Cisco Evolves Partner ROI Calculation

Cisco‘s channel chief told 2,200 VARs attending the 2012 Cisco Partner Summit in San Diego that the company is expanding how it measures partners’ return on their investment in Cisco to include how it impacts their economic valuation.

Cisco's Edison Peres at the 2012 Cisco Partner Summit“Our goal in addition to supporting your profitability … is we want to maximize your business value and optimize your ‘return on Cisco,” said Edison Peres, senior vice president of worldwide channels for Cisco.

This new formula  marries what partners value with what investors value. He explained what partners value in their suppliers is technology innovation, practice enablement, commitment to partner profitability and a partner-centric sales strategy. What investors value (and what impacts partner valuations) are operating profit, growth potential, sustainability and business risk.

“We believe that we can proactively influence [these four factors],” Peres said. “If we are able to do that, not only does it create loyalty, it raises the stakes in our relationships to create more and to innovate together.”

Among the initiatives to support this new effort, Cisco announced new training: Enabling Architecture Sales Excellence or EASE. Cisco architecture solutions include Borderless Networks, Data Center/Virtualization, Collaboration and Service Provider.

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