Cisco Ups Partner Incentive Funds for FY 2012

Vendor also streamlines deal registration, simplifies technology migration program, offers teaming rewards worldwide.

August 19, 2011

D.H. Kass

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Cisco Systems Inc. said that it is fattening up some of its partner incentive programs for FY 2012, adding new rebates to its Value Incentive Program (VIP) and renovating its teaming, deal registration and technology migration offerings.

Most of the changes center on the VIP program, which on July 31, 2011 began its 18th edition to run through January 28, 2012. Cisco modifies the nine-year old program in six-month intervals.

Richard Moreno, Cisco senior director, Strategy, Planning & Programs, detailed the modifications and additions to channel partners in a blog post earlier this week.

“With your input, we frequently refine our incentive and profitability programs to help you stay at the forefront of the industry and enhance your relevancy to customers,” he said.

Chief among four major changes to the VIP program is replacing the Partner Development Fund (PDF) program, which rewards partners for some deals to small- and medium-sized businesses (SMBs), with a new offering called VIP Express aimed at Registered, Small Business Specialized, Select Certified Partners and Premier Certified Partners not enrolled in VIP.

Moreno said that in the past year Cisco has mapped PDF resources more closely to VIP while still maintaining its focus on certain partners. Changing the program’s name is an appropriate step in that direction, he said.

In addition, Cisco Gold partners participating in the Data Center Architecture track—formerly the Virtualization track—now can claim an extra 2 percent rebate, up from 1 percent, for eligible net bookings.

“The increase is being implemented to recognize the efforts and investments that partners are making to achieve the Data Center Architectural Specialization and reward continued proactive efforts by partners in promoting Cisco’s Data Center Architecture, inclusive of solutions and cloud infrastructure,” Moreno said in his blog.

Cisco also has created a new WebEx track to encourage and broaden the base of channel partners eligible for VIP rewards from selling Cisco WebEx, he said.

Finally, Cisco partners invited to the TelePresence Video ATP program before the end of VIP 17 on June 30, 2011, but failing to meet the conditions in time, may file for the associated rebates for the earlier period and the current VIP 18 if they meet the latter’s qualifications.

Cisco also altered three other incentive platforms, namely the Teaming Incentive Program (TIP), the Opportunity Incentive Program (OIP) and the Technology Migration Program (TMP).

The vendor expanded TIP, which was initially rolled out in the U.S. this past spring, to a worldwide basis. The program grants 5 margin points to partners identified early in the sales process jointly executing with Cisco on sales opportunities.

Cisco said it has streamlined OIP to make it easier and faster for partners to gain approval on deals registered with the vendor, a move designed to “boost adoption and opportunity for higher margins for partners,” Moreno said.

The vendor also said that it has expanded its list of competitors’ products qualifying for trade-in under TMP to make quoting easier, according to Moreno.

For its Cloud Partner Program, Cisco said that it is adding incentives to help partners make money from the cloud opportunity and for those participating in its new Partner Led go-to-market initiative. Details of that reward schedule will be disclosed later in FY 2012, Moreno said.

TAGS: Cisco,channel partner,incentive

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