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Transitioning Partner Core-Bridge Services to Partner Support Service Under the Cisco Services Support Partner Program Sneha Matani CSPP Program Manager India Date: 24th March 2014
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Agenda Executive Summary Cisco Service Partner Program and
Partner Support Service Overview PC-B to PSS Transition PSS TelePresence Video Eligibility Requirements Partner Compensation PSS TelePresence Video Pricing Summary PSS TelePresence Video Service Levels PC-B Transition Roadmap Resources
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Executive Summary PC-B will end of life (EoL) April 26, 2014 (US PST)
Migration of exiting PC-B contracts will occur at renewal Global availability of PSS Cisco TelePresence Video April 27, 2014 (US PST) Partner Support Service TelePresence Video Partner SS offer for the full line of Cisco TelePresence® Video Products Specific eligibility criteria to access PSS TelePresence Video Next business day and premium service levels (8x5x4 and 24x7x4) as well as SW Support and Upgrades Rebates and discounts per the Cisco Services Partner Program performance driven compensation model PC-B to PSS Transition Highlights Includes coverage for all Cisco TelePresence Video products Adds premium service levels Pricing is aligned to CSPP performance driven strategy comprising of discount and back end performance rebates For PC-B partners with Advanced, Advanced Plus, and Master level TP Video ATP who meet PSS transition performance targets Go-To-Market - Direct and through distribution NOTE Delete or change time for your region
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Cisco Service Partner Program and Partner Support Service Overview
REMOVE
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What Partners Are Telling Us They Want
Growth Expand the Services Practice Increase Operational Efficiency Customer Loyalty and Cross-Selling Competitive Differentiation Profitability In 2010 Cisco engaged a third party company to interview partners around the globe about their server support business. The partner survey results highlighted the following key issues for our partners: Profitability: When the Unified Computing System family of products launched in 2009, the only service option available to partners was Cisco Brand Resale. What we heard from many partners is that they have the desire and ability to support this technology themselves and are looking to improve their profitability through increased discounts commensurate with their expanded role. Typically the server market is a very low margin market and many partners are looking to improve their margins by taking more of the support business in- house. Differentiation from competition: Many partners already involved in Cisco’s shared support and collaborative technical service programs are frustrated by the fact that most server vendors only allow partners to resell or deliver against vendor brand services. They see opportunities to Differentiate their service offerings from their competitors’ by wrapping their own value-add services around a minimal vendor offering Offer their own service for solutions they have built from Cisco UCS combined with other Cisco technologies Customer loyalty: Partners are looking for more opportunities to grow customer relationships. Being the single point-of-contact for UCS customers, providing consistent experience for customers’ across their IT infrastructure are seen as an important way to building customer loyalty . Operational efficiency: Partners are looking for a consistent set of offerings from their vendors that enable them to build their own offerings across their customers’ data center environments. Partners do not want to waste time dealing with complexities of building offerings from disparate vendor services – particularly within a single vendor. Expand service practice: Partners are constantly looking for ways to grow their business and provide additional value to their customers. REMOVE Cisco Services: Responding to Your Needs
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Going to Market Together
Cisco Services Partner Program (CSPP) Cisco Services Partner Program Cisco Branded Services Eligibility Compensation Collaborative Services Performance Management The Cisco Services Partner Program provides the framework for our services business relationship with our partners and defines program elements such as offer eligibility, compensation, and associated legal terms and conditions as our partners access, sell, and deliver value-based services together with Cisco. The program is closely aligned to the Cisco Channel Partner Program to further extend the benefits our partners will receive from their investments in Cisco certifications and specializations The Cisco Services Partner Program simplifies how you access, sell, and deliver the Cisco services portfolio moving forward. By introducing a single services partner program, we create: A consistent set of eligibility requirements A predictable compensation and rewards structure A simplified contract relationship for services moving forward The program provides access to our enhanced services portfolio for partners, including smart services. The services family includes two distinct portfolios, Branded Services and Collaborative Services, each providing a different option for how you sell and deliver Cisco services based on your business model, investment objectives, and customer needs. ©2011 Cisco and/or its affiliates. All rights reserved. This document is Cisco Confidential. For Channel Partners only. Do not distribute.
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Cisco Branded Services Collaborative Services
A Simplified Approach Cisco Branded Services Network Optimization Service Remote Management Services Smart Net Total Care SMARTnet with Smart Call Home NOS with Smart Analytics Technical Support Advanced Services Collaborative Professional Services Collaborative Technical Support (for example PSS) Collaborative Services Collaborative Services Cisco service offerings sold only to partners and have eligibility requirements Combines Cisco deep knowledge base, smart service innovation, and service infrastructure with your services Partners are responsible for the customers’ service experience Cisco Branded Services Cisco service offerings sold through partners Ready-for-resale offers that speed time to market, increase technology and geographic reach Cisco is responsible for the customers’ service experience
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Partner Support Service Capabilities: Foundation and Smart
Partners develop and deploy services based on both foundational and smart capabilities* * Partner Support Service combines Cisco’s Foundational capabilities with installed base management, alert reporting, device diagnostics, and smart interaction capabilities that you embed into your service offers…combining visibility to end customer devices and networks with Cisco intellectual capital….resulting in increased services revenue opportunities, lower operational support costs, and more intimate customers relationships. Drive Incremental Services Revenue Improve Operational Support Margins Increase Customer Loyalty * Today, smart capabilities are available on many of our TelePresence Video products. Coverage for additional products will be available over time. Please contact your Cisco representative for a complete list of available products
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PC-B to PSS Transition
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Cisco Partner Core-Bridge Program
What is the Cisco Partner Core-Bridge Program? The Cisco Partner Core-Bridge Program is a globally available Collaborative Services program designed to help eligible Cisco TelePresence Video Authorized Technology Provider (ATP) Partners continue to grow their business video services practice. When the work began to create this program, Cisco teams met frequently with partners to understand your concerns and program requirements so we could build a consistent and profitable program where you could continue your video service practice without interruption. We also shared information on how the program was evolving with partners and the sales teams alike. Based on these activities, we believe the program includes the critical elements for joint success. Unlike Alternative Programs, Partners are able to : Protect and build upon existing services investments Leverage Collaborative approach and Cisco Services logo to differentiate and increase brand recognition and preference Deliver a complete end to end video solution Increase profitability through Cisco’s comprehensive Support capabilities Let’s move into the next slide to learn more about the details of the program…. Cisco Partner Core-Bridge Program Globally available Collaborative Service program Helps eligible Authorized Technology Provider Program (ATP) Partners continue to grow their business video service practice Cisco Partner Core-Bridge Program Protect and build upon existing services investments Utilize Collaborative approach and Cisco Service logo to differentiate and increase brand recognition and preference Deliver a complete end-to-end video solution Increase profitability through Cisco’s comprehensive support capabilities Partners Benefits
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PC-B to CSPP/PSS Transition
Today Tomorrow PC-B support for all Tandberg TP Video products PSS support for ALL TP Video products PC-B Partners PSS Qualified PC-B partners have access to PSS and Advance or better ATP. Await creation of the new PSS TelePresence Video service levels. Not PSS Qualified PC-B partners with Advanced or better ATP need to meet PSS Transition Targets How the Change impacts the CSPP/PSS Transition Eligibility This change impacts CSPP/PSS Transition Eligibility in a variety of ways. This slide seeks to show the main ways depending on region and partner type. Looking at the left side of the slide there are two types of regions Those regions where CSPP has already rolled out Those regions where CSPP has yet to roll out (such as China, Japan, Latam, & Emerg-East) In each region there are two types of partners: Partners that qualify for PSS broad eligibility Partners that do not qualify for PSS broad eligibility Let’s 1st discuss the partners in the region where CSPP has already rolled out. Working from the top down those partners that qualify for PSS broad eligibility These partners either have access to PSS today Most of these partners also have access to the PSS Video service offer. The green arrow at the top represent these partners There are 182 of these partners in the regions where CSPP has rolled out These partners are already in PSS They simply await the Video SKUs for Tandberg to go live in PSS 8 partners (that qualify for PSS broad eligibility) only have the Express TP Video ATP The blue arrow (2nd from the top) represent these partners These partners need fulfill a portion of the PSS-Video DE. That is they need to step up to at least an Advanced ATP: ~$25K investment. In the region where CSPP has already rolled there 175 partners that do NOT qualify for PSS broad eligibility These partners need to qualify for PSS DE for Video to continue their business of providing collaborative technical service for the former Tandberg product portfolio. The mauve arrow (3rd from the top)represents these partners As part of PSS-Video DE, these partners will need to meet the CSPP/PSS metrics targets as defined in the PMA that governs their region. Since these partners are already enrolled in CSPP; that scorecard used for this metric evaluation. Of the 175 partners, ~36 have an Express level ATP and will need to step up to at least the Advanced ATP level. The lower 3 arrows represent partners in regions where CSPP has yet to roll out. The story is similar but with a little twist. This section of the slide (where CSPP has yet to roll out) is graphically a mirror image of the portion of the slide that depicts the regions where CSPP as rolled out. So working from the bottom-up: The green arrow represent ~111 partners who: We expect to qualify for PSS broad eligibility And get access to PSS video service offer. These partners await CSPP to go live in their region as well as the PSS Video SKUs for Tandberg to go live There are an additional 18 partners that we expect to qualify for PSS broad eligibility yet they only have the Express TP Video ATP The blue arrow represent these partners And again, these partners will need to step up to at least an Advanced ATP In these regions ~118 partners do NOT qualify for PSS broad eligibility Again a mauve arrow represents these partners Like their counterparts in regions where CSPP has already rolled out, these partners need to qualify for PSS DE for Video to continue their business of providing collaborative technical service for the former Tandberg product portfolio. So like their counterparts these partners will need to meet the CSPP/PSS metrics targets as defined in the PMA that governs their region. Because these partners have yet to enroll in CSPP; their PC-B scorecard will be used for the metric evaluation. Of these 118 partners, ~46 have an Express level ATP and will need to step up to at least the Advanced ATP level. Bottom line: PC-B partners either already meet the CSPP/PSS eligibility targets or they will as part of the transition process. Express ATP Partners PC-B partners with Express ATP will need to make other plans Will need to make alternative plans (i.e. CBS) PMA = Performance Management Appendix for the CSPP program guide Note: PC-B End-of-Life is April 25, 2014
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PC-B to PSS TelePresence Video Transition Summary
26-Apr-2014 PST–PC-B will end of life; migration of exiting PC-B contracts will occur at renewal 27-Apr-2014 PST–Global availability of PSS TelePresence Video Includes Technical Services for all Cisco TelePresence Video products Available to 1-Tier, 2-Tier Partners Includes new 4-hour service levels Partners must meet PSS TelePresence Video eligibility Performance driven compensation is outlined in the Cisco Performance Management Appendix, located at PC-B to PSS TelePresence Video Transition Summary Dates are Pacific Standard Time
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Transition to Partner Support Service
Tomorrow Today Multiple ways to participate. Two programs, two separate offers. Programs: Partner Core-Bridge Cisco Services Partner Program Offers: Tandberg products Partner Support Service Cisco products Simplicity. One program, one offer. Program: Cisco Services Partner Program Offer: Partner Support Service All TelePresence Video products Partner Core-Bridge EOL Partner Support Service Video
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What is changing? Tomorrow Today Partner Benefits
Up front discounts only Cisco Services Partner Program Rewards Performance (Discounts + Rebates) Incremental margin opportunity based on performance Standalone collaborative offer Alignment to Cisco Partner Support Service for video service levels Single Cisco Collaborative PSS offer Partner Core-Bridge standalone program Single Cisco Services Partner Program Simplified Cisco/Partner relationship Tomorrow Today Partner Benefits Next Business Day level of service Multiple levels of service: Next Business Day and 4 hour More ways to serve end users (improved productivity, quicker time to resolution) Service on Tandberg products only Full line of Cisco TelePresence Video products Broader coverage
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Program and Offer Comparison
PC-B CSPP Partner compensation Front end discount only Discount and Rebate based on performance Performance metrics (AR, RR, SR, RMA) Quarterly Metric Tracking for on-going eligiblity Annual Performance Tracking for on-going eligibility and Quarterly track for rebate Eligibility TelePresence Video ATP & Delivery Capability TelePresence Video ATP (excluding Express) and Delivery capability OFFER PC-B PSS TelePresence Video Route to Market All Routes To Market Geographies Global Products TANDBERG classical All Cisco TelePresence Video products Pricing TANDBERG original pricing Buy price is based on performance Targeting same net buy price for average performer in a geography Service Levels NBD, SW support and upgrades NBD, SW support and upgrades, 8x5x4 and 24x7x4 Rebate based on performance Buy price is based on performance Factors rebate in change/addition
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PSS TelePresence Video Eligibility Requirements
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PSS TelePresence Video Eligibility Overview
Access to the PSS TelePresence Video service levels requires video technology specific eligibility criteria. See slides 16 and 17 for details. Eligibility for the PSS TelePresence Video service levels is independent of the eligibility for any other PSS service levels Access to PSS TelePresence Video service levels does not give a partner access to any other PSS service levels PC-B partners must meet the regional transition requirements for the measurement periods prior to getting access to PSS TelePresence Video Once eligible for PSS TelePresence Video service levels, partners must continue to meet ongoing performance metrics
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PSS TelePresence Video Eligibility Requirements
Any Partner is eligible for the PSS TP Video service levels if they meet the following requirements: Enroll in Cisco Services Partner Program (CSPP) Attain Advanced, Advanced Plus or Master TelePresence Video ATP Meet the performance targets per the Cisco Services Partner Program Performance Management Appendix (PMA) for your region Pass Cisco On-site audit or TS Delivery Validation* Recommendation: Dedicated TelePresence Video Technical Support Lab Video Diagnostic training *These requirements do not apply to partners transitioning from Partner Core-Bridge PSS TelePresence Video Eligibility Requirements
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PC-B Partner Transition Requirements
Any PC-B Partner is eligible for the PSS TP Video service levels if they meet the following requirements: Enroll in Cisco Services Partner Program (CSPP) Attain Advanced, Advanced Plus or Master TelePresence Video ATP PC-B Partner Transition Requirements
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PSS TelePresence Video Ongoing Eligibility
Maintain Advanced, Advanced Plus or Master TelePresence Video ATP on a monthly basis Meet minimum theatre-specific annual threshold performance requirements per the Cisco Performance Management Appendix PSS TelePresence Video Ongoing Eligibility
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Current Partner Characteristics Offer Starting April 27 PST, 2014
PC-B Partner Transition Map for TelePresence Video Current Partner Characteristics Current Offer Offer Starting April 27 PST, 2014 TP Video ATP - Adv or higher PC-B only PC-B PSS TP Video TP Video ATP - Express PC-B Only Cisco Branded Service TP Video ATP - Adv or higher PC-B and PSS PSS TP* * PSS TP – existing PSS services levels on Cisco legacy products only
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Options for PC-B Express Partner
PC-B Partners with TelePresence Video Express ATP level have the following options: Upgrade to Advanced ATP level before March 24, 2014 Purchase Cisco Branded Services (CBS) Express ATP partners who don’t move up to Advanced ATP or higher are ineligible for PSS TelePresence Video.
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Partner Compensation
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CSPP Performance Driven Compensation
Front-end Discount* Back-end Rebates Partner $$ Buy price is based on partner performance Sales Performance Delivery Performance Attach Rate Service Request ratio Renewal Rate RMA ratio Discount and rebate details can be found in the regional 1-Tier and 2-Tier Performance Management Appendices. These are located here If eligible, additional Services Sales Discount Incentive (SSDI) in EMEAR Discounts for 2 Tier Partners are provided by their Distributor
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PSS TelePresence Video Pricing Summary
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Pricing Principle Adjust schedule price based on CSPP partner compensation structure Partner buy price neutral for average performing partners in a given Geography
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Pricing Strategy – Net Buy Price Neutral
APAC Pricing Strategy – Net Buy Price Neutral PSS net buy price = PCB net buy price PSS PCB Schedule Price $116.08 $100 Discount 42% SSDI - Initial buy price $67.33 $58 Average rebate 13.85% Rebate $ $9.33 Net buy AR rolling 15 mon RR annual renewal number for the whole year
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PSS TP Video – APAC $116.08 PSS TP Video Schedule price Discount = 42%
PC-B Buy Price $100 List Price 42% Disc $58.00 net PSS TP Video – APAC PSS TP Video Schedule price $116.08 Discount = 42% Sales & Delivery Rebate = 0% Partner Cost After Discount: $67.33 Combined Rebate: $0 Net Cost: $67.33 Maximum Performance Under Average Performance Schedule Price Discount = 42% Sales & Delivery Rebate = 13.85% Partner Cost After Discount: $67.33 Combined Rebate: $9.33 Net Cost: $58.00 Discount = 42% Sales & Delivery Rebate = 32.40% Partner Cost After Discount: $67.33 Combined Rebate: $21.81 Net Cost: $45.51
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PSS TelePresence Video Service Levels
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Service Offer Transition
Products Covered Current Offer Offer Type Program All TelePresence Video Essential Operate Cisco Branded CSPP TANDBERG Partner Core-Bridge Collaborative Cisco legacy PSS (TelePresence) Products Covered 4/27/ Offer Offer Type Program All TelePresence Video Essential Operate Cisco Branded CSPP PSS (TelePresence Video) Collaborative
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PSS TelePresence Video Service Levels
Deliverables PSS TelePresence Video Service Levels Corresponding PC-B 8x5xNBD Adv Replacement SW Support and upgrades PSRN PADN, PPDN, PMDN 8x5x4 Adv Replacement PSRE NA 24x7x4 Adv Replacement PSRP PSRU PAMU, PPMU, PMMU Supports All Cisco TelePresence Video Products TANDBERG product lines
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Partner Benefits of Transition to PSS TelePresence Video Under CSPP
Drive Profitability Increase services revenue by offering an expanded set of services that covers all Cisco TelePresence Video Products Rebates paid on premium service levels Performance–driven compensation plan yields higher margins Simplify Partner Business Relationships One program for all TelePresence Video products and partners reduces complexity of managing multiple programs Accelerate Customer Transformation Drive customer satisfaction by offering robust services across the TelePresence Video portfolio Enable partners to become their customers’ trusted advisor on the full line of Cisco TelePresence Video products Establish Competitive Differentiation Offer full suite of Cisco TelePresence Video products and services Align with Cisco Services Partner Program, a Market leading services program Cisco Services Partner Program offers competitive advantage based on performance Discount and rebate details can be found in the regional 1-Tier and 2-Tier Performance Management Appendices. These are located here
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To sum it up.. April 26th End of Sale of PCB globally
April 27th PSS Video TelePresence SKUs become available globally PSS Video TelePresence provide collaborative support service for full line of Cisco Video Products Specific Eligibility criteria to avail PSS Video CSPP Enrollement ATP Certification PSS Eligibility as per PMA Provides Premium Service Levels Follows CSSP Compensation Model No change in nett Buy Price No change to Cisco Branded Offerings Express Partners cannot sell PSS Video – Step up Certification A non-PSS partner can sell PSS Video as long as they meet minimum eligibility requirements
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PC-B Transition Roadmap
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What Can You Expect in the Coming Months?
August thru March PSDM partner engagements June 26 PST End of 60 Day Quote Protection 1st week in Dec Price list availability March 24 All partners enrolled in CSPP April 26 PST End of Sale/End of Life of the PC-B program April 27 PST Quote and order new Partner Support Service levels October 2013 November 2013 August 2013 September 2013 December 2013 January 2014 April 2014 May 2014 June February March 2014 Jan 26 By January 26 all partners will receive the Partner Core-Bridge Program End of Life announcement
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Resources
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Resources Cisco Closer Look (Detailed Training on CSPP)
Partner application and information website Cisco Services Partner Program Cisco Collaborative Services Partner Support Service Cisco Branded Services Further questions? Please contact your Cisco Service Sales Representative.
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Backup Slides
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How Does the Transition Impact Me?
Transition for PC-B Partners Partner Core-Bridge Partners who have Advanced or better ATP Video AND meet Partner Support Service transition performance targets All routes to market (1-Tier and 2-Tier partners) All geographies Who transitions? Grandfathering based on: Have Advanced or better ATP Video Meet PSS Transition performance targets where applicable (Review your PMA) All Routes to Market: 1-Tier & 2-Tier Express level partners have the opportunity to step up to Advanced level to qualify for the transition or take advantage of Cisco Branded Services CONSIDER THE FOLLOWING OPTIONS: Express Level Partner Achieve Advanced ATP or better, Participate in Cisco Branded Services
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