1. CISCO SOLUTION INCENTIVE PROGRAM (SIP) Program Overview
Aug 2005

2. 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

3. PARTNER PROFITABILITY
WW Channel Strategy
Business Solutions
Integrated Technologies
PARTNER PROFITABILITY
Technology Specialized
The focus is to improve partner profitability based on value-add capability
As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately.
Individual Products
VALUE-ADD CAPABILITY

4. PARTNER PROFITABILITY
WW Channel Strategy
Business Solutions
Integrated Technologies
PARTNER PROFITABILITY
Technology Specialized
The focus is to improve partner profitability based on value-add capability
As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately.
Individual Products
VALUE-ADD CAPABILITY

5. PARTNER PROFITABILITY
WW Channel Strategy
Business Solutions
Integrated Technologies
PARTNER PROFITABILITY
Technology Specialized
The focus is to improve partner profitability based on value-add capability
As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately.
Individual Products
VALUE-ADD CAPABILITY

6. Why Drive Solution Sales?
VALUE-ADD AND BUSINESS RELEVANCE
Solutions
Business- Centric
Fulfillment
Price and Delivery-Centric
Integration
Project Manager
Products and Technology
CEO
Vertical Solutions
CEO / CIO
Horizontal Solutions
Department Head
Enterprise Architecture
Technology- 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

7. Incentive Programs Rewards ADVANCED TECHNOLOGY Value Incentive
Program (VIP)
Rewards
Opportunity
Incentive
Program (OIP)
Solution
Incentive
Program (SIP)
INCREMENTAL OPPORTUNITIES
BUSINESS SOLUTIONS

8. 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
Rewards partners that integrate Cisco into their differentiated business solutions
The Cisco Solution Incentive Program (SIP) motivates the channel partner community to provide business solutions that leverage the power of an integrated network. SIP drives partner profitability by providing financial incentives, designed to reward opportunities delivering vertical and horizontal customer solutions that integrate non-Cisco applications and services with Cisco technology. The SIP is designed to encourage ecosystem collaboration to develop unique applications that deliver business relevant solutions to end customers.
Differentiates partners’ unique value: Solutions offer an effective approach to demonstrating a partner’s unique solution capabilities relative to other competitors.
Increases customer intimacy and satisfaction: Solutions-focused partners have an extensive understanding of their end customer business priorities, and deliver a customized portfolio of products and services.
Grows partner revenue with value-added services: With closer end-customer relationships, partners are better able to assess additional service offerings to address a customer’s needs.
Drives partner profitability: SIP increases partner profitability by providing a substantial financial incentive that can help off set the costs of solution deployment and development.

9. What Is a Solution Under SIP ?=
Partner Integration Skills
(Lifecycle Solution Services) +
3rd Party Business Application
Cisco Technology
Differentiated and Repeatable

10. Solutions Integration
SIP framework
Converged network
3rd Party
hardware
Consulting
Services
SIP Eligible
A network comprising these elements
above the line is eligible for the SIP reward
Solutions Integration 
Reference
architecture
3rd Party
application
Prof.
Services + + =
A network comprising only these elements
below the line is not eligible for SIP reward 
Network Integration
Non Eligible
Point products
Cisco
applications
Maintenance Services
Technology
Applications
Services
Pilot Solutions

11. Cisco Business Solution Positioning
Vertical Market
Vertical Market Requirement
End Users
Prepare, Plan, Design, Implement, Operate & Optimize
(PPDIO)
Cisco Certified Partner
Reference Architecture
ISVs / Ecosystem Partners
3rd Party Vendors
Cisco
Cisco Capital
Business
Solution
Industry solutions lead with targeted solution, tie to Enterprise architecture. Targeted Solution Focus examples:
COOP
ETTF
E-Radiology
Intelligent Retailing
Business Ready leads with architecture message, tie to how Industries benefit and Industry proof points. Architecture Focus examples:
Resilient
Virtual
Intelligent
Cisco’s Architecture
Customer Advocacy
Advanced
Technologies
Advanced
Technologies
Foundation
Technologies
Wireless
Security IP
Comms
SAN /
Optic
Routers
Switches

12. 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

13. SIP Benefits To Customer To Partner To Cisco
Creates greater intimacy and understanding of business imperatives
Adds business value to the network
Improves customer satisfaction
To Customer
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 value-add

14. PROGRAM FRAMEWORK

15. Program Workflow Pre-qualification (one time per solution) 1 2
Deal Registration (one per deal)
Evaluation (annual review) 1 2 3

16. Program Workflow Pre-qualification (one time per solution) 1 2
Deal Registration (one per deal)
Evaluation (annual review) 1 2 3
Partner submits Solution Business Plan
Program Council
validates solution
Business Plan
Pre-Qualified Partner (evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution

17. Program Workflow Pre-qualification (one time per solution) 1 2
Deal Registration (one per deal)
Evaluation (annual review) 1 2 3
Partner submits Solution Business Plan
Program Council
validates solution
Business Plan
Pre-Qualified Partner (evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution
Pre-qualified?
Field (CAM/AM) validate
registration
Program Mgr
validates
approve
deny
REJECT
Deal Protection
(review at 6 months) no
yes

18. Program Workflow Pre-qualification (one time per solution) 1 2
Deal Registration (one per deal)
Evaluation (annual review) 1 2 3
Partner submits Solution Business Plan
Program Council
validates solution
Business Plan
Pre-Qualified Partner (evaluated annually)
approve
deny
REJECT
Channel (CAM) review solution
Pre-qualified?
Field (CAM/AM) validate
registration
Program Mgr
validates
approve
deny
REJECT
Deal Protection
(review at 6 months) no
yes no
REMOVE
Met min. revenue:
SMB - $200K Enterprise - $1M
Met at least 70% of forecast?
yes
RENEW
Partners removed from program may not reapply for six months.

19. 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

20. 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

21. 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 the deal is first registered and approved under OIP, it is not eligible for SIP.

22. Solutions Example Vertical Market Applications Cisco Technologies
HealthCare
Nurse Call
Patient Monitoring
Location based services
Collaborative Care
PACS (E-Radiology)
FT Upgrades
WLAN + WCS
Security
IP Communications/Unified Communications
IP Wireless Phones
Call Manager
MeetingPlace / VT Advantage
Connected Real
Estate
Building Automation
IP based Physical security  ( access control, video surveillance, fire )
Converge applications that drive collaboration and increase productivity increase in workplace
WLAN
Retail
Customer Relationship Management
Billing POS
Warehouse Management System
Manufacturing
Supply Chain Management
Xtended Markup Language
Transportation
Logistic/Warehousing
Employee Resource Planning

23. APAC SIP Model Run pilot program for 6 month period, effective Q1 FY06
Target countries to include:
Australia
New Zealand
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)
India
Singapore
*based on current VIP% program rules

24. 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

25. How Do Partners Get Started
Visit
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: Each partner solution requires a business plan.
Partners will receive notification within 10 business days via .

26. 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:
Submit presales milestone documents to:
Deal Registration Approval Tool:

27. Presentation_ID
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