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June 4, 2009
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SMB takes center stage at Cisco

4 June, 2009
By Steve Wexler


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BOSTON: Contributing a mere $1 billion to its top line, SMB has typically been considered somewhat of a sideshow for Cisco Systems Inc. . So Andrew Sage, VP, WW small business sales, expressed great joy when he shared the stage with his boss, Keith Goodwin, senior vice president, worldwide channels, at the company's annual partner event and 'snuck in' a few SMB-oriented messages. But Sage was all business on Thursday when he announced a number of new initiatives intended to grow Cisco's SMB sales. As it has been doing all week, the company announced new products, programs and incentives that can solve business problems, help SMBs gain a competitive advantage, and drive profitable sales to the channel.

"SMB is a $7 billion opportunity for all of us," said Sage. Cisco plans to double its current share. "Small is the new big!"

The announcements included additions to the Cisco Small Business Pro series, a product set designed for channel value add. Currently consisting of more than 100 purpose-built products, the newcomers include: Cisco ESW 500 Series Switches, managed Ethernet switches that come with a five-year warranty, which includes next business day hardware replacement where available, free software fixes, 90 days of complimentary tech support and one year of click-to-chat support; and the Cisco SPA8800 IP Telephony Gateway, which connects an open source IP PBX to existing analog phones and fax machines.

New to the Cisco Small Business Series is the Cisco PVC300 IP Camera, an easy-to-use IP video surveillance solution. The company also announced enhancements to the Cisco Smart Business Communications System, a collaboration and communications system. SBCS Release 1.5 features new applications that boost productivity and improve customer service, lower pricing based on Cisco Unified Communications 500 Series, and an even lower cost per user when coupled with Cisco ESW 500 Series Switches.

Also announced was the Cisco Small Business Pro Service that provides small businesses with three years of technical support and coverage for Small Business Pro solutions. It includes software updates, next business-day hardware replacement as necessary, and extended access to the Cisco Small Business Support Center. Community-based support for partners and customers is available 24/7 online.

To help drive the market, Cisco has introduced several channel offers to help increase profitability selling its small business solutions, including: increased rebates for Select certified partners participating in the global Partner Development Funds profitability program -- up to $15,000 until July 25, 2009; the new Small Business Performance Accelerator for registered partners selling to small business; and extended channel financing terms to 90 days as part of a six-month financing stimulus package for partners currently participating in the extended terms financing program.

How Cisco goes to market is as important to Cisco as the product, added Sage. The company has invested more than $1 million this quarter in getting the channel trained for SMBs. Demo units are being made more available, and Web initiatives, including content, partner locator and Partner Space are being improved and/or discounted. There are also leasing and discount programs to help ensure partner profitability.

There is still work to be done, said Sage, but these initiatives are a great step forward.














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