Once I take a look at Cisco’s historical past, I’m extremely pleased with what we’ve constructed – a world-class {hardware} portfolio that’s been the muse of our shared success. Over the past 5 years, our enterprise has developed considerably. As our latest earnings present, subscription income now represents 56% of Cisco’s complete 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 clients favor to eat know-how and the altering nature of worth creation in our business.
These adjustments mirror Cisco’s ongoing innovation, not simply in enterprise mannequin but in addition in services and products that meet the wants of buyer challenges. In recognition of this, it’s time for our associate applications to proactively align with this evolution, positioning Cisco’s ecosystem to guide relatively than reply to market adjustments.
The Path Ahead
The market is shifting in the direction of outcome-focused know-how consumption. As we’ve labored with you on our broader Cisco 360 Accomplice Program evolution, we’ve been impressed by what number of of you might have already begun this journey – constructing integration practices, growing 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 strategy collectively, making a program that helps not simply the place the enterprise is as we speak, however the place it’s headed tomorrow.
Managing the Buyer Lifecycle Whereas Staying Dedicated to Accomplice Profitability
I need to be crystal clear about one thing – our program and incentive evolutions just isn’t about decreasing what we spend money on our partnerships. What’s altering is how we direct these investments to mirror the whole buyer journey. In actual fact, our dedication stays constant whereas offering much more alternatives and accelerators to extend profitability. It’s about including worth the place clients want it most and rewarding companions who ship throughout the whole lifecycle.
This places us ready to supercharge our buyer attain. As an alternative of rising one buyer at a time, we’ll faucet into fully new markets and segments by way of our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – changing into a vital a part of our clients’ each day operations. Via this developed partnership strategy, we’ll achieve deeper buyer insights that drive innovation – seeing not simply what clients do with our options, however how they match into their full know-how stack.
A Considerate, Phased Strategy
I perceive these adjustments straight influence your corporation operations and profitability. That’s why we’re taking a measured, two-phase strategy that gives stability whereas permitting time to adapt:
Beginning July 27, 2025:
- Via the Worth Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic affords and adoption-based incentives
- The Buyer Evaluation Incentive will supply extra earnings for high-quality assessments
- We’ll regulate the Cisco Providers Accomplice Program payouts and retire the Month-to-month Worth Rebate for Cisco Success Tracks
In February 2026:
- We’ll introduce the Cisco Accomplice Incentive, rewarding you throughout the whole LAER journey
- It will change a number of siloed applications, making it simpler to grasp, predict, and maximize your earnings
- The annuity payout on software program and providers and the Supply Rebate will likely be retired as a part of this transition
To assist you on this journey, we’re offering:
- New reserving dashboards in Accomplice Expertise Platform (PXP) for efficiency visibility
- A profitability estimator instrument (accessible in Could) to mannequin potential earnings
- Complete coaching on maximizing alternatives
- Common, clear communication
I encourage you to contact your Accomplice Account Supervisor to debate how these adjustments complement your particular enterprise technique. My workforce and I are dedicated to making sure this transition creates new alternatives for progress
After we evolve collectively, we win collectively. The power of Cisco has at all times been our associate ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create a good stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable progress for all of us.
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