After I have a look at Cisco’s historical past, I’m extremely pleased with what we’ve constructed – a world-class {hardware} portfolio that’s been the inspiration of our shared success. During the last 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 reworked 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 want to eat know-how and the altering nature of worth creation in our trade.
These modifications replicate Cisco’s ongoing innovation, not simply in enterprise mannequin but in addition in services that meet the wants of buyer challenges. In recognition of this, it’s time for our accomplice applications to proactively align with this evolution, positioning Cisco’s ecosystem to steer quite than reply to market modifications.
The Path Ahead
The market is shifting in the direction of outcome-focused know-how consumption. As we’ve labored with you on our broader Cisco 360 Companion Program evolution, we’ve been impressed by what number of of you’ve already begun this journey – constructing integration practices, creating software program capabilities, and creating companies 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 at the moment, however the place it’s headed tomorrow.
Managing the Buyer Lifecycle Whereas Staying Dedicated to Companion Profitability
I need to be crystal clear about one thing – our program and incentive evolutions just isn’t about decreasing what we put money into our partnerships. What’s altering is how we direct these investments to replicate the entire buyer journey. The truth is, 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 the complete lifecycle.
This places us able to supercharge our buyer attain. As an alternative of rising one buyer at a time, we’ll faucet into completely new markets and segments via 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’ day by day operations. By 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 Considerate, Phased Method
I perceive these modifications instantly affect your small business operations and profitability. That’s why we’re taking a measured, two-phase method that gives stability whereas permitting time to adapt:
Beginning July 27, 2025:
- By the Worth Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic presents and adoption-based incentives
- The Buyer Evaluation Incentive will supply extra earnings for high-quality assessments
- We’ll alter the Cisco Companies Companion Program payouts and retire the Month-to-month Worth Rebate for Cisco Success Tracks
In February 2026:
- We’ll introduce the Cisco Companion Incentive, rewarding you throughout the complete LAER journey
- It will substitute a number of siloed applications, making it simpler to know, predict, and maximize your earnings
- The annuity payout on software program and companies and the Supply Rebate might be retired as a part of this transition
To assist you on this journey, we’re offering:
- New reserving dashboards in Companion Expertise Platform (PXP) for efficiency visibility
- A profitability estimator software (obtainable in Could) to mannequin potential earnings
- Complete coaching on maximizing alternatives
- Common, clear communication
I encourage you to contact your Companion Account Supervisor to debate how these modifications complement your particular enterprise technique. My workforce and I are dedicated to making sure this transition creates new alternatives for development
Once we evolve collectively, we win collectively. The energy of Cisco has at all times 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 development for all of us.
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