Cisco Announces Communications Packages for Smaller Businesses

September 19, 2005

Good things are coming in small packages for Cisco Systems customers. Cisco recently announced 12 new voice and data communications products and over 10 new versions or enhancements to existing products for small and mid-sized businesses. Most importantly, for the first time Cisco is offering these items and others together in complete, integrated packages that greatly reduce the complexity and cost of deploying Internet protocol-based networks, helping smaller businesses set up data and voice communications to meet all their needs.

News@Cisco spoke with Cisco's senior vice presidents Kathy Hill and Don Proctor about these new products and packages for small and mid-sized businesses.

What makes this latest product announcement important for smaller businesses?

Don Proctor: For the first time we have assembled complete packages of new and existing communications networking products--plus tailored services, support and financing programs--that greatly ease deployment costs and complexities. They are as close to "off-the-shelf" communications systems as you can get. One of the things we heard a lot from smaller businesses is that they just don't have the staff to set up a complete converged communications system, which encompasses a secure data network with voice communications. With this latest round of products and services, we have filled in the blanks and put the missing pieces into place. Now, we can offer end-to-end packages to smaller business, including services, financing, and channel partner support, so both installation and management can be simple and fast.

From the voice standpoint, we've focused on developing new applications to complement our CallManager and CallManager Express IP Communications systems. We're introducing an enhanced voicemail product, Unity Connection, designed for medium-sized businesses. It incorporates speech recognition and a number of advanced features. And we've developed a mid-market conferencing and collaboration offering, Cisco MeetingPlace Express, which helps our smaller customers collaborate globally.

Kathy Hill: To create these packages, we needed to develop several key hardware and software products. These were the missing pieces to the puzzle. On the switching equipment side, the most significant product is the Cisco Catalyst Express 500 switch family. We built the Catalyst Express from the ground up specifically for businesses with 20 to 250 employees who want to run or are planning to run data networks and IP phone systems on one network. Unlike most switches on the market, the Catalyst Express is neither a retrofit of an existing switch for larger corporations nor is it a rudimentary switch without sophistication or scalability. The Catalyst Express offers the exact capabilities smaller businesses need to securely run voice, data, and even video over their IP LANs.

Just as importantly, we have pulled all of the products and packages together with new programs and support for our channel partners--the resellers, systems integrators, consultants and other companies that sell and install our products. We have given them better tools, better financing packages, and other programs to make it easier for them to cost-effectively help small and mid-sized companies.

Cisco has historically been very focused on creating networking equipment for the world's largest corporations. Why does Cisco believe that these new products and services are appropriate for smaller and mid-sized businesses?

Don Proctor: We've been increasingly focused on these markets for several years, and each product and service is the result of exhaustive conversations with small and medium-sized businesses, as well as our channel partners that them Based on our experience, we believe we have a very clear sense of what these companies need in networking equipment and services. Also, many smaller companies who are already our customers have provided us with feedback on how we can improve our products to better meet their needs. The message is clear from small and medium-sized businesses. They recognize the quality of our technology, but they need products that are specifically crafted for their businesses.

What new tools have your created to make it easier for your channel partners to install and manage voice applications?

Don Proctor: To bring it all together, we've created a variety of graphical user interface tools for assisting in the set up and management of our communications systems for smaller businesses. These are the real lynchpins to our offerings, since they give smaller businesses and the consultants and systems integrators that serve them easy to use tools that greatly speed time to deployment, and, as a result, lower the cost of installation. Instead of working with text-based, command-line programming, our customers and partners can use such products as the Cisco Quick Configuration Tool, the Cisco Voice Provisioning Tool, or the Ciscoworks IP Communications Operations Manager, to name a few, to manage their networks. These software programs complement our newly updated Cisco Network Assistant, which helps configure switches, routers, and wireless access points from a single graphical user interface. The Network Assistant aids in detecting errors and fixing common problems with just a click or two of the mouse.

Smaller organizations recognize the value of IP networks, wireless LANs, and IP-based phone systems, but security is such a concern that it has inhibited the adoption of new networking capabilities. What is Cisco doing to address security issues for smaller businesses?

Kathy Hill: You can't design communications gear these days without asking, "How do we protect it?" Security is a crucial component of any communications system we create for smaller businesses. These businesses have the same concerns as bigger businesses, but they don't have the staff and resources to counter all the sophisticated types of attacks that can happen these days. So the key has been to provide the same class of protection we've created for larger business networks but make it easier for smaller businesses to install and manage. Products such as our Integrated Services Routers (ISRs), which we announced earlier this year, and the Catalyst Express both support layered security for smaller businesses. More importantly, we've created intelligent applications, such as the Cisco Network Assistant, that do the technical background work of what functions to turn off or on depending on the kind of security you want and the type of network you have. Instead of having to program each security function through a text-based, command-line interface, our customers just click on a toggle that looks like a volume control to chose a level of security from high to low. The application then activates various network security controls according to the level selected. Very simple, very non-technical, very quick; the network does the configuration but the customer has complete control over the parameters.

How else is Cisco making it easier for small and medium-sized businesses to take advantage of the power of IP-based networking?

Don Proctor: Additions to our support and financing programs have really made a difference for smaller customers and our channel partners who support them. We've created "right-sized" offerings for technical assistance that are within the limits of a smaller business' budget and needs. We've also created easy leasing programs, as well as various financing packages and trade-in programs for data network, IP phone systems, and other equipment purchases. Finally, we've initiated an array of programs and tools to help our channel partners-the resellers, VARs, systems integrators, and consultants-that sell and install Cisco IP Communications systems. All together, these offerings make it much easier for smaller companies to invest in IP communications packages that will help their companies for years to come.

Does this latest round of products complete Cisco's goals for creating new products to serve small and medium-sized businesses?

Kathy Hill: Not at all. We have extensive plans to enhance and expand our business communications offerings for small and medium businesses. We fully intend to exceed the expectations of our partners and customers by delivering purpose-built products that are developed, tested and built together to work as one system. Our CEO John Chambers made a commitment that Cisco will be investing over $2 billion in developing dozens of new networking products for smaller businesses. We're just getting warmed up.