When I have a look at Cisco’s historical past, I’m extremely happy with what we’ve constructed – a world-class {hardware} portfolio that’s been the inspiration of our shared success. Over the final 5 years, our enterprise has developed considerably. As our current earnings present, subscription income now represents 56% of Cisco’s whole income. Our enterprise mannequin has remodeled from primarily transactional to more and more subscription-based, with software program income rising 33% and software program subscription income up 39%. This basic shift displays how our clients choose to devour know-how and the altering nature of worth creation in our trade.
These modifications mirror Cisco’s ongoing innovation, not simply in enterprise mannequin but in addition in services and products that meet the wants of buyer challenges. In recognition of this, it’s time for our accomplice packages to proactively align with this evolution, positioning Cisco’s ecosystem to guide slightly than reply to market modifications.
The Path Forward
The market is shifting in direction of outcome-focused know-how consumption. As we’ve labored with you on our broader Cisco 360 Partner Program evolution, we’ve been impressed by what number of of you have got already begun this journey – constructing integration practices, creating software program capabilities, and creating providers that ship distinctive buyer experiences.
Our alternative now at Cisco is to correctly and adequately reward you for driving buyer outcomes. We now have the chance to evolve our partnership method collectively, making a program that helps not simply the place the enterprise is in the present day, however the place it’s headed tomorrow.
Managing the Customer Lifecycle While Staying Committed to Partner Profitability
I wish to be crystal clear about one thing – our program and incentive evolutions is just not about lowering what we spend money on our partnerships. What’s altering is how we direct these investments to mirror the whole buyer journey. In reality, our dedication stays constant whereas offering much more alternatives and accelerators to extend profitability. It’s about including worth the place clients want it most and rewarding companions who ship throughout your complete lifecycle.
This places us able to supercharge our buyer attain. Instead of rising one buyer at a time, we’ll faucet into fully new markets and segments by means of our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – turning into an important a part of our clients’ every day operations. Through this developed partnership method, we’ll achieve deeper buyer insights that drive innovation – seeing not simply what clients do with our options, however how they match into their full know-how stack.
A Thoughtful, Phased Approach
I perceive these modifications straight affect what you are promoting operations and profitability. That’s why we’re taking a measured, two-phase method that gives stability whereas permitting time to adapt:
Starting July 27, 2025:
- Through the Value Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic provides and adoption-based incentives
- The Customer Assessment Incentive will provide extra earnings for high-quality assessments
- We’ll regulate the Cisco Services Partner Program payouts and retire the Monthly Value Rebate for Cisco Success Tracks
In February 2026:
- We’ll introduce the Cisco Partner Incentive, rewarding you throughout your complete LAER journey
- This will substitute a number of siloed packages, making it simpler to know, predict, and maximize your earnings
- The annuity payout on software program and providers and the Delivery Rebate will likely be retired as a part of this transition
To help you on this journey, we’re offering:
- New reserving dashboards in Partner Experience Platform (PXP) for efficiency visibility
- A profitability estimator instrument (obtainable in May) to mannequin potential earnings
- Comprehensive coaching on maximizing alternatives
- Regular, clear communication
I encourage you to contact your Partner Account Manager to debate how these modifications complement your particular enterprise technique. My crew and I are dedicated to making sure this transition creates new alternatives for progress
When we evolve collectively, we win collectively. The power of Cisco has all the time been our accomplice ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create a good stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable progress for all of us.
We’d love to listen to what you assume. Ask a Question, Comment Below, and Stay Connected with #CiscoPartners on social!
Cisco Partners Facebook | @CiscoPartners X/Twitter | Cisco Partners LinkedIn
Share: