SAN JOSE, Calif., July 19, 2004 - As part of its SMB Class solutions initiative to grow its leadership position in the small and medium-sized business (SMB) market, Cisco Systems, Inc., today announced the creation of the SMB Select Partner designation to its award-winning* Cisco® Channel Partner Program. This new designation will differentiate, recognize and reward Cisco channel partners that have a focused business practice selling into the SMB market. The designation demonstrates to customers that the SMB Select Partner understands and supports networking solutions for small and medium-sized companies.

"The SMB market represents a tremendous growth opportunity for both Cisco and our channel partners," said Edison Peres, vice president, Advanced and Core Technologies, Worldwide Channels at Cisco Systems®. "We have gathered extensive global market intelligence to ensure we understand the market opportunities down to the local level and are introducing a strategy that brings together the appropriate resources, solutions, training and dedicated programs to help drive mutual success in the SMB market. With today's announcement we are entering the first phase of an aggressive, strategic thrust to help our channel partners better deliver SMB Class solutions and increase their SMB market share."

"The channel partner is the key element to the success of any vendor that aims to be a SMB market leader," said Helen Chan, Small and Medium Strategies senior analyst at the Yankee Group. "To that end, vendors must be committed to the channel and substantiate their commitment with actions that empower partners' success. Vendors must educate, motivate and help partners competitively differentiate themselves to SMBs and provide SMB customers with proven solutions. Cisco, with its new SMB Select Program and newly launched SMB Class solutions, is one of the few vendors that really understands the SMB channel."

Announced April 22 of this year, Cisco SMB Class solutions provide proven technology solutions and comprehensive services to help SMBs build secure, reliable and flexible networks that can scale as their companies grow. The SMB Select Partner program helps to fulfill the delivery of this program by helping Cisco partners implement SMB Class solution offerings.

Program Benefits

Cisco channel partners that meet the SMB Select Partner criteria can differentiate themselves in the marketplace and gain access to a tailored set of support services and financial incentives. Partners who achieve the SMB Select Partner designation will be provided with resources, training and promotions, and will be listed on the Cisco Partner Locator so that they are easily identifiable by customers. SMB Select Partners can take advantage of this designation to increase sales, profitability and customer satisfaction. The specific resources available to the SMB Select Partner will vary by geography and will expand over time as the program develops.

U.S. SMB Select Resources

Sales and Technical Resources

• Sales support SMB Select Partners will be assigned to a Cisco Channel Account Manager (CAM) or Inside Channel Account Manager (ICAM) to provide sales and marketing support.
• Extended payment terms Preapproval of a distribution financing line of credit of up to $250,000 with free 60-day payment terms for purchases of Cisco products.
• SMB Partner Connection Access to this centralized portal providing sales, marketing and training resources for Cisco business and technology solutions for the SMB market.
• Presales reseller help line Technical presales assistance.
• Solution Designer Tool for partners Create customized demand-generation programs and demonstrate Cisco technology solutions to customers.
• Security Policy Builder Create custom network security policies designed to meet each customer's specific requirements.

Demand-Generation Resources

• E-Leads Access to a personalized account on the Cisco E-Leads system.
• Collateral Builder Customizable SMB-oriented e-mail marketing copy, postcards and flyers.

Training Resources

• E-Learning Access to the Cisco Partner E-Learning Connection and Business Planning program.

Recognition and Rewards

• Partner Locator Listing as a Cisco SMB Select Partner.
• Channel incentive programs Special programs, such as additional discounts or rebates, will be designed to reward SMB Select Partners.
• Special identification SMB Select Partners will have the ability to identify themselves as a Cisco SMB Select Partner on marketing materials.

Requirements

SMB Select is a global designation, but is customized locally. To qualify for the SMB Select Partner designation, prospective partners must meet specific program criteria in the areas of training, sales volume and sales mix. The global minimum requirements stipulate that SMB Select Partners must be a Cisco Registered or Cisco Certified Partner and have at least one employee with a Cisco Sales Associate or Cisco Sales Expert certification. In addition, to qualify in the United States each channel partner must demonstrate $100,000 annual Cisco revenue in hardware, software or services sales; 50 percent of their total Cisco sales in the SMB market; and commit to 100 percent end-user point-of-sale data.