution
Partner
(evaluated
annually)
Business Plan
deny
REJECT
2 Deal Registration (one per deal)
Pre-qualified?
yes
Field (CAM/AM)
approve
validate
registration
no
deny
REJECT
3
Program Mgr
validates
registration
approve
Deal Protection
(review at
6 months)
deny
REJECT
REJECT
Evaluation (annual review)
Met min. revenue:
SMB - $200K
Enterprise - $1M
no
© 2005 Cisco Systems, Inc. All rights reserved.
REMOVE
yes
Met at least
70% of
forecast?
no
REMOVE
yes
RENEW
Partners removed from program
may not reapply for six months.
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SIP Prequalification: Partner Pre-requisites
• Cisco Certified Partner
(Gold, Silver, Premier)
• Specialized in appropriate
technology identified as part
of the solution definition
• Has existing installed base of
customers in target market
• Documented Business Plan for
driving solution
• Selling model targets Business
Decision Maker
• Sales team is solution focused
• Provides unique solution
competency
© 2005 Cisco Systems, Inc. All rights reserved.
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SIP Prequalification: Solution Criteria
• Repeatable
• Includes Business Relevant Application
• Includes Solution Support Services
• Includes Cisco Technology (recommend
AT)
• Expands need for network bandwidth
• Reference Architecture includes Cisco
• Cisco product and services is no more
than 70% of solution opportunity
• Two reference accounts that have
installed solution within past 12 months
• Minimum revenue per year (list to
Cisco): $200K in SMB or $1M in ENT
Minimum deal registration transaction size
(list to Cisco): $20K in SMB and $100K in ENT
© 2005 Cisco Systems, Inc. All rights reserved.
20
SIP Deal Registration: Requirements
• Partner solution prequalified for the SIP
• Registration must be for partner-approved solutions only
• Partner must be a Cisco Gold, Silver, or Premier Certified Partner
• Incremental business generated by partner
• Minimum deal size for Cisco products and services:
SMB/Commercial $20K at list price
Enterprise $100,000 at list price
• Partner completes and documents presales milestones:
Identify primary decision makers, budget, and timing of opportunity
Determine end-customer business issues and requirements
Perform end-customer phone and face-to-face sales calls
Provide high-level design to customer
• Registration must be prior to an end customer RFP to be eligible
NOTE: Partners CANNOT stack OIP and SIP
• SIP discount accounts for partner “hunting” efforts
• All deal registration based programs protect the first partner
to register the deal and complete the pre-sales milestones.
If the deal is first registered and approved under SIP, it is not eligible for OIP.
If Allthe
© 2005 Cisco Systems, Inc.
rightsdeal
reserved.is first registered and approved under OIP, it is not eligible for SIP.
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Solutions Example
Vertical Market
HealthCare
Connected Real
Estate
Applications
•
•
•
•
•
Nurse Call
Patient Monitoring
Location based services
Collaborative Care
PACS (E-Radiology)
•
•
Building Automation
IP based Physical security ( access control, video
surveillance, fire )
Converge applications that drive collaboration and
increase productivity increase in workplace
•
Cisco Technologies







FT Upgrades
WLAN + WCS
Security
IP Communications/Unified
Communications
IP Wireless Phones
Call Manager
MeetingPlace / VT Advantage



WLAN
Security
IP Communications/Unified
Communications
Retail
•
•
•
Customer Relationship Management
Billing POS
Warehouse Management System


WLAN
IP Communications/Unified
Communications
Manufacturing
•
•
•
Supply Chain Management
Xtended Markup Language
Warehouse Management System


WLAN
IP Communications/Unified
Communications
Transportation
•
•
Warehouse Management System
Supply Chain Management


WLAN
IP Communications/Unified
Communications
Logistic/Warehousing
•
•
•
Warehouse Management System
Employee Resource Planning
Supply Chain Management


WLAN
IP Communications/Unified
Communications
Security
© 2005 Cisco Systems, Inc. All rights reserved.

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APAC SIP Model
• Run pilot program for 6 month period, effective Q1 FY06
• Target countries to include:
• Australia
• India
• New Zealand
• Singapore
• China
• Korea
• Taiwan
• SIP rebate of 4% list,
• SIP stackable only with VIP*
• SIP is a backend rebate program
• SIP applicable to all products and must include AT
• Mandatory maintenance attachment on all products for 1 year
minimum (Cisco Shared Support Program or branded resale)
© 2005 Cisco Systems, Inc. All rights reserved.
*based on current VIP% program rules
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Expectations of the Partner: Registration
• Solution Pre-qualification Deliverables
Business Plan
Reference Architecture
Installed Base
• Deal Registration Deliverables
Customer name & contact info for opportunity
Opportunity description
Cisco products included
Estimated budget & decision date
Sales Visit Report
High Level Design
© 2005 Cisco Systems, Inc. All rights reserved.
24
How Do Partners Get Started
• Visit http://www.cisco.com/go/ap/sip
• Review online program documents (presentation,
program rules, Q&A) and download business plan
• Partners send completed business plan to their CAM
and the SIP alias: apac_sip@cisco.com. Each
partner solution requires a business plan.
• Partners will receive notification within 10 business
days via e-mail.
© 2005 Cisco Systems, Inc. All rights reserved.
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How to Learn More
• SIP Website: http://www.cisco.com/go/ap/sip
Presentation
Q&A
Program Rules
User Guide
Business Plan Template
• Program alias for submitting solution business plan and
general questions:
apac_sip@cisco.com
• Submit presales milestone documents to:
apac_sip@cisco.com
• Deal Registration Approval Tool:
http://www.cisco.com/go/deals
© 2005 Cisco Systems, Inc. All rights reserved.
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Presentation_ID
© 2004 Cisco Systems, Inc. All rights reserved.
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