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© 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 1 Cisco ® Value Incentive Program 11 Commitment to Partner Profitability.

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Presentation on theme: "© 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 1 Cisco ® Value Incentive Program 11 Commitment to Partner Profitability."— Presentation transcript:

1 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 1 Cisco ® Value Incentive Program 11 Commitment to Partner Profitability February 7, 2008 Aug 11, 2005

2 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 2 Agenda Program Foundations Security Overview Unified Communications & Unified Communications Express Overview Advanced Wireless LAN Overview VIP Period 11 Program Summary & Timeline Global CSAT Surveys PRV – Partner Rebate View VIP Program Future Qualification

3 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 3 Program Foundations Cisco ® Value Incentive Program is a crucial component of the Cisco commitment to partner profitability Voice, Wireless LAN, and Security products included Ongoing program with 6-month payouts Reviewed for periodic enhancements Should evolve with customer and market needs Should build and reward partner competency in areas valued by the customer Should promote the correct behavior and be forward-looking Should align direct sales force and partner incentives Promotes the value of the integrated Cisco infrastructure advantage (Intelligent Information Network [IIN])

4 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 4 Security Cisco ® VIP Period 11 Program Specifics

5 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 5 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 Todays security needs are more complex Todays 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, and network admission control) will see rapid growth (30 to 50%) Core security solutions (Firewall and VPN) are now well established and part of the network (5 to 10% growth) End users are increasingly selecting vendors and partners based on security competence and the capability to deliver advanced security solutions

6 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 6 Channel Imperatives for Security Channel Goals Promote partner growth and profitability Help ensure that 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 lifecycle and professional services Encourage core security solutions with all network sales

7 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 7 Cisco ® VIP 11 Objectives To accelerate the building of advanced security practices: Maintain consistent incentive rebate percentages Support partners in their development of practices for leading-edge, more complex security technologies Maintain the number of product families in both the foundation and advanced categories

8 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 8 Cisco ® VIP Security Program: Historical Evolution VIP 1VIP 2VIP 3VIP 4VIP 5VIP 6VIP 7VIP 8VIP 9VIP 10VIP 11 Partner ProfitabilityXXXXXXXXXXX Builds Security Practice XXXXXXXXXXX Broadens Security Focus XXXXXX Base Rebate10% 12% 7% 14% 7% 14% 6% 14% 6% 14% 6% 14% 6% Growth Rebate2% Cisco Gold Certification Rebate +1% Cisco Master Specialization Rebate +1% +2%

9 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 9 Cisco ® VIP 11 Security Rebate Specialization: Must maintain valid Advanced Security Specialization for the entire program Sales Volume: Minimum bookings: US$20,000 net bookings in qualifying Cisco Security SKUs for specified dates Customer Satisfaction: Average customer satisfaction score: 4.31 (APAC only) or higher on all surveys received for specified dates Simplified requirements; only three components: RebateRequirementSecurity Foundation SKUsMeet program exit criteria6% Category Foundation product shipments Advanced SKUsMeet program exit criteria14% Category Advanced product shipments Gold Certified Partners Meet program exit criteria1% product shipments Master Specialized Partners Meet program exit criteria2% product shipments

10 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 10 Partner Benefits of Cisco ® VIP 11 Security Program Program stability: Cisco has maintained the two- category rebate structure ROI: Cisco VIP 11 rebates help offset startup costs (training, etc.) related to selling advanced products Maintain higher reward for Cisco Gold Certified and Master Specialized investments

11 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 11 Unified Communication Cisco ® VIP Period 11 Program Specifics

12 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 12 Voice Market Dynamics Unified communication has become mainstream 2005: The crossover yearmore Unified Communications than time-division multiplexing (TDM) Commercial use developing and fastest growing Customer demand for Unified Communications applications is accelerating Faster growth of applications than infrastructure Strong Unified Communications voice infrastructure growth rate will continue (30 to 35%) Unified Communications applications growth rates will be high (50 to 60%)

13 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 13 Channel Imperatives for Unified Communications Channel Goals Build channel capacity and capability of voice applications Up-sell 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 Promote network sales with Unified Communications Use Cisco ® VIP incentives, applications, and professional services to promote partner growth and profitability

14 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 14 Cisco ® VIP 11 Objectives: Unified Communications Continue to accelerate building of Unified Communications applications practices by providing increased incentives for applications Support partners in development of practices for leading-edge, advanced Unified Communications applications Simplify program structure by eliminating previous attach rate design Move to simply paying for applications at a higher rate than for non-applicationsno more attach rate threshold Continue to reward Cisco VIP partners for basic Unified Communications sales and for voice-enabled integrated infrastructure sales

15 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 15 Cisco ® VIP Unified Communications Program: Historical Evolution VIP 1VIP 2VIP 3VIP 4VIP 5VIP 6VIP 7VIP 8VIP 9VIP 10VIP 11 Partner ProfitabilityXXXXXXXXXXX Builds IPC Practices XXXXXXXXXXX Application FocusXXXXXX Base Rebate: Foundation* 10% 20% 8%16%17% 15% Incentive Rebate: Advanced* 2% 20% 21% Applications Rebate +2– 6% +4– 6% Cisco Gold Certification Rebate +1% Cisco Masters Specialization Rebate +1% +2%

16 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 16 Cisco ® VIP 11 Unified Communications Rebate RebateRequirementUnified Communications Foundation SKUsMeet program exit criteria15% Category Foundation product shipments Advanced SKUsMeet program exit criteria21% Category Advanced product shipments Gold Certified Partners Meet program exit criteria1% product shipments Master Specialized Partners Meet program exit criteria2% product shipments 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 Cisco UC SKUs for specified dates Customer Satisfaction: Average customer satisfaction score: 4.31 (APAC only) or higher on all surveys received for specified dates

17 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 17 Cisco ® VIP 11 Unified Communications Express Rebate RebateRequirementUnified Communications FoundationMeet program exit criteria10% Category Foundation product shipments AdvancedMeet program exit criteria16% Category Advanced product shipments Gold Certified PartnersMeet program exit criteriaNA Master Specialized Partners Meet program exit criteriaNA 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 Cisco UC Express SKUs for specified dates Customer Satisfaction: Average customer satisfaction score: 4.31 (APAC only) or higher on all surveys received for specified dates

18 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 18 Cisco ® and Partner Benefits 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 a Unified Communications purchase Accelerates the Unified Communications market adoption rate Aligns partner rebate with that of the Cisco sales force compensation model Provides funding to support partners investment in voice application practices

19 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 19 Wireless LAN Cisco ® VIP Period 11 Program Specifics

20 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 20 Wireless Spending Source: Goldman Sachs, IT Spending Report, July 2006 2007: The Year of Business Mobility

21 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 21 Wireless Networks Cisco ® Outdoor Wireless Solutions

22 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 22 Cisco ® VIP 11 Wireless LAN Rebate RebateRequirementUnified Communications FoundationMeet program exit criteria3% Category Foundation product shipments AdvancedMeet program exit criteria8% Category Advanced product shipments Gold Certified Partners Meet program exit criteria1% product shipments Master Specialized Partners Meet program exit criteriaNA 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 Cisco WLAN SKUs for specified dates Customer Satisfaction: Average customer satisfaction score: 4.31 (APAC only) or higher on all surveys received for specified dates

23 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 23 Cisco ® VIP 11 Program Summary

24 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 24 Enrollment CriteriaAPAC Theater Unified Communications pre-requisites Advanced Unified Communication Specialized at enrollment Maintain specialization through the entire duration of the program Obtain Partner Access onLine (PAL) for sending customer satisfaction surveys No FAST START allowed 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) for sending customer satisfaction surveys No FAST START allowed Partners may only enroll in either Unified Communications or Express Unified Communicationspartners may not enroll in both. Partners cannot change between Unified Communications and Express Unified Communications at anytime during the program period. However, partners may change at the start of the next VIP period.

25 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 25 Enrollment CriteriaAPAC Theater Security pre-requisites Advanced Security Specialized at enrollment Maintain specialization through the entire duration of the program Obtain Partner Access onLine (PAL) tool for sending customer satisfaction surveys No FAST START allowed Wireless LAN pre-requisites Advanced Wireless LAN Specialization at enrollment Maintain specialization through the entire duration of the program Obtain Partner Access onLine (PAL) tool for sending customer satisfaction surveys No FAST START allowed

26 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 26 Exit Criteria Summary for Cisco ® VIP Period 11 WirelessUnified Communications Security CSAT Score CSAT Surveys 4.31 or Higher (APAC) 4 + 1 per $250K Above $500K (UC & Security) 2 + 1 per $125K Above $150K (UC Express & WLAN) Maximum 20 Surveys Bookings Minimum $15K Q3 Entry $7.5K Q4 Entry $25K (UC)Q3 Entry / $15K (UCE)Q3 Entry $12.5K (UC)Q4 Entry / $7.5K (UCE)Q4 Entry $20K Q3 Entry $10K Q4 Entry Specialization (Required: Partner Enrollment July 26, 2008) Cisco Advanced Wireless LAN Cisco Advanced Unified Communications Cisco Express Unified Communications Cisco Advanced Security 1 st Payout Date for Cisco VIP 11 Approximately October 2008 for products booked by July 26,2008 and shipped before August 20, 2008 2 nd Payout Date for Cisco VIP 11 Approximately December 2008 for product booked by July 26, 2008, and shipped between August 20, 2008 and October 25, 2008

27 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 27 Cisco ® VIP 11 Timeline Program Period 11: January 27, 2008July 26, 2008 Re-enrollment Required: For Cisco VIP 10 partners Enrollment Period (for New and Existing Partners): - February 10 to February 29, 2008 for Q3 & Q4 - April 28 to May 16, 2008 for Q4 only CSAT Survey Period: Start: January 19, 2008 End: July 11, 2008 Payout Dates: - 1 st check week of October/November 2008 - 2 nd check week of December 2008

28 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 28 Accelerating Application Success Cisco ® IP Communications Cisco IP Contact Center Cisco Unity ® Messaging Cisco Rich Media Training material can be found at: Cisco VIP homepage: www.cisco.com/go/vipwww.cisco.com/go/vip Numerous VoDs, white papers, solutions sales guides, ROI tools, and training programs are available to support partner applications success

29 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 29 Cisco ® VIP Tool Online tool for channel account managers and partners to manage enrollment and re-enrollment and monitor program status URL: http://www.cisco.com/go/viptoolhttp://www.cisco.com/go/viptool Re-enrollment for Cisco VIP 10 partners All Cisco VIP 10 partners need to re-enroll between February 10 and February 29, 2008 1.Go to http://www.cisco.com/go/viptool.http://www.cisco.com/go/viptool 2.Select your company profile that shows pending re-enrollment status. 3.You will be prompted with the following message: Do you want to re-enroll in Cisco VIP for this program period? Click Yes. 4.Click to accept Cisco VIP terms and conditions. 5.Review and update application. 6.Check box to accept Cisco VIP 11 program rules. 7.Submit application.

30 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 30 Cisco® VIP Tool: Re-enrollmentNo Changes Partners with status of Re- enrollment required must enroll by February 29 Partners that do not re-enroll will be rejected from Cisco VIP 11 Select profile Click Yes to re-enroll Click to accept terms and conditions Verify that partner read and understands program rules Submit application ABC

31 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 31 Cisco ® VIP 11 Program Customer Satisfaction Surveys

32 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 32 Customer Satisfaction Schedule Cisco ® VIP11 Survey Contacts Now JANFEBMARAPRMAYJUN January 19, 2008 Begin sending surveys to qualified Cisco VIP 11 contacts Using PAL, you can schedule and send surveys in FY08 to the same contacts surveyed in Cisco FY07 survey year Choose PAL > Send Surveys and scroll to bottom of screen; select the No Surveys Scheduled/Sent filter July 11, 2008 Survey Deadline All survey responses must be received by 5:00 p.m. (Pacific Time): No exceptions JUL Important Dates for Cisco VIP 11 Survey Sending in Cisco PAL

33 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 33 Customer Satisfaction Qualifications for CSAT valid survey Surveys sent by partner to end customer Respondent selects Yes to one or both of the survey customization questions at the beginning of the survey Respondents who answer No will never be presented with the partner-related questions, and the responses will be stored with the Cisco PAL "no partner identified" classification Respondents can answer No or Dont Know for most of the additional survey customization questions to reduce their survey response times

34 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 34 Critical that the respondent answers YES to the following question to provide a pre-sales rating Critical that the respondent confirms the respective technology (ies) they received from the partner. The partner pre-selects the technologies prior to sending the survey to the respondent. (Insert Partner Name) Critical that the respondent provides pre-sales satisfaction rating

35 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 35 (Insert Partner Name) Partner Name) Critical that the respondent answers YES to the following question to provide a post-sales rating if support is provided by partner Critical that the respondent answers YES to the following question to provide a post-sales rating if support is provided by partner Critical that the respondent provides post sales satisfaction rating

36 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 36 Customer Satisfaction – What counts towards VIP Survey sent by PartnerCounts for Certification Counts for VIP Security Counts for VIP UC Counts for VIP Wireless UC, Security & Wireless NOT selected YNNN UC selected; Security & Wireless NOT selected YNYN UC & Wireless NOT selected; Security selected YYNN UC, Security & Wireless selected YYYY Survey was NOT sent by Partner Counts for Certification Counts for VIP Security Counts for VIP IPC All scenariosYNNN Response must be received by 5:00 p.m. PT on July 11, 2008

37 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 37 Customer Satisfaction VIP Tool: Survey Status Send Surveys through PAL tool View VIP results through VIP Tool Summary requirements and results information Detail Results Report

38 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 38 Partner Rebate View

39 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 39 Partner Rebate View Tool Benefits Partner Rebate View is a reporting tool that provides daily visibility on your progress-to-date in the current Value Incentive Program VIP eligible bookings details are transitioning from the VIP Tool to the Partner Rebate View Partner Rebate View benefits: –Daily updates throughout the program period –Visibility to SKU-level bookings details for eligible and ineligible orders –Ability to download SKU-level bookings details –Visibility on Reseller to Distributor POs –Expanded access to data for two previous VIP periods

40 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 40 Eligible & Ineligible Bookings are accessed by selecting these tabs Partner Rebate View – Bookings Summary

41 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 41 Partner Rebate View Navigation Select the program from the drop down list Select a technology from the drop down list Press Go to update your view

42 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 42 VIP Program Future Qualification Partners must have Premier certification in addition to their associated Advance Technology Specialization beginning in VIP12

43 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 43 Cisco ® VIP Period 11 Support Open a case on partner help online: www.ciscopartnerhelp.com Select the Programs category and the Value Incentive Program subcategory when submitting your case Cisco VIP URLs Cisco VIP Tool: www.cisco.com/go/viptoolwww.cisco.com/go/viptool Cisco Partner Rebate View (PRV) : https://tools.cisco.com/mbrre/saw.dll?Dashboard Cisco PAL Tool: www.cisco.com/go/palwww.cisco.com/go/pal

44 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 44 Cisco ® VIP 11 Period Partner Call to Action Make sure you enroll in Cisco VIP 11 Work with your channel account manager to make full use of training and enablement tools available from Cisco Make application attach rate and security mix part of your daily sales practice Celebrate success together

45 © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 45


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