CISCO SOLUTION INCENTIVE PROGRAM (SIP) Program Overview Aug 2005

Agenda Cisco Channel Strategy What is the Solution Incentive Program? Program Framework Expectations of the Partner Financial Impact to Partner How to Get Started How to Learn More

PARTNER PROFITABILITY WW Channel Strategy Business Solutions Integrated Technologies PARTNER PROFITABILITY Technology Specialized The focus is to improve partner profitability based on value-add capability As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately. Individual Products VALUE-ADD CAPABILITY

PARTNER PROFITABILITY WW Channel Strategy Business Solutions Integrated Technologies PARTNER PROFITABILITY Technology Specialized The focus is to improve partner profitability based on value-add capability As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately. Individual Products VALUE-ADD CAPABILITY

PARTNER PROFITABILITY WW Channel Strategy Business Solutions Integrated Technologies PARTNER PROFITABILITY Technology Specialized The focus is to improve partner profitability based on value-add capability As partners deliver more relevance to the customers and move from products to systems to solutions, they are branded and rewarded appropriately. Individual Products VALUE-ADD CAPABILITY

Why Drive Solution Sales? VALUE-ADD AND BUSINESS RELEVANCE Solutions Business- Centric Fulfillment Price and Delivery-Centric Integration Project Manager Products and Technology CEO Vertical Solutions CEO / CIO Horizontal Solutions Department Head Enterprise Architecture Technology- Centric Provides business relevance to the network Creates budget rather than absorbing it Targets business decision makers who typically control the networking budget Grants partners access to critical vertical and horizontal market opportunities

Incentive Programs Rewards ADVANCED TECHNOLOGY Value Incentive Program (VIP) Rewards Opportunity Incentive Program (OIP) Solution Incentive Program (SIP) INCREMENTAL OPPORTUNITIES BUSINESS SOLUTIONS

Solution Incentive Program Rewards partners that integrate Cisco into their differentiated business solutions Differentiates partner unique value Increases customer intimacy and satisfaction Grows partner revenue with value-added services Drives partner profitability Partners must pre-qualify their solutions prior to receiving the program benefits The program offers eligible partners financial incentives and better engagement opportunities with Cisco sales teams Rewards partners that integrate Cisco into their differentiated business solutions The Cisco Solution Incentive Program (SIP) motivates the channel partner community to provide business solutions that leverage the power of an integrated network. SIP drives partner profitability by providing financial incentives, designed to reward opportunities delivering vertical and horizontal customer solutions that integrate non-Cisco applications and services with Cisco technology. The SIP is designed to encourage ecosystem collaboration to develop unique applications that deliver business relevant solutions to end customers. Differentiates partners’ unique value: Solutions offer an effective approach to demonstrating a partner’s unique solution capabilities relative to other competitors. Increases customer intimacy and satisfaction: Solutions-focused partners have an extensive understanding of their end customer business priorities, and deliver a customized portfolio of products and services. Grows partner revenue with value-added services: With closer end-customer relationships, partners are better able to assess additional service offerings to address a customer’s needs. Drives partner profitability: SIP increases partner profitability by providing a substantial financial incentive that can help off set the costs of solution deployment and development.

What Is a Solution Under SIP ? = Partner Integration Skills (Lifecycle Solution Services) + 3rd Party Business Application Cisco Technology Differentiated and Repeatable

Solutions Integration SIP framework Converged network 3rd Party hardware Consulting Services SIP Eligible A network comprising these elements above the line is eligible for the SIP reward Solutions Integration  Reference architecture 3rd Party application Prof. Services + + = A network comprising only these elements below the line is not eligible for SIP reward  Network Integration Non Eligible Point products Cisco applications Maintenance Services Technology Applications Services Pilot Solutions

Cisco Business Solution Positioning Vertical Market Vertical Market Requirement End Users Prepare, Plan, Design, Implement, Operate & Optimize (PPDIO) Cisco Certified Partner Reference Architecture ISVs / Ecosystem Partners 3rd Party Vendors Cisco Cisco Capital Business Solution Industry solutions lead with targeted solution, tie to Enterprise architecture. Targeted Solution Focus examples: COOP ETTF E-Radiology Intelligent Retailing Business Ready leads with architecture message, tie to how Industries benefit and Industry proof points. Architecture Focus examples: Resilient Virtual Intelligent Cisco’s Architecture Customer Advocacy Advanced Technologies Advanced Technologies Foundation Technologies Wireless Security IP Comms SAN / Optic Routers Switches

SIP Objectives Grow incremental revenue in critical markets Boost partner profitability for resellers integrating Cisco into the solution sale Increase the business relevance of the network Expand the usage/need for network bandwidth Support the channel partner value model

SIP Benefits To Customer To Partner To Cisco Creates greater intimacy and understanding of business imperatives Adds business value to the network Improves customer satisfaction To Customer To Cisco Rewards solution investment Provides differentiation Improves profitability Increases value-add opportunities Increases business relevance of networking Creates budget for networks Improves partner profitability Encourages channel focus on value-add

PROGRAM FRAMEWORK

Program Workflow Pre-qualification (one time per solution) 1 2 Deal Registration (one per deal) Evaluation (annual review) 1 2 3

Program Workflow Pre-qualification (one time per solution) 1 2 Deal Registration (one per deal) Evaluation (annual review) 1 2 3 Partner submits Solution Business Plan Program Council validates solution Business Plan Pre-Qualified Partner (evaluated annually) approve deny REJECT Channel (CAM) review solution

Program Workflow Pre-qualification (one time per solution) 1 2 Deal Registration (one per deal) Evaluation (annual review) 1 2 3 Partner submits Solution Business Plan Program Council validates solution Business Plan Pre-Qualified Partner (evaluated annually) approve deny REJECT Channel (CAM) review solution Pre-qualified? Field (CAM/AM) validate registration Program Mgr validates approve deny REJECT Deal Protection (review at 6 months) no yes

Program Workflow Pre-qualification (one time per solution) 1 2 Deal Registration (one per deal) Evaluation (annual review) 1 2 3 Partner submits Solution Business Plan Program Council validates solution Business Plan Pre-Qualified Partner (evaluated annually) approve deny REJECT Channel (CAM) review solution Pre-qualified? Field (CAM/AM) validate registration Program Mgr validates approve deny REJECT Deal Protection (review at 6 months) no yes no REMOVE Met min. revenue: SMB - $200K Enterprise - $1M Met at least 70% of forecast? yes RENEW Partners removed from program may not reapply for six months.

SIP Prequalification: Partner Pre-requisites Cisco Certified Partner (Gold, Silver, Premier) Specialized in appropriate technology identified as part of the solution definition Has existing installed base of customers in target market Documented Business Plan for driving solution Selling model targets Business Decision Maker Sales team is solution focused Provides unique solution competency

SIP Prequalification: Solution Criteria Repeatable Includes Business Relevant Application Includes Solution Support Services Includes Cisco Technology (recommend AT) Expands need for network bandwidth Reference Architecture includes Cisco Cisco product and services is no more than 70% of solution opportunity Two reference accounts that have installed solution within past 12 months Minimum revenue per year (list to Cisco): $200K in SMB or $1M in ENT Minimum deal registration transaction size (list to Cisco): $20K in SMB and $100K in ENT

SIP Deal Registration: Requirements Partner solution prequalified for the SIP Registration must be for partner-approved solutions only Partner must be a Cisco Gold, Silver, or Premier Certified Partner Incremental business generated by partner Minimum deal size for Cisco products and services: SMB/Commercial $20K at list price Enterprise $100,000 at list price Partner completes and documents presales milestones: Identify primary decision makers, budget, and timing of opportunity Determine end-customer business issues and requirements Perform end-customer phone and face-to-face sales calls Provide high-level design to customer Registration must be prior to an end customer RFP to be eligible NOTE: Partners CANNOT stack OIP and SIP SIP discount accounts for partner “hunting” efforts All deal registration based programs protect the first partner to register the deal and complete the pre-sales milestones. If the deal is first registered and approved under SIP, it is not eligible for OIP. If the deal is first registered and approved under OIP, it is not eligible for SIP.

Solutions Example Vertical Market Applications Cisco Technologies HealthCare Nurse Call Patient Monitoring Location based services Collaborative Care PACS (E-Radiology) FT Upgrades WLAN + WCS Security IP Communications/Unified Communications IP Wireless Phones Call Manager MeetingPlace / VT Advantage Connected Real Estate Building Automation IP based Physical security  ( access control, video surveillance, fire ) Converge applications that drive collaboration and increase productivity increase in workplace WLAN Retail Customer Relationship Management Billing POS Warehouse Management System Manufacturing Supply Chain Management Xtended Markup Language Transportation Logistic/Warehousing Employee Resource Planning

APAC SIP Model Run pilot program for 6 month period, effective Q1 FY06 Target countries to include: Australia New Zealand China Korea Taiwan SIP rebate of 4% list, SIP stackable only with VIP* SIP is a backend rebate program SIP applicable to all products and must include AT Mandatory maintenance attachment on all products for 1 year minimum (Cisco Shared Support Program or branded resale) India Singapore *based on current VIP% program rules

Expectations of the Partner: Registration Solution Pre-qualification Deliverables Business Plan Reference Architecture Installed Base Deal Registration Deliverables Customer name & contact info for opportunity Opportunity description Cisco products included Estimated budget & decision date Sales Visit Report High Level Design

How Do Partners Get Started Visit http://www.cisco.com/go/ap/sip Review online program documents (presentation, program rules, Q&A) and download business plan Partners send completed business plan to their CAM and the SIP alias: apac_sip@cisco.com. Each partner solution requires a business plan. Partners will receive notification within 10 business days via e-mail.

How to Learn More SIP Website: http://www.cisco.com/go/ap/sip Presentation Q&A Program Rules User Guide Business Plan Template Program alias for submitting solution business plan and general questions: apac_sip@cisco.com Submit presales milestone documents to: apac_sip@cisco.com Deal Registration Approval Tool: http://www.cisco.com/go/deals

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