Cisco has made significant enhancements to its Cloud Services Resale model to accelerate the Cloud services reseller’s ability to capture new revenue from the Cloud and provide a variety of new benefits, according to Cisco Systems senior vice-president, Edison Perez.
Perez also announced the Cisco Business Transformation Playbook, an online portal which provides guidance on key business functions including business model building, marketing, sales, operations and services.
He was speaking at the Cisco Global Partner Summit 2013.
Cisco global Cloud go-to-market vice-president, Jeff Spagnola, highlighted the specifics of the enhancements.
The Cloud Services Resale model enhancements include compensation of Cisco’s sales force when they sell a Cisco powered service through a Cloud services reseller; as well as a value incentive program rebate on sales of Cisco powered services for existing Cisco partners that become Cloud service resellers.
The Cisco Business Transformation Playbook provides a blueprint for partners transitioning their business from a product reseller to include annuity based Cloud revenue. It includes an online business transformation workshop and a video-on demand service.
“We made a conscious decision not to be a Cloud provider. We made a decision to enable our partners to get far more reach around the globe.
“We need to evolve the way we enable our partners, especially with these market transitions. It helps our partners get into the Cloud business around the collaboration area as well as the Infrastructure-as-a-Service (IaaS) area,” Spagnola said.
Perez stressed the importance of moving to the Cloud as it is one of the fastest-rowing areas.
He claimed that a successful partner of the future will be one that adapts a hybrid IT business model – a partner that offers managed services, on-premise solutions and professional services.
“That’s where we are headed. The customer needs someone to architect the right mix of solutions and delivery models.”
He suggested partners adopt the following in evolving their business models for tomorrow:
- Make hybrid IT a foundation of value proposition
- Lead with solutions and professional services
- Transition sales teams to address new buying centres
Perez also attributed a finding by Gartner, which claimed that by 2014, more than 30 per cent of the IT budget will be influenced by new lines of business.
“All of the market transitions that we’ve gone through have been technology based. It’s the technology that changes, not your business models. Your business models fundamentally evolves,” he said.
Perez said that it is a good example that highlights the continual need for the channel in the IT space.
“The channel will remain tomorrow as it does today. We are dependent on you being the independent, local trusted provider of multiple vendor solutions,” he added.