CISCO SOLUTION INCENTIVE PROGRAM (SIP)

Program Overview

Aug 2005

© 2005 Cisco Systems, Inc. All rights reserved. 1

Agenda

• Cisco Channel Strategy

• What is the Solution Incentive Program?
• Program Framework
• Expectations of the Partner
• Financial Impact to Partner
• How to Get Started
• How to Learn More

© 2005 Cisco Systems, Inc. All rights reserved. 2

 WW Channel Strategy

Business Solutions
PARTNER PROFITABILITY

Integrated Technologies

Technology Specialized

Individual Products

VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved. 3
 WW Channel Strategy

Business Solutions
PARTNER PROFITABILITY

Integrated Technologies

Technology Specialized

Individual Products

VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved. 4
 WW Channel Strategy

Business Solutions
PARTNER PROFITABILITY

Integrated Technologies

Technology Specialized

Individual Products

VALUE-ADD CAPABILITY
© 2005 Cisco Systems, Inc. All rights reserved. 5
Why Drive Solution Sales?

VALUE-ADD AND
BUSINESS RELEVANCE
Vertical Business-
CEO Solutions Centric

ns
tio
lu
CEO / Horizontal Business-

So
CIO Solutions Centric

Department Enterprise Technology-

Integration
Head Architecture Centric

Project Products and Fulfillment

Price and
Manager Technology Delivery-Centric

 Provides business relevance to the network

 Creates budget rather than absorbing it
 Targets business decision makers who
typically control the networking budget
 Grants partners access to critical vertical
and horizontal market opportunities
© 2005 Cisco Systems, Inc. All rights reserved. 6
 Incentive Programs
ADVANCED
TECHNOLOGY

Value Incentive
Program (VIP)

Opportunity Rewards Solution

Incentive Incentive
Program (OIP) Program (SIP)

INCREMENTAL BUSINESS
OPPORTUNITIES SOLUTIONS
© 2005 Cisco Systems, Inc. All rights reserved. 7
Solution Incentive Program

• Rewards partners that integrate Cisco into their

differentiated business solutions
Differentiates partner unique value
Increases customer intimacy and satisfaction
Grows partner revenue with value-added services
Drives partner profitability
• Partners must pre-qualify their solutions prior to receiving
the program benefits
• The program offers eligible partners financial incentives and
better engagement opportunities with Cisco sales teams

© 2005 Cisco Systems, Inc. All rights reserved. 8

What Is a Solution Under SIP ?
Solution
=
Partner Integration Skills
(Lifecycle Solution Services)
+
3rd Party Business Application
+
Cisco Technology
Differentiated and Repeatable

© 2005 Cisco Systems, Inc. All rights reserved. 9

 SIP framework

Converged 3rd Party Consulting

SIP Eligible

network hardware Services

A network comprising these elements
Solutions

above the line is eligible for the SIP reward
Reference 3rd Party Prof. Integration
architecture application Services
+ + =
Non Eligible

A network comprising only these elements

below the line is not eligible for SIP reward

Point
products
Cisco
applications
Maintenance
Services
 Network
Integration

Technology Applications Services Pilot Solutions

© 2005 Cisco Systems, Inc. All rights reserved. 10
 Cisco Business Solution Positioning
Requirement

Vertical Market End Users

Vertical
Market

Prepare, Plan, Design, Implement,

Operate & Optimize
Cisco
(PPDIO) Certified
Partner
Reference Architecture ISVs /
Ecosystem
3rd Party Vendors Partners
Business
Solution

Cisco’s Architecture
Cisco Capital

Customer Advocacy Cisco

Advanced Advanced Foundation
Technologies Technologies Technologies

IP SAN /
Wireless Security Routers Switches
Comms Optic
© 2005 Cisco Systems, Inc. All rights reserved. 11
SIP Objectives

• Grow incremental revenue in critical markets

• Boost partner profitability for resellers
integrating Cisco into the solution sale
• Increase the business relevance
of the network
• Expand the usage/need for network bandwidth
• Support the channel partner value model

© 2005 Cisco Systems, Inc. All rights reserved. 12

SIP Benefits
Creates greater intimacy and
understanding of business
imperatives
Adds business value to the
network
Improves customer satisfaction

To Customer

To Partner To Cisco
Rewards solution investment Increases business relevance
Provides differentiation of networking
Improves profitability Creates budget for networks
Increases value-add Improves partner profitability
opportunities Encourages channel focus on
© 2005 Cisco Systems, Inc. All rights reserved.
value-add 13
 PROGRAM FRAMEWORK

© 2005 Cisco Systems, Inc. All rights reserved. 14

 Program Workflow
1 Pre-qualification (one time per solution)

2 Deal Registration (one per deal)

3 Evaluation (annual review)

© 2005 Cisco Systems, Inc. All rights reserved. 15

 Program Workflow
1 Pre-qualification (one time per solution)
Partner submits Channel (CAM) Program Council approve Pre-Qualified
Solution Business review solution validates solution Partner
Plan Business Plan Business Plan (evaluated annually)

deny
REJECT

2 Deal Registration (one per deal)

3 Evaluation (annual review)

© 2005 Cisco Systems, Inc. All rights reserved. 16

 Program Workflow
1 Pre-qualification (one time per solution)
Partner submits Channel (CAM) Program Council approve Pre-Qualified
Solution Business review solution validates solution Partner
Plan Business Plan Business Plan (evaluated annually)

deny
REJECT

2 Deal Registration (one per deal)

Field (CAM/AM) Program Mgr Deal Protection
yes approve approve
Pre-qualified? validate validates (review at
registration registration 6 months)
no deny deny
REJECT REJECT REJECT

3 Evaluation (annual review)

© 2005 Cisco Systems, Inc. All rights reserved. 17

 Program Workflow
1 Pre-qualification (one time per solution)
Partner submits Channel (CAM) Program Council approve Pre-Qualified
Solution Business review solution validates solution Partner
Plan Business Plan Business Plan (evaluated annually)

deny
REJECT

2 Deal Registration (one per deal)

Field (CAM/AM) Program Mgr Deal Protection
yes approve approve
Pre-qualified? validate validates (review at
registration registration 6 months)
no deny deny
REJECT REJECT REJECT

3 Evaluation (annual review)

Met min. revenue: Met at least
SMB - $200K yes 70% of yes
forecast? RENEW
Enterprise - $1M
no no Partners removed from program
REMOVE REMOVE may not reapply for six months.
© 2005 Cisco Systems, Inc. All rights reserved. 18
SIP Prequalification: Partner Pre-requisites

• Cisco Certified Partner

(Gold, Silver, Premier)
• Specialized in appropriate
technology identified as part
of the solution definition
• Has existing installed base of
customers in target market
• Documented Business Plan for
driving solution
• Selling model targets Business
Decision Maker
• Sales team is solution focused
• Provides unique solution
competency
© 2005 Cisco Systems, Inc. All rights reserved. 19
SIP Prequalification: Solution Criteria
• Repeatable
• Includes Business Relevant Application
• Includes Solution Support Services
• Includes Cisco Technology (recommend
AT)
• Expands need for network bandwidth
• Reference Architecture includes Cisco
• Cisco product and services is no more
than 70% of solution opportunity
• Two reference accounts that have installed
solution within past 12 months
• Minimum revenue per year (list to Cisco):
$200K in SMB or $1M in ENT
Minimum deal registration transaction size (list to
Cisco): $20K in SMB and $100K in ENT

© 2005 Cisco Systems, Inc. All rights reserved. 20

SIP Deal Registration: Requirements
• Partner solution prequalified for the SIP
• Registration must be for partner-approved solutions only
• Partner must be a Cisco Gold, Silver, or Premier Certified Partner
• Incremental business generated by partner
• Minimum deal size for Cisco products and services:
SMB/Commercial $20K at list price
Enterprise $100,000 at list price
• Partner completes and documents presales milestones:
Identify primary decision makers, budget, and timing of opportunity
Determine end-customer business issues and requirements
Perform end-customer phone and face-to-face sales calls
Provide high-level design to customer
• Registration must be prior to an end customer RFP to be eligible

NOTE: Partners CANNOT stack OIP and SIP

• SIP discount accounts for partner “hunting” efforts
• All deal registration based programs protect the first partner
to register the deal and complete the pre-sales milestones.
If the deal is first registered and approved under SIP, it is not eligible for
OIP.
© 2005 Cisco Systems, Inc. All rights reserved. 21
 Solutions Example
 Vertical Market Applications Cisco Technologies
 FT Upgrades
 WLAN + WCS
• Nurse Call
 Security
• Patient Monitoring
 IP Communications/Unified
HealthCare • Location based services
Communications
• Collaborative Care
 IP Wireless Phones
• PACS (E-Radiology)
 Call Manager
 MeetingPlace / VT Advantage
• Building Automation
 WLAN
• IP based Physical security  ( access control, video
Connected Real  Security
surveillance, fire )
Estate  IP Communications/Unified
• Converge applications that drive collaboration and Communications
increase productivity increase in workplace

• Customer Relationship Management  WLAN

Retail • Billing POS  IP Communications/Unified
• Warehouse Management System Communications

• Supply Chain Management  WLAN

Manufacturing • Xtended Markup Language  IP Communications/Unified
• Warehouse Management System Communications

 WLAN
• Warehouse Management System
Transportation  IP Communications/Unified
• Supply Chain Management
Communications
 WLAN
• Warehouse Management System
 IP Communications/Unified
Logistic/Warehousing • Employee Resource Planning
Communications
• Supply Chain Management
© 2005 Cisco Systems, Inc. All rights reserved.  Security 22
APAC SIP Model

• Run pilot program for 6 month period, effective Q1 FY06

• Target countries to include:
• Australia
• India
• New Zealand
• Singapore
• China
• Korea
• Taiwan
• SIP rebate of 4% list,
• SIP stackable only with VIP*
• SIP is a backend rebate program
• SIP applicable to all products and must include AT
• Mandatory maintenance attachment on all products for 1 year
minimum (Cisco Shared Support Program or branded resale)
© 2005 Cisco Systems, Inc. All rights reserved. *based on current VIP% program rules 23
Expectations of the Partner: Registration

• Solution Pre-qualification Deliverables

Business Plan
Reference Architecture
Installed Base

• Deal Registration Deliverables

Customer name & contact info for opportunity
Opportunity description
Cisco products included
Estimated budget & decision date
Sales Visit Report
High Level Design
© 2005 Cisco Systems, Inc. All rights reserved. 24
How Do Partners Get Started

• Visit http://www.cisco.com/go/ap/sip
• Review online program documents (presentation,
program rules, Q&A) and download business plan
• Partners send completed business plan to their CAM
and the SIP alias: apac_sip@cisco.com. Each
partner solution requires a business plan.
• Partners will receive notification within 10 business
days via e-mail.

© 2005 Cisco Systems, Inc. All rights reserved. 25

How to Learn More
• SIP Website: http://www.cisco.com/go/ap/sip
Presentation
Q&A
Program Rules
User Guide
Business Plan Template
• Program alias for submitting solution business plan and
general questions:
apac_sip@cisco.com
• Submit presales milestone documents to:
apac_sip@cisco.com
• Deal Registration Approval Tool: http://www.cisco.com
/go/deals

© 2005 Cisco Systems, Inc. All rights reserved. 26

Presentation_ID © 2004 Cisco Systems, Inc. All rights reserved. 27