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© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco Services for Small and Medium Business - Partner 1

Cisco Services for Small and Medium Business

John Paul SilvestreCisco Services Marketing ManagerMay 31, 2007 Cisco Services.

Making Networks Work.Better Together.

2© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco Services for Small and Medium Business - Partner

Preview

Value of Selling Services


Cisco Smart Care Service

Programs & Tools

Questions


Value of Services


Service Contracts Drive SMB Loyalty

40%

50%

60%

70%

80%

Source: 2007 Cisco Customer Satisfaction Survey, Data as of March, 2007

Without Service Contract

With Service Contract

73%79%

Cisco SMB Customer Loyalty


What Is Customer Loyalty Worth?

5% increase

75% increase

A 5% increase in customer retention, due to increased loyalty, yields a staggering 75% increase in the net present value of an existing customer

Value of Customer Loyalty

Customer Loyalty

Net Customer Value

Current Customer

Relationshipyields

Source: Frederick F. Reichheld, Loyalty Rules!


Services Increase Partner Margins

Source: BestPerformer™ Benchmark 2006 Report, www.service-leadership.com

0%

10%

20%

30%

<20% 21-40% 41-60% 61-80% >80%

Services as a % of Total Business Mix

Partn

er M

argi

ns


Cisco Go-To-Market Approach

Sold by Cisco or partner,

delivered by Cisco

Sold by partners, delivered by partner

and Cisco collaboratively

Sold and delivered by partner

Cisco Services Collaborative Services Partner Services


Lifecycle Services

Plan Design ImplementPrepare Operate Optimize

Partner Services

OptimizePPDI Operate

Collaborative ServicesPartner Value Added Services

Cisco Services

Partner Enablement


Operate and Optimize Services


Cisco SMARTnet ServiceCisco Smart Foundation Service*

Partner Services

NEW

Technology and Application Services

Value-added services wrapped around Cisco Services or Collaborative Services

Cisco Services

Collaborative Services

*Cisco Smart Foundation Service was previously called SMB Support Assistant


Spotlight on Smart SMB Services

Cisco Smart Care

Service

Cisco SMARTnet

Service

Cisco Smart Foundation

Service*

*Cisco Smart Foundation Service was previously called SMB Support Assistant


SMARTnet Service

An award-winning technical support service that offers direct, anytime access to Cisco engineers and extensive technical resources, SMARTnet delivers rapid issue resolution, flexible device-by-device coverage, and premium service options to help maximize operational efficiency

Target CustomerAny size business, any number of Cisco devicesNetwork is critical to mission criticalSkilled IT staff who require direct access to Cisco engineers and want flexible device-level coverage for all network devices

Go-to-MarketCisco delivered, Cisco service

FeaturesAdvance Hardware Replacement—(NBD, 2-hour, 4-hour and/or onsite parts replacement and installation)24x7 direct customer access to TACCisco.com knowledgebase and toolsOperating system software updates and upgrades

Cisco SMARTnet

Service


Smart Foundation Service

*Cisco Smart Foundation Service Was Previously Called SMB Support Assistant

Target CustomerBusinesses with data only networks, SMB-class productsNetwork is important, but not mission critical, to businessNeeds responsive support with device level coverage that meets budget requirements

Go-to-MarketCisco delivered, Cisco service

FeaturesAdvance Hardware Replacement—NBDBusiness hours access to SMB TACCisco.com SMB knowledgebaseOnline network troubleshooting tools designed for SMBsOperating system software updates for bug fixes

Cisco Smart Foundation

Service*

An entry-level technical support service that provides the support that businesses need to help them maintain network reliability and minimize disruption to business


Warranty vs. Service

Service Features SMARTnet Smart Foundation Warranty

Technical Assist Center (TAC) Support

24 Hour configuration, diagnostic &

troubleshooting

Full cisco.comaccess

8x5xNBD8x5x4

24x7x4

Cisco.com

8-5 business day

Guest access

Software minor & major releases

SMB SAPortal/Client

Minor Software Updates

8x5xNBDAdvance Replacement on Parts 10 days


Smart Care Service

Comprehensive network-wide service that combines technical support with proactive monitoring, assessments and remote repairs to keep networks secure and running optimally

Target CustomerBusiness with 5 to 105 devicesNetwork is critical to businessLimited IT expertise; wants network-level coverage

Go-to-MarketPartner delivered, collaborative service

FeaturesProactive network-wide monitoring, assessments and notificationsAdvance Hardware Replacement—NBD24x7 partner access to TACCisco.com knowledgebase and Smart Care PortalOperating system software updates and upgradesSoftware application updates

Cisco Smart Care

Service


Introducing Cisco Smart Care Service Personalized Service for Commercial Customers

Network Aware Proactive andAutomated

ExclusivelyThru Partners

Network-Level Coverage

Dashboards

Assessments

Value-Based

PersonalizedNotifications

Remediation


Tools for Partners

IPC LAN Analysis

Pre-Sales IPC WAN Analysis

IPC WAN Traffic Monitor

IPC Server Monitor

IPC PSTN Gateway Monitor

Voice & Advanced Network Tools

Device Inventory Reporting

IOS Deferral Analysis w/Fix Capability

IOS Security Analysis w/Fix capability

Access to Cisco Case Management

Device Diagnostics for HW/SW Issues

Base Network Level Tools


How Does It Work?Network Discovery, Assessment, and Repair

NETWORK DATA

CLIENT

Reactive SupportProactive Maintenance

Installed Base

BusinessIntelligence

NETWORK

TAC

Customer Partner Cisco

Network Monitoring & Assessment

RMA

TechSupport

NetworkAssessment

andRepair

Value Add Partner

Services

Smart Care Service Partner Dashboard


Partner Control Panel

WelcomeDashboardCustomers

Customer 2Alerts/NotificationsCoreSecurityVoice (VOIP)Device InventoryService Report HistoryOptions/ConfigurationSupport

Customer 3*same as other customer

AdministrationCustomer ManagementServices ManagementAppliancesToken Management Profile / System ConfigurationUsersPersonal Profile

SupportHelpDownloads

Contents

Device Support MatrixSoftware Update HistoryOperate and Optimize WebsContact Cisco

--

---

-

-

Dashboard: All Customers

Alerts Core Technologies Security Technologies Voice (VOIP) Technologies

PSIRT

!!

Time Since Last

Assessment

Cisco Device Status

Field Notices

Time Since Last

Assessment

Cisco Device Status

! x!

xx

––

xx

Network Status Customer EOX

Time Since Last

Assessment

Cisco Device Status

x Customer 1 xx Customer 2 ! x


Viewing Alerts and Notifications


Customer Dashboard

Device Availability

Availability99.90%

Downtown0.10%

Downtown Availability0

2 2

0

0.5

1

1.5

2

Availability NetworkService

Security

Service Ageing

Last

Ass

es D

ays

31

1 03

0

10

20

30

40

Minor Medium Severe Critical

Security

Num

ber o

f Vu

lner

abilit

ies

Severity

0

20

40

60

80

100

11-16:05:28 12-09:05:28Util

izat

ion

Per

cent

age

CPU Bandwidth

Network

PartnerLogo


Business Elements

100% Network coverage (on Cisco devices)

Simplified pricing modelSize of networkApplications on network

Auto-renewal subscription model

Flexible payment structureMonthly/Quarterly Billing w/o POQuarterly true-upsPayment options (credit card, invoice, EFT)


Qualification for Cisco Smart Care Service

Select Certification or higher

Agree to provide technical support—8x5 business hours

Complete live or online training

Pass Cisco Smart Care Service online exam

Register as a Cisco Smart Care Service Partner


Pricing Strategy Product Strategy Alignment - Commercial Class Products IncludedChannel Program Alignment – Pricing Level aligned to Specializations

Express Unified Communications

Specialization

Minimum Premier or

Select

Advanced Unified Communications

Specialization

Advanced Voice Technologies:IPCC Express, Call Manager, Unity,

Meetingplace Express

Voice Technologies:Call Manager Express, Unity Express, IP Phones (Not in device count)

Minimum Premier or

Select

Security & Storage Technologies: ASA 5505, 5510, VPN 3000, MDS9000, IPS Service (Future)

Routing, Switching, Basic Security:800, 1600, 1700, 1800, 2600, 2800, 3600, 3200, 3700, 3800, 5400, 7200SOHO 70, SOHO 90, 500, 2900, 2940, 2950, 2960, 2970, 3550, 3560, 3750, 3900, 400*, 4500 ,5000, 6500PIX, AP1xxx

Pricing Level 1

Routing, Switching & basic security

Pricing Level 2

Level 1 plus security

Pricing Level 3

Level 2 plus CM Express and Unity

Express

Pricing Level 4Level 3 plus Call

Manager, Unity, IPCC Express, MeetingPlace

Express


Preliminary Cisco Smart Care Service Price to the Partner – CDN dollars

Number of devices in network (bands)Feature Levels 5-7 8-10 11-14 15-18 19-30 31-42 43-57 58-72 73-88 89-105Level 4 $4,027 $6,040 $9,060 $13,590 $19,706 $27,588 $38,624 $52,142 $70,392 $95,029

Below plus Call Manager, Unity, IPCC Express, MeetingPlaceExpress Level 3 $3,452 $5,178 $7766 $11,649 $16,891 $23,647 $33,106 $44,693 $60,336 $81,453

Below plus CM Express and Unity ExpressLevel 2 $2,761 $4,142 $6,213 $9,320 $13,512 $18,918 $26,485 $35,754 $48,268 $65,162

Below plus securityLevel 1 $2,301 $3,452 $5,178 $7,766 $11,261 $15,765 $22,071 $29,795 $40,224 $54,302

Routing, Switching & basic security

Phones and software licenses are NOT considered an individual device in device counts.The price will represent the total cost to the partner for customer’s entire Cisco network The level for the entire network is determined by the highest single application or device discoveredSome complex product series have an increased device count weighting


Learn More

Learn about the Cisco Smart Care Service

Visit www.cisco.com/go/smartcare for more information

General Availability in September 2007

Learn More

http://www.cisco.com/go/smartcare


Service Options that Meet Customer Needs

Coverage Preference

Self Service NetworkImportance

Preferred Provider

Coverage Preference

Hardware Replacement

Smart Care

SMARTnet

Smart Foundation

NetworkPartnerCriticalProactive

DeviceCiscoCritical to Mission Critical

Responsive*

DeviceCiscoImportantResponsive

2-hour, 4-hour or NBD

NBD

NBD

*SMARTnet includes proactive diagnostics and real-time alerts on select devices


Programs Designed for Your Service—Practice Building!

Attach Renewal Multi-year Incentive ProgramBest practices sharing programSales staff prizes/ Joint Marketing

www.cisco.com/ca/go/arm

Steps to Success Provides Cisco methodology to support the sales, delivery, and support of Advance Technologies

www.cisco.com/go/stepstosuccess

Interest-Free Services Financing Promotion Commercial financing with multiyear financing rates with as low as 0%

www.cisco.com/go/ciscocapitalfinance


Sales Tools

• Cisco Services Homepage- Details on Cisco Technical Support Portfolio, www.cisco.com/go/services

Services Contract Center- Contract management, and pricing repository http://cisco.com/public/scc/

• Cisco Partner Central - Comprehensive list of the partner tools available from the Cisco Channel Partner Program, www.cisco.com/web/partners/tools.html

http://www.cisco.com/go/services

http://cisco.com/public/scc/

http://www.cisco.com/web/partners/tools.html


Closing Comments

Become familiar with the Cisco Services for SMB portfolio

Leverage Cisco tools and programs to build success

Leverage the CSAM and distributors’ Cisco Services Specialists

- Ingram Micro, Yavor Mihov- Tech Data, Peggy Textor

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