Cisco go Beyond Expectation with huge upgrade to partner incentive program at 2023 Partner Summit.


At Cisco’s 2023 Partner Summit this week, Cisco annouced a massive shakeup in their partner incentive programme. I my experience (and from the partners I work with), this makes Cisco’s incentive programme really stand out as top in class, in terms of where and how partners are rewarded.

In short, this new Partner Incentive is based-on three areas.

  • Rebates for one-time sales deals.
  • Incentives for recurring business.
  • Additional rebates for driving customer value services such as driving adoption and increasing subscription volumes (seats).

Inventives aligned to Cloud

Cisco said that they are transforming the partner program to align with its transition to more software and services-based offerings.

The new Cisco Partner Incentive programme is designed to reward partners for selling Cisco hardware, software and as-a-service solutions by aligning the rebates paid, based on total contract value, customer adoption and growth of the subscriptions they have bought. This will help ensure Cisco partners work more closely with their customers (as against one off deals) to ensure their customers buy it, use it and grow it, rather than just focusing on selling product.

This is a similar approach that longer standing cloud vendors such as Microsoft use to drive usage and adoption of their products and services.

The Cisco Partner Incentive is the biggest change we’ve made to partner incentives in more than a decade and is the capstone on the Cisco partner programme evolution started in 2020.

Marc Surplus |VP partner programs|Cisco

The new icentives will also better support their partners to acquiring new logos, for up selling additional cisco products and services and for cross selling into other accounts. Partner that offer and upsell “Cisco Powered Managed Services” will also receive increased rebates.

Skills Shortages driving Managed Service Demand

Cisco estimates that the managed services market for its products is worth $161 billion, and expects 46% of its sales to be sold as a managed service by 2027.

More and more organisations are turning to trusted Cisco Partners to look after support and maintaining their technology and help drive adoption of technologies to increase ROI and usage across their organisations.

New Specialisations to differentiate the top partners

To help partners differentiate in the market and demonstrate their expertise, Cisco is also introducing up to six new solution specialisations within the next nine months. These will cover areas such as cloud, security, collaboration, IoT, data center and enterprise networking.

Cisco is also enhancing its partner experience platform (known as PXP) with new features which include as a new sustainability estimator, that will enable partners to calculate and present their customers with environmental and cost benefits of modernising their IT hardware with the latest technology. This will made available only to environmental sustainability specialised partners.

Cisco is also introducing new Partner Advanced Support for Managed Service Providers (MSPs) along with guided access to API integrations that build on MSPs’ existing services and integrate into their operation and support services platforms such as Service Now.

New partner program starts H2 2024

The new Cisco Partner Incentive is expected to begin in the second half of 2024, and will replace the existing Value Incentive Program (VIP) and VIP Annuity.

Designed for everybody to wins

Cisco says the new incentive will provide more predictability and profitability for partners, as well as more value for customers. This is great news for partners like us (Cisilion) as it helps us drive more value for customers, while keeping prices for product and services low in an ever more competitive landscape.

Rewarding partners for growth and adoption of Cisco products helps ensure customer leverage maximum value and ROI of their investment, ensures partners continue to add value and that Cisco (hopefully) retain and grow their market share across their extensive product portfolio.

Rob Quickenden | CTO | Cisilion.

Why Cisco’s new Solution Specialisations are great for Cisco, their partners, and their customers

As tech vendors continue to modernise and revamp their partner programmes to better align with the pace of technology, changing needs of their customers, demands around hybrid work and the continual digital transformation acceleration, Cisco have recently added six new solution specialisations which aim to further build and support their partner competitiveness as well as recognise and reward partners with specific expertise and capability.

Image (c) Cisco

The six new specialisations are tied to Cisco customer priorities and represent fast-growing market opportunities for Cisco and its partners in areas where Cisco has been investing and innovating. These are heavily focussed around Hybrid Cloud and Hybrid Work and the solutions that enable these.

Cisco’s Solution Specialisations

The new solution specialisations are one of the four categories of partner specialisations available to qualified Cisco partners, like Cisilion to demonstrate their expertise to customers, including:

  • Architecture specialisations: demonstrate product expertise in specific technology areas.
  • Solution specialisations: demonstrate that a partner excels at delivering value with Cisco solutions, including cross-architectural offers prioritized by customers.
  • Cisco Powered Service specialisations: convey partner proficiency in delivering managed services and as-a-service offers.
  • Business specialisations: focused on horizontal business practices that are essential to supporting customers’ business goals.

Partners that achieve solution specialisations are recognised and rewarded based on the value delivered to customers. The requirements for each specialisation are tied to knowledge and experience, allowing partners to capitalize on their existing investments with Cisco.

The relevance of the new Solution Specialisations

Cisco say their solution specialisations are designed to “showcase partner value to customers and represent the type of solutions partners are selling today“. These specialisations (which are not simple to earn and retain), reflect how Cisco partners, like Cisilion, are using cross-architectural solutions to solve their customers’ biggest challenges (such as how to address the challenges or hybrid work) rather than just simply selling and deploying technology products. Cisco say that “the specialisations are awarded to partners that can demonstrate how they are working collaboratively with Cisco to help solve customer challenges such as balancing an organisation’s security needs with the flexibility employees want, providing the best digital experience or consistently delivering a secure user experience from anywhere.

Specialisation is ranked number one as the initial critical partner selection criterion for 74 percent of customers. By tying solution specialisations to customer buying criteria, Cisco makes it easier for customers to identify which partners to work with.

Techaisle Take: Cisco Partner Program

The six new solution specialisations

  • Full-stack Observability (FSO): Which highlights partners expertise in centralising and correlating application performance analytics across the full IT stack. This includes integrations across Cisco’s AppDynamics, Thousand Eyes, Intersight, and Secure Application. Partners with this specialisation can demonstrates expertise in prioritising actions to deliver superior customer experiences, drive revenue streams, and accelerate digital transformation for their customers.
  • Hybrid Work from Office: Which recognises partners for their skills and experience helping customers evolve traditional on-site and off-site work models, with solutions that power hybrid work, enabling people to work safely and securely from home, the office, and anywhere in between on any given day or time.
  • Secure Access Service Edge (SASE): Which highlights partners’ ability to help their customers to securely enable the growing universe of roaming users, devices, and software-as-a-service (SaaS) apps without adding complexity or reducing end-user performance.
  • Hybrid Cloud Computing: Showcases partners that provide customers with simple, secure hybrid cloud computing experiences at home, in the office, or anywhere.
  • Hybrid Cloud Networking: Recognises partners that securely and efficiently connect and manage customers’ data, workloads, and applications across data centres, edge, and multiple clouds.
  • Hybrid Cloud Software: Demonstrates expertise in managing operational complexity by helping customers streamline and unify IT operations with secure, hybrid cloud management software.

Benefits for Customers and Partners

The main benefit is that this approach takes away from an old-skool technology/product sell that was all about speeds, feeds, features, and cost, and instead encourages partners to have more meaningful “outcome-based conversation“. Cisco say this should help partners do what they do best – having a more “unified solution strategy” conversation with customers where technologies integrate and work together to provide solutions that are better than the sum of the parts.

Examples of this include the alignment between Cisco’s Webex video, calling and meeting services, the network infrastructure layer, the edge, and the Internet with integrated full stack visibility across these layers to ensure the best user experience whilst simplifying IT operations through management and support.