Topic 3 – Commercial/SMBStephen Sinclair

a. Which tier(s) of customers do you target today? Is Cisco targeting the right tiers of customers (T1-2 Mid-Tier & SMBs)?- Focusing on Commercial is Right - key for New Business-Strategy on focusing “value” based customers is right BUT how can we identify them ? - Sales efforts today required to identify T1 & T2 customers – or convert Price buyers to see value

b. What are the biggest issues you are trying to solve for your customers today, and what are your key challenges in solving these issues?

c. What issues are your customers facing around increasing or sustaining their network spend? How can Cisco better support you in these areas? Enhancements to our end-to-end ‘value’ proposition?

- Very competitive Market - Competitive products are often good @ lower prices - Defining, communicating & selling Cisco Value proposition is key but challenging - -

Recommendations:- Train senior Managers of Resellers – “Why Cisco” – Arm Partners with Holistic Cisco Value proposition

- Cisco do better job “arming” Partners Sales to communicate Value Proposition - Training, ROI, Case Studies- Cisco / Resellers joint selling - TAMs go on more Sales calls with Partner to CXo of Customer - Need products with more appropriate price / Value proposition for SMB’s (i.e Handsets, Access points)

Commercial/SMB- RED TEAM End-Customer Requirements: How should Cisco support you better?

a. What are your thoughts about Cisco’s current Incentive and demand generation programs? - Limited awareness of any Cisco programs – but varies by countries -Too many programs to understand & remember –

Recommendations:- Need to Communicate Better on Relevant Programs for Resellers– Need to determine right means (i.e Regular emails, & Regular Conferences / updates / Placeware sessions (must be in local language)

Commercial/SMB - RED TEAM Demand Generation: How do we grow and hunt better together? (50mins)

-b. What key technology solutions & vertical markets should Cisco focus on over next 12 months?

- Vertical Priorities – Manufacturing (High priority across all countries) - Then next priority varies by country: Education, Finance & Banking, Healthcare, Retail, Hospitality, Professional Services

-In Smaller Geography – Hard to focus on only one or 2 verticals HAVE to sell across Verticals to generate required business

-Horizontal Solutions Priorities-Security – Top Priority -IPC (Awareness has increased but perceived as expensive – So Program must address ROI concerns (IP Surveillance)

-Solutions NEEDED -Horizontal & Vertical Solutions are needed:-Bundled Solutions – with Software companies like CRM – maybe Microsoft

Commercial/SMB - RED TEAM Demand Generation: How do we grow and hunt better together? (50mins)

c. What Marketing and Channel programmes should Cisco be developing to accelerate demand in these markets for your success?What do Resellers NEED Vertical example:-- Need Solutions INCLUDING eco-partners to have a Solution-Cisco to help with Training & Roadmap to succeed in the Vertical & ONGOING Cisco Reviews with Reseller to see how doing and how can optimize -Need Solution Guides & Sales Guides-Case studies- Partner Incentives & EU incentives-Market research to assist in targeting customers-Cisco to Drive End user campaigns to drive Demand-Joint Seminars -Co Branded Collaterals for partner that Reseller can use to market directly to End Users

What do Resellers NEED Horizontal “ Secure Biz Communications” example:--Awareness – Ads-Cheat sheets-Positioning of “Self Defending Network” – EU Sample Roadmap, case studies, How to upsell -White papers-End Customer and Partner Incentives (Distinct)-Joint Seminars with hands on Demo

Recommendations:-Focus on Manufacturing - Consider Finance & Banking-Security is a key focus – consider concept of “Secure Biz Communication”

Commercial/SMB - RED TEAM Demand Generation: How do we grow and hunt better together? (50mins)

a.Competitors Best Practoices

EMC-Deal registration gives you a discount Advantage Support (Exclusive)

Harbour Networks3 levels of support-If bring AM in – You get $$$ amount even if loose deal-If you write tender with Harbour – MORE $$-If you win – MORE $$$

SymantecExecutive Biz planning sessions with Cisco & Partner Teams

Sony Protection if register project – No other Reseller can sell

Commercial/SMB - RED TEAM Competition: How should Cisco respond? (20mins)

Topic 3 Commercial/SMB – BLUE TEAMSet up Led by Stephen Sinclair - Facilitators – Stephen, Kip, Carol

• End-Customer Requirements: How should Cisco support you better? (20mins)– Which tier(s) of customers do you target today? Is Cisco targeting the right tiers of customers (T1-

2 Mid-Tier & SMBs)?– What are the biggest issues you are trying to solve for your customers today, and what are your

key challenges in solving these issues?– What issues are your customers facing around increasing or sustaining their network spend? How

can Cisco better support you in these areas? Enhancements to our end-to-end ‘value’ proposition?

• Demand Generation: How do we grow and hunt better together? (50mins)– What are your thoughts about Cisco’s current Incentive and demand generation programmes?

(Channel Incentives – Channel Rewards, VIP; End User DG – Success Builder, Vertical Campaigns)– What key technology solutions & vertical markets should Cisco focus on over next 12 months?– What Marketing and Channel programmes should Cisco be developing to accelerate demand in

these markets for your success?

• Competition: How should Cisco respond? (20mins)– Which competitors should Cisco be most concerned about in the Commercial Market? Pick 2-3– What are these competitors doing from a channel and end user perspective to gain share?– What do our competitors do that we should replicate or learn from?– How can Cisco support you in taking share from these competitors?

a. Which tier(s) of customers do you target today? Is Cisco targeting the right tiers of customers (T1-2 Mid-Tier & SMBs)?

• Partners segment – size & budget

• Cisco segments by SME & behaviour

• Agree on segmentation – size & budget

b. What are the biggest issues you are trying to solve for your customers today, and what are your key challenges in solving these issues?

• Cost of ownership

• Increased resiliency

• Future proof their infrastructure (protect their investment)

• Ease of management

• On-Demand operating environment

Challenges: Ease of management – uptake of IP Tel

Commercial/SMB – BLUE TEAM

End-Customer Requirements: How should Cisco support you better?

c. What issues are your customers facing around increasing or sustaining their network spend?

• Customers want to do more with less• Mature market cyclical $• Customers don’t change vendor

How can Cisco better support you in these areas? Enhancements to our end-to-end ‘value’ proposition?

• Cisco Finance• IP Tel update – end to end

Recommendations:- Bundle generic cross-industry applications with products – IP Tel- Develop framework for partners to ensure quality – functionality, quality & uniformity- Communicate/educate partners on Cisco financing options- Cisco provide in-house demo equipment

Commercial/SMB – BLUE TEAM End-Customer Requirements: How should Cisco support you better?

a. What are your thoughts about Cisco’s current Incentive and demand generation programmes? (Channel Incentives – Channel Rewards, VIP; End User DG – Success Builder, Vertical Campaigns)

• Growth available in 837 market

b. What key technology solutions & vertical markets should Cisco focus on over next 12 months?HorizontalKorea: SecurityChina: SecurityNZ: SecurityTaiwan: IPC, Mobility & SecuritySingapore: Mobility, SecurityHong Kong: Security – firewall, CSA (not anti-virus)

VerticalsChina: retail & healthcareSingapore + NZ: Government & educationHK: All but governmentTaiwan: Military

• Security, mobility, IPC, storage, retail, healthcare, education, manufacturing, government, military

Commercial/SMB – BLUE TEAM Demand Generation: How do we grow and hunt better together? (50mins)

c. What Marketing and Channel programmes should Cisco be developing to accelerate demand in these markets for your success?

Recommendations:

• SP payment terms 300 days – be fair allow us similar terms + we will sell IPTel• Drop price of handsets will drive volume – release licence to 3 rd party to make cheaper• Create a product/bundle solution for under 50 users, wireless, CSA & firewall • Suggest to work with

• Product enhancementsa. Security as the primary focus – not competitiveb. Mobilityc. IPC – billing, call management, reporting, password access to IDD access, gateway solutionsd. Storage

• Channel programmesa. to create more awareness creation withb. Trade in program for old equipment including old phone systemsc. Apply vertical rebates to horizontal sales – if we achieve growth target we get rebate

Commercial/SMB – BLUE TEAM Demand Generation: How do we grow and hunt better together? (50mins)

a. Which competitors should Cisco be most concerned about in the Commercial Market? Pick 2-3

Security – Watchguard, Cyberguard, Netscreen, Checkpoint-

b. What are these competitors doing from a channel and end user perspective to gain share?--

c. What do our competitors do that we should replicate or learn from?---d. How can Cisco support you in taking share from these competitors?--

Recommendations:---

Commercial/SMB – BLUE TEAM Competition: How should Cisco respond? (20mins)

Topic 3 Commercial/SMB – GREEN TEAMSet up Led by Stephen Sinclair - Facilitators – Stephen, Kip, Carol

• End-Customer Requirements: How should Cisco support you better? (20mins)– Which tier(s) of customers do you target today? Is Cisco targeting the right tiers of customers (T1-

2 Mid-Tier & SMBs)?– What are the biggest issues you are trying to solve for your customers today, and what are your

key challenges in solving these issues?– What issues are your customers facing around increasing or sustaining their network spend? How

can Cisco better support you in these areas? Enhancements to our end-to-end ‘value’ proposition?

• Demand Generation: How do we grow and hunt better together? (50mins)– What are your thoughts about Cisco’s current Incentive and demand generation programmes?

(Channel Incentives – Channel Rewards, VIP; End User DG – Success Builder, Vertical Campaigns)– What key technology solutions & vertical markets should Cisco focus on over next 12 months?– What Marketing and Channel programmes should Cisco be developing to accelerate demand in

these markets for your success?

• Competition: How should Cisco respond? (20mins)– Which competitors should Cisco be most concerned about in the Commercial Market? Pick 2-3– What are these competitors doing from a channel and end user perspective to gain share?– What do our competitors do that we should replicate or learn from?– How can Cisco support you in taking share from these competitors?

a. Which tier(s) of customers do you target today? Is Cisco targeting the right tiers of customers (T1-2 Mid-Tier & SMBs)?- Mostly mid-market and SMB, one partner services the lower end SMB- Partners are looking to expand both up and down into other customer sub-segments

b. What are the biggest issues you are trying to solve for your customers today, and what are your key challenges in solving these issues?- Advanced technology sale helps Partner margins and adds value to Customers- Partners are challenged with acknowledging and servicing their Customer’s Customer ie being able to address compliance standards within verticals

c. What issues are your customers facing around increasing or sustaining their network spend? How can Cisco better support you in these areas? Enhancements to our end-to-end ‘value’ proposition?- Smaller customers are just looking for connectivity, don’t see the network as a strategic part of their business- For Mid Market, customers see the utility of the network which allows Partners to up/cross sell more

Recommendations:- Look to do more Marketing on relevance of Networking in the SMB space

Commercial/SMB – GREEN TEAM End-Customer Requirements: How should Cisco support you better?

a. What are your thoughts about Cisco’s current Incentive and demand generation programmes? (Channel Incentives – Channel Rewards, VIP; End User DG – Success Builder, Vertical Campaigns) -- VIP is well received. Good money coming back & gross margins have been improved- On VIP, suggestion of lower targets - Channel Rewards is more flexible and benefits the Partners more than when it was rewarding the individual- Cisco needs to do a better job with Partner readiness on our end user demand gen campaigns

b. What key technology solutions & vertical markets should Cisco focus on over next 12 months?- Healthcare/Pharma- Banking/Finance- Manufacturing- Higher Education- Hospitality in select countries- Wireless, Security, IPC & Management as solutions offerings across ALL verticals

Recommendations:- Simple solution architectures- Less high level, broad advertising campaigns some but keep them very targeted- Better campaign targeting- Need better lead qualification, distribution and tracking- Focus seminars make them relevant

---

Commercial/SMB – GREEN TEAM Demand Generation: How do we grow and hunt better together? (50mins)

a. Which competitors should Cisco be most concerned about in the Commercial Market? Pick 2-3----

b. What are these competitors doing from a channel and end user perspective to gain share?----

c. What do our competitors do that we should replicate or learn from?----

d. How can Cisco support you in taking share from these competitors?----

Recommendations:---

Commercial/SMB – GREEN TEAM Competition: How should Cisco respond? (20mins)

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Green

Commercial/SMB End-Customer Requirements: How should Cisco support you better?

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Commercial/SMB Demand Generation: How do we grow and hunt better together?

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Security, Mobility, , IPC, Storage

Trade-in programs, awareness, vertical rebates to horizontal sales?

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Commercial/SMB Competition: How should Cisco respond?

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TACTICAL(Can be addressed within 6 months – before next CCAB)

1. Focus on Vertical and Horizontal campaigns… which ones are TBD, but manufacturing & security look most promising… finance interesting? Fewer, impactful (targeted) programs

2. Defining, communicating, and selling Cisco ‘Value’ proposition… executive and sales levelCisco ownership TBD

4. Bundled solutions for less than <50-100 users

5. Partner protection for hunting new customers.. Programmatically

6. Increased marketing to drive relevance of networking in SMB space… TBD

7. Trade-in program for old telephony products…. Great Exchange??

8. Review current communication strategy… what programs are available?

STRATEGIC(Requires significant changes to policy, strategy &/or GTM)

1. SMB Products… appropriate price/value trade-off for customers

2. IPC - Hand-set pricing & bundles apps

3. Financing options

4.

5.

List top 3-5 most critical things that Cisco should consider based on your discussions.

Commercial/SMB

SolutionsNeed Solutions INCLUDING eco-partners to have a Solution, bundles… e.g. MSFT for CRM

Marketing – -Case studies, ads, -Joint seminars, white papers,- hands on ‘deminars’, -Co Branded Collaterals for partner that Reseller can use to market directly to End Users, -Market research to assist in targeting customers, -Cisco to Drive End user campaigns to drive Demand

-Financing Options – critical for SMB success

--Sales – local sales team (TAM) engagement to help partners drive programs

-Training – Solutions guides,Cisco to help with Training & Roadmap to succeed in the Vertical & ONGOING Cisco Reviews with Reseller to see how doing and how can optimize Cheat sheets

Leads qualification, tracking, distribution…. telesales, E-Leads in development etc.

Channels-Need Solution Guides & Sales Guides-Partner Incentives & EU incentives..-Partner planning and follow-up for the campaign

GTM Initiatives For Verticals or Horizontals… Key Deliverables