After I take a look at Cisco’s historical past, I’m extremely happy with what we’ve constructed – a world-class {hardware} portfolio that’s been the muse of our shared success. During the last 5 years, our enterprise has advanced considerably. As our latest 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 elementary shift displays how our prospects choose to devour expertise and the altering nature of worth creation in our business.
These modifications mirror Cisco’s ongoing innovation, not simply in enterprise mannequin but additionally in services and products that meet the wants of buyer challenges. In recognition of this, it’s time for our accomplice packages to proactively align with this evolution, positioning Cisco’s ecosystem to steer relatively than reply to market modifications.
The Path Ahead
The market is shifting in direction of outcome-focused expertise 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 will have already begun this journey – constructing integration practices, creating software program capabilities, and creating providers 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 present, 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 lowering what we put money into our partnerships. What’s altering is how we direct these investments to mirror the whole buyer journey. In truth, 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 whole 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 a vital a part of our prospects’ day by day operations. By this advanced partnership method, we’ll achieve deeper buyer insights that drive innovation – seeing not simply what prospects do with our options, however how they match into their full expertise stack.
A Considerate, Phased Strategy
I perceive these modifications immediately affect your online 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 whole LAER journey
- This may substitute a number of siloed packages, making it simpler to grasp, predict, and maximize your earnings
- The annuity payout on software program and providers and the Supply Rebate can 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 (obtainable in Might) 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
After we evolve collectively, we win collectively. The power of Cisco has all the time been our accomplice ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create an excellent stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable development for all of us.
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