Changes for Cisco partners indicate changes for buyers

Don't be surprised if your Cisco Systems Inc. equipment vendor starts to bring wireless expertise, application integration techniques, as well as VoIP optimization tips to the table in the future. If Cisco has its way, resellers will be much more sophisticated in the future - but that's not the only change that the network gear maker foresees.Hints from Cisco's Partner Summit 2007 in Las Vegas point to a company steeped in unified communications, service oriented architectures, mashups, and other new technological concepts. In the short term, however, Cisco is simply switching up its channel-partner strategy. Specifically, the Sam Jose CA-based firm is starting a new certification for companies authorized to sell its equipment. The Select Certification program tests and verifies resellers' aptitude for selling to small and mid-sized businesses (SMBs).Its purpose is straightforward: Cisco wants to fare better in the SMB space. Although the company sells plenty of equipment to small companies, the sector ranks as the smallest Cisco participates in. Since the firm doesn't sell to SMBs directly, its best chance for improvement lies with a more sophisticated crop of value-added resellers.The Select Certification program stems from the existing SMB Select marketing system, which helps resellers win sales from SMBs, said Andrew Sage, a director in Cisco's channels management practice.To qualify for Select Certification, resellers must pass technical examinations regarding data networking, wireless and voice networks. The resellers must also pass a sales aptitude test. If they pass, resellers win access to incentive streams, such as discount prices on Cisco equipment.The telecom equipment giant also unveiled the Smart Business Communications System - a voice, video and data platform for SMBs. It combines the Catalyst Express power over Ethernet switch, a wireless access point, an IP-PBX and a voice mail system, all in a chassis smaller than a shoebox. The system serves eight to 16 phones, but it can be expanded with additional, equally small hardware to control numerous external wireless access points, and it integrates with communication application modules from IPcelerate Inc., which created application suites for particular verticals. The medical suite automatically sends emails to patients reminding them of upcoming appointments. The retail suite provides alerts when employees don't sign out on time.The Smart Business Communications System also includes a configuration assistant so users or resellers can set up the product quickly, and a monitoring program lets resellers control and manage the platform remotely. By addressing resellers' needs, the system allows them to derive ongoing revenues from remote network management, which some SMBs would prefer not to do themselves. And it plugs a hole in Cisco's product portfolio. Although the company has offered SMB wares in the past, they weren't the most user-friendly offerings in the world - "user vicious" was how Rick Moran, VP solutions, described them.Resellers are impressed with the new system. "We've had issues and troubles with the UC (unified communications) sales in segment, because there was a gap," said Patrick Naoum, VP, technology and professional services at ESI Information Technologies Inc., a St-Laurent QC reseller of Cisco equipment. The Smart Business Communications System could make it easier for his company to sell to SMBs.Phillip Stone, president of Boardwalk Communications in Victoria BC, said the new product replaces Cisco SMB offerings that were little more than dumbed-down enterprise branch systems that were difficult to configure. The Smart Business Communications System means his company won't always have to call on its top-flight Cisco engineers to install and manage customer equipment. "We're not going to have to jam in those expensive resources."Inasmuch as the new equipment and certification program change the game for Cisco's resellers and SMB customers, they also indicate just where the company is headed. That both the new system and the certification put such heavy emphasis on unified communications - not just data, or data and voice, but data, voice, wireless, video and other applications - suggest that as far as Cisco is concerned, networking is a commingled concern. This could be something of a relief for end-user organizations, many of which are discovering that resellers aren't necessarily adept at all of the aspects of UC. One might have data expertise, but no voice experience. Another might understand voice, but not call centre applications. As UC informs certifications as well as equipment, customers could one day welcome resellers that have a 360-degree comprehension of communication technology.Another observation: Cisco seems keen to leverage its growing interest in certain "Web 2.0" technologies, such as mashups. According to Sage, Cisco is also introducing a new reseller-locator tool that uses Google Inc.'s maps functions to tell visitors to Cisco's website where they can find local resellers. This coincides with Cisco's acquisition of certain Web 2.0 companies. In February the firm bought Five Across Inc., which helps companies create online social networking communities.Cisco's ever-widening product portfolio could tax its reseller partners, who can no longer expect to build profitable businesses by selling all kinds of Cisco gear - there are just too many product lines to manage. Reseller specialization is in the cards, said Keith Goodwin, head of worldwide channels. "We believe partners are going to have to make some choices."

Changes for Cisco partners indicate changes for buyers

News | April 4, 2007

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