Once I take 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. Over the past 5 years, our enterprise has advanced considerably. As our current earnings present, subscription income now represents 56% of Cisco’s complete 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 prospects desire to devour 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 and products that meet the wants of buyer challenges. In recognition of this, it’s time for our companion applications to proactively align with this evolution, positioning Cisco’s ecosystem to steer reasonably 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 may have already begun this journey – constructing integration practices, growing 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 strategy collectively, making a program that helps not simply the place the enterprise is immediately, however the place it’s headed tomorrow.
Managing the Buyer Lifecycle Whereas Staying Dedicated to Companion Profitability
I wish to be crystal clear about one thing – our program and incentive evolutions will not be about decreasing what we spend money on 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 prospects 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 totally new markets and segments by way of our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – changing into a vital a part of our prospects’ each day operations. By means of this advanced partnership strategy, we’ll acquire deeper buyer insights that drive innovation – seeing not simply what prospects do with our options, however how they match into their full know-how stack.
A Considerate, Phased Method
I perceive these modifications straight affect what you are promoting operations and profitability. That’s why we’re taking a measured, two-phase strategy that gives stability whereas permitting time to adapt:
Beginning July 27, 2025:
- By means of the Worth Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic affords and adoption-based incentives
- The Buyer Evaluation Incentive will provide 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
- This can change a number of siloed applications, making it simpler to grasp, 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 device (accessible 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 group and I are dedicated to making sure this transition creates new alternatives for progress
After we evolve collectively, we win collectively. The power of Cisco has all the time been our companion ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create a fair stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable progress for all of us.
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