We’d Love To Be A Cisco Partner But…?

strategic-alliances-and-partnerships-can-improve-your-sales-strategy

Cisco Systems Inc. is an awesome company to be affiliated with. Market leaders in Networking Equipment, thought leaders in the world of IT, innovators and disruptors – yet their partnership model may deter companies who’d otherwise be a perfect partnership match. If a company wishes to specialise in delivering Cisco Professional Services rather than Managed Services, Technology Solutions or the Networking Infrastructure – Then becoming a Cisco Partner may prove to be more restrictive than progressive.

 

Constricting Criteria

Cisco set strict criteria to prevent poor quality vendors being affiliated with the Cisco Brand, a commendable approach to ensure Brand consistency & quality of service. However in an era dominated by Technology, might it be feasible to consider that people and not technology may be at the heart of some business models? If a business places a greater emphasis on people (Professional Services) over technology (Managed Service Provider/ICT), then the Cisco partnership model just doesn’t fit.

For example if a company wishes to deliver Cisco Engineering resources in a number of regions, then that company MUST have at least 1 employee with a Cisco ID in each region they operate – If you want to offer Professional Services Internationally, be prepared to pay for employees you don’t need, but Cisco say you do. Some Professional Services companies operate in a variety of international regions, and do so successfully without the need to have an employee with a Cisco ID in each region. In fact employing someone with a Cisco ID in all the regions they operate may help to satisfy the Cisco partnership criteria, but would result in a tremendous increase in operating costs and may even turn a profitable company into a loss-making one. Cisco Engineers can be deployed from a remote location using a retainer or contractor model, so why the need to have a Cisco employee in each region?

Partners also need to have at least 1 specialisation linked to a Cisco product/solution – What if your specialisation isn’t related to a specific Cisco product or suite of products? Often Engineers are faced with a network comprising of HP Server Blades, Cisco Routers, Switches & Firewalls and F5 Load Balancers. Cisco’s rhetoric with partners is focused on providing solutions across the entire network infrastructure, but there’s often a need to have a multi-vendor approach to the network lifecycle. Offering solutions in Unified Communications & Collaboration, Wireless or Security is part of the business model for most IT Professional Services organisations, but if the solution offered is Certified Cisco Engineers, that’s not recognised – only hardware/software is a recognised solution, not people.

Hannah Breeze in a recent CRM article wrote that Cisco admitted their current partnership model & annual audits “Caused Partners a lot of hassle” and that the overwhelming consensus from existing Cisco partners asked Cisco to “Ease Up”. Enduring annual audits and submitting 10 customer satisfaction survey results twice annually soon starts to take a toll on your employees, time and capital.

 

You Don’t Need Tin To Win

Cisco Systems are market leaders in the provision of networking hardware, but not everyone wants or benefits from selling it. For a company specialising in Professional Services the lure of a 1-2% profit margin when selling hardware vs the profit margins available on deploying Engineers, making the decision to “bin the tin” is a no-brainer. Of course Cisco hardware is essential for the provision of Cisco Engineers, clients continuously demand the best networking hardware, and Cisco duly obliges. However for a specialist Professional Services Company, selling hardware is simply an exercise in generating revenue rather than profits – vanity over sanity.

 

Power to the People

Cisco Systems Inc. is renowned for their market leading position in the provision of networking equipment, their innovations with smart cities and the Internet of Everything – but the key strength of Cisco is their people. No other vendor offers qualifications held in such high-regard across international borders, everyone knows and values Engineers with a CCNA, CCNP or CCIE certification. Cisco Certified Engineers have an excellent understanding of multiple vendors, their equipment and the network infrastructure – all a result of the quality of training and examination needed to earn a Cisco Certification.

Regardless if you offer Professional Services, Managed Services or Networking Solutions, the essential ingredient is Cisco Engineers – the people. As an organisation Cisco Systems create their own industry – distributors selling hardware, colleges selling certifications and partners selling Finance & Services. Diversification and growth is achieved through careful acquisitions and Cisco is a darling of the NYSE – their plans for the future are solid. However a plan is useless without successful implementation and this is where Cisco excels. Achieving the vision of the future with the Internet of Everything, hardware needs to be installed and maintained, Consultants need to design networks and the Cisco wheels need to keep churning – There is no future without Cisco Engineers.

 

Sitting on the Fence

For organisations choosing to specialise in Professional Services, sitting on the fence may be the best strategy to adopt. Becoming a Cisco Partner may result in dangerous levels of exposure, too many employees, too much capital expenditure or being forced to adopt a precarious infrastructure that lacks the flexibility to respond to market demands. Therefore by electing to be a Cisco-centric company, but not becoming a partner ensures continued success. If close affiliates to Cisco can create and prove a profitable business model, with exponential growth which is outside the realms of their partnership criteria, then reciprocation is needed to establish a functioning partnership.

The purpose of this blog article is to open up debate surrounding the Cisco partnership model. Do you think Professional Services as a business model can work without being a Cisco partner? If you’re a Cisco partner what would you recommend? Feel free to comment on this article – musings, rants and opinions are all welcome.

2 replies
  1. Cincinnati Cisco Authorized Reseller
    Cincinnati Cisco Authorized Reseller says:

    There’s no denying that the margins on professional services is way better than the margin on hardware. Unfortunately, Cisco AEs and SEs are only paid on their hardware sales (as far as I know) so good luck if you’re a services company trying to get Cisco support on a project that is mainly services based. That said, there are several companies I know of in the Cincinnati area who don’t sell all that much hardware. They have a collaborative/referral relationship with another large VAR in town for transactional sales and they just focus on services delivery. I personally think this is throwing money out the door but the model works for them. At my company we provide both hardware and services.

    -President of a small Cisco Premier Partner in Cincinnati, Ohio, USA

    Reply
    • Jason King (BA) Hons Cert DMP
      Jason King (BA) Hons Cert DMP says:

      Thanks for taking the time to provide us with your thoughts Phil. You are perfectly correct to highlight that in the Cisco Partnership model that selling hardware is an essential element. However the blog post was intended to spark debate about the importance of a Cisco-centric Professional Services business model and IF being a Cisco partner suits ALL types of models. The blog specifies “You Don’t Need Tin To Win” and our exponential year on year growth is testament to this fact. As a “White Labelled” Professional Services company there genuinely isn’t a necessity to touch hardware to make a profit. A Cisco Professional Services only business model is working – FACT, yet we can never be recognised as a partner, despite our dedication to the Cisco Brand, and it is that fact that we wanted to highlight in our debate over the criteria to become a Cisco partner 🙂

      Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *