Cisco VP Discusses Cisco, Microsoft Strategy for Small and Medium Businesses

February 11, 2004

Cisco Systems and Microsoft Corporation have a history of successful collaboration in areas such as data center architectures and IP telephony, primarily focused on larger companies. The two companies also have a longstanding, shared vision and complementary product lines for small and medium-sized business (SMB) customers. Recently, Cisco and Microsoft launched an initiative to collaborate on SMB solution development and optimization, as well as marketing and channel programs. Peter Alexander, VP of Worldwide Commercial Market Segment for Cisco Systems, sheds light on the new initiative and how it will benefit channel partners and customers.

What are Cisco and Microsoft announcing?

Peter Alexander: Cisco and Microsoft are launching a stronger collaboration and a solid commitment to supporting the needs of SMB customers. In response to customer requests, we are making it easier for our channel partners to work together in a coordinated way to better serve the needs of small and medium businesses. We are also providing our channel partners with complete solutions to deliver to their SMB customers.

Is this the first time that Cisco has aligned itself with Microsoft?

Peter Alexander: Our relationship with Microsoft is not new, but this initiative adds an exciting new dimension. We are building on our prior collaboration with Microsoft to benefit and support Cisco channel partners serving the SMB market. Cisco and Microsoft have long had many of the same small and medium-sized business channel partners and customers. We will now be joining forces on SMB solution development and optimization, marketing, and channel programs. The relationship will make it easier for our partners to deliver comprehensive solutions to the SMB customer.

Why are Cisco and Microsoft stepping up their efforts to collaborate in the SMB market?

Peter Alexander: Microsoft and Cisco have similar sales organizations, channel strategies and complementary product lines for small and medium-sized business customers. In addition, more than one partner, and in some cases more than two partners, serve most SMB customers. Cisco recognizes that these customers are busy doing what they do best-growing their businesses. They need to obtain IT from the smallest number of sources, and they want integrated solutions and a single source of support. Currently, ad hoc partnering occurs between Cisco and Microsoft channel partners to help bring integrated solutions to customers. One of the goals of this initiative is to "think big" and collaborate to make both partner communities more successful, and to provide incentives and solution blueprints for them to work together in a more coordinated fashion. We want to enable channel partners to share information, become aware of deals, understand partner objectives and provide comprehensive solutions to the SMB market.

What will the two companies achieve through this collaboration?

Peter Alexander: Most important, the collaboration will make is easier for channel partners to provide value-added solutions to SMB customers based on the industry-leading Cisco secure network infrastructure and Microsoft award-winning applications. Cisco and Microsoft are providing channel partners with a roadmap and pre-configured, pre-tested architectures and solutions to help them deliver end-to-end solutions to SMB customers. The results for small to medium-sized businesses include improved profitability and productivity, and faster return on their IT investment.

How will Cisco and Microsoft channel partners benefit?

Peter Alexander: Our partners are seeking ways to increase their profitability and improve customer satisfaction. They also want new strategies and solutions for addressing the SMB market. This initiative enhances our partners' ability to provide end-to-end solutions that deliver tangible value, while affording the opportunity to provide additional services to SMB customers. Channel partners will be able to shorten the sales cycle and further develop their professional services practices, using our tools during multiple stages of their customer engagement - from the consulting phase, through solution deployment and support. Our blueprints will also give partners opportunities to deliver future solutions based on proven roadmaps as their customers' needs grow and change. Through this initiative, our channel partners will be able to solve small business customers' unique business needs and challenges, and address new opportunities that they might not have been able to in the past.

How will small to medium-sized business customers benefit?

Peter Alexander: Growing businesses need integrated technology offerings and applications that simplify and support their business processes. They also need the underlying technologies to support those applications. They want to make investments from as few sources as possible and they do not want to purchase and integrate individual components. Well-supported joint architectures and solutions will enable partners to better meet the needs of the SMB market, allowing small to medium-sized businesses to focus on their core competencies.

What are the deliverables that will emerge from this joint initiative?

Peter Alexander: First, we are teaming to develop pre-configured, pre-tested architectures and solutions to help drive partner success and make it easier for them to provide integrated solutions to their SMB customers. The two companies also have created a blueprint for collaboration that includes a unified approach and message for joint channel partners working with SMB customers. Initial results of the teamwork include a server and network platform offering as well as the Cisco IP Communications solution for Microsoft Customer Relationship Management (CRM). Additional solutions and joint offerings satisfying the needs of the SMB customer and available for channel partners will be announced in the future.

What is the server and network offering?

Peter Alexander: The new integrated server and network platform offering is specifically designed to increase the productivity and security of growing businesses. It is based on the Cisco 831 Broadband Router and Microsoft Small Business Server 2003 Standard Edition. The offering, available in many areas within Europe and soon available in the US under a single SKU, is designed for SMBs to increase their business efficiency through server-based solutions for e-mail, fax, database, shared Internet access, remote management and support. This offering will help SMBs maintain the security of their IT systems by reducing the threat of losing valuable intellectual capital to hackers while maintaining the confidentiality and integrity of the data within their network.

What is the Cisco and Microsoft CRM solution?

Peter Alexander: CRM is an area where channel partners have been asking for increased integration for their SMB customers. The customer care solution combines Cisco IP Communications with Microsoft CRM to enable a single, integrated view of all customer communications-via phone, email, or voicemail. The goal is to help enable SMBs to improve customer satisfaction, increase productivity, and gain a competitive edge.

What are the architecture blueprints?

Peter Alexander: The blueprints provide partners with the guidance they need for planning, building, operating and supporting end-to-end IT solutions for small and medium businesses. We created these solution blueprints for partners who want to provide their customers with dependable, secure and integrated IT solutions based on pre-tested and pre-configured designs. The architectures will serve as business growth resources allowing channel partners to enhance their position as expert and trusted advisors to their customers. The blueprints will be the foundation for Cisco and Microsoft channel partners to completely address the needs of their customers, and more effectively sell into the SMB market.