Follow the Cisco trail

Paul Briggs checked out the mood in Las Vegas last week at Cisco's annual partner summit.

Although many things have changed in the IT industry over the past few years, including supposedly channel-friendly vendors looking elsewhere for revenue growth, one thing has remained consistent: Cisco's commitment to its channel partners.

Last week the networking giant held its annual partner summit in Las Vegas. According to analyst Global Touch, Cisco derives about 95 per cent of its worldwide revenue through VARs, which it considers to be its "competitive advantage".

Although talk of channel consolidation was in the air, the vendor is unmoved.

In a recent interview with CRN's US colleagues, Cisco supremo John Chambers said that he is closer to channel issues than ever before.

It is always interesting to hear what advice Chambers has to offer and what new opportunities Cisco urges its resellers to take advantage of.

Chambers rarely gambles and has seldom been known to talk about where the firm looks likely to play next until the ink is dry.

Much of the buzz at this year's summit has centred on Cisco's recent acquisition of Linksys, its 81st purchase, and how it will fit into the vendor's overall strategy.

IP telephony, wireless and security centred in the SME arena were the other crucial areas of interest for Cisco partners, as Chambers continues to insist that VARs must specialise.

Chambers's predictions always make people sit up. Not because they are delivered with the zeal of a southern Baptist pastor, but because his ideas tend to come to fruition with unnerving accuracy.

He predicted that VARs should get into services to differentiate from those just competing on price, and he foresaw that they should be adding voice to secure the "margin blocks" of the future. Both predictions have been proved right.