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24 Aug 2009
Networking giant Cisco has claimed that shifting its SME and commercial business to a geography-based sales model will make life easier for its channel partners.
David Critchley took on the role of UK and Ireland director of commercial and SME six months ago, addressing customers with between 100 and 1,500 staff. Sub-100-seat firms are now covered by a separate small business wing.
He revealed SME and commercial end users and the channel partners that serve them are now managed by Cisco according to geography.
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“It is about having the right partners with the right coverage model,” he said. “That is governed by what end users are looking for, which could be managed services, resale relationships – it is a complex arena.
“That is why we have moved to a territory-based model. Previously, we were inflexible and we have strived to simplify it massively; partners want to avoid unnecessarily competing with each other.”
Critchley claimed SMEs are still prepared to spend on IT if there is demonstrable return on investment and tangible business benefits.
“In October and November we saw a drop off that has not continued and we have since had a period of stability,” he added.
He said the recent extension of Cisco’s VIP rebate structure to cover routing and switching products would be a boon for the vendor’s SME-focused channel. He added that Cisco would work with VARs on joint marketing initiatives, and put together financing packages.
Jon Pickering managing director of Cisco partner Block Solutions, welcomed the territory-based engagement model.
“Historically we have found commercial sector engagement quite difficult,” he said. “However, our belief is that the new model has been mapped onto partner requirements.
“Block always felt that the previous segmented model was unnecessarily restrictive. We have already seen positive signs through several sales opportunities which we are working with Cisco on to convert.”
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