Cisco simplifies channel model

Shaking hands

Cisco (NASDAQ:CSCO) has announced the launch of a new global services partner programme which the vendor says will simplify its channel model and dramatically increase the number of partners eligible for rebates.

Cisco claims its Services Partner Programme will consolidate 47 programmes into a single consistent services business relationship and moves its channel closer to a discount plus pay-for-performance rebate model.

The vendor has been piloting the programme with 2,500 partners across the US and Canada has found a 15 percent increase in the portion of their bookings eligible for rebates. Cisco’s analysis has also shown a threefold increase in the number of partners earning rebates compared to its previous programmes.

The vendor also used its annual Partner Summit running this week in San Diego to launch Partner Plus, a new global channel programme targeting mid-sized customers. Partners who participate in the new programme will receive increased incremental incentives including engineering support, marketing and demand generation and customer intelligence.

Partner Plus will be rolled out in limited mode in concert with the new services Partner programme, which is expected to be available to all partners in all geographies within the next 12-18 months.

“The relationship between infrastructure vendors and their business partners is changing,” comments Alastair Edwards, principal analyst at Canalys. “Partners are looking for vendors that can help minimise the risk and cost of moving towards new business models.”

According to Edwards, Cisco’s services approach is geared towards helping partners make these moves, by giving access to resources and intellectual property that help them to differentiate and add value to customers, while maintaining profitability and rewarding performance.