Cisco Systems Australia has driven a steamroller through its internal channels operation, flattening its management structure and retrenching two staff.
Cisco's director of operations Steve Hill says he took the opportunity to make the changes late last month. "It's really just a flatter structure," he said. "We ran two channel structures, so I took the opportunity to flatten the structure and roll it into one channel, so we now have a group of channel managers who report directly to myself."
The changes will see distribution sales man-ager Liz Lawson continue to manage the distribution channels, but national channels manager Peter Papaioannou has moved into a channel development role. "He's focused on trying to develop Cisco sales expertise within our channel," said Hill.
Also affected is Cisco's two-tier model. Hill said the number of VARs buying directly from Cisco will drop from 30 to a figure closer to 10 or 15, dependent on volumes of business and the areas where the partners are operating. A report carried in Computer Daily News attributes part of the reasoning behind the changes to an expected $20 million shortfall in Cisco's local revenue target of $200 million for 1996Ð97. The report quotes new Cisco managing director Gary Jackson as warning his sales force to "get back to the gut wrenching, fierce, bloody desire to win if you have in any way wandered off to fat and happy heaven, because Cisco is not a retirement village."