SAN JOSE, Calif., March 5, 2001 - Cisco Systems, Inc., the worldwide leader in networking for the Internet, today announced its new Channel Partner Program. The new program provides channel partners worldwide with the framework to succeed in the next market evolution of value-based business models.
"Just as channel partners want strong products and solutions that satisfy the evolving technology market, they also need to engage with vendor business models that are in-step with the new paradigms," said IDC channels analyst Ken Presti. "The new Cisco certification program is designed to focus attention on higher margin opportunities that more effectively address the real needs of the customers."
"With nearly ninety-percent of our company's revenue going through the channel, our commitment to channel partner success has never been stronger," said Tushar Kothari, vice president of Worldwide Channels at Cisco Systems. "Our channel partners are looking for new ways to break away from the competition and take advantage of today's unprecedented market opportunities. We have evolved our channel program to better support our partners and to help them create a sustainable business model for the Internet economy."
Creating A Sustainable Business Model
Cisco has identified several key market issues that it needs to address in order to help partners create a sustainable business model. These include helping partners focus on value-added services, enhancing technology-specific expertise, providing a balanced approach to technical staffing and improving customer satisfaction.
Focus On Value-Added Services
To help accelerate the transition to value-added services, Cisco has incorporated its specialization program into the new Channel Partner Program. Specializations enable channel partners to focus on value-added services by providing them with a proven framework for developing a technology specific expertise.
"Our current revenue mix is 60:40 favoring hardware. We are looking to transform our business to favor the more lucrative services model," said Vytas Kasniunas, sales manager, Structure Technologies. "Incorporating specializations into the new program will help accelerate our transition."
Enhancing Technology Specific Expertise
The increased complexity of today's networking equipment requires channel partners to focus and develop an expertise around a specific technology. Cisco specializations ensure channel partners have the expertise to plan, design, implement and support a specific networking technology.
"Being the first to develop expertise around an emerging technology is a vital competitive advantage," said John Freres, president of N2N Solutions. "Cisco specializations not only provide the world-class training to help accelerate the development of a technology specific expertise, but they also garner tremendous credibility with our customers. Incorporating specializations into the new program supports N2N's continuing commitment to being the first to obtain a specific expertise around the latest Cisco technology."
Balanced Approach to Technical Staffing
The previous Cisco Channel Partner Program emphasized employing individuals who have earned a Cisco Certified Internetworking Expert (CCIE) certification. While CCIEs remain an important criterion for channel certifications, the new more flexible program recognizes the broader array of individual technical certifications that Cisco has developed over the last three years. The program now balances the technical talent requirement across the entire selection of Cisco associate, professional and expert certified individuals.
"Hiring and retaining technical talent is a challenge for everyone in our industry," said, Bob Norton, vice president, Select Inc. "We find by focusing on specific solutions, Cisco certified associates and professionals have the skills and knowledge to address most of our clients' needs, allowing us to more effectively utilize the services of our CCIEs. The new program's balanced emphasis on technical staffing proves Cisco is committed to helping us succeed."
Improving Customer Satisfaction:
As part of the new program, Cisco provides its certified partners access to the same tools and "best practices" it uses to monitor and improve its own customer satisfaction. This proven program feature will enable channel partners to improve customer satisfaction and break away from the competition.
"MSI prides itself on delivering the highest level of customer satisfaction," said Doug West, vice president, Internetworking Business Unit at MSI Systems Integrators. "I am very excited about the customer satisfaction component of the new program because it provides us with yet another way to differentiate ourselves."
Program Overview
Achieving a Premier, Silver or Gold certification under the new Cisco Channel Partner Program guidelines is based on a channel partner's ability to fulfill a minimum set of requirements in the following areas: core requirements, consisting of personnel, support infrastructure and customer satisfaction; specialization requirements, recognizing a partner's technical expertise in specific technologies; and extra credit requirements, exceeding the minimum requirements. Effective July 2, 2001, channel partners can apply for certification under the new Cisco Channel Partner Program guidelines. To learn more about the Cisco Channel Partner Program go to www.cisco.com/go/partneroverview.
