Cisco vows to help resellers stay in business

Networking giant unveils a number of channel initiatives designed to guide partners through the difficult times

Keith Goodwin: Cisco is focused on the long term and working together with its partners

Despite admitting the next 12 months are going to be a challenge, networking behemoth Cisco is feeling confident that it will steer its partners through the storm.

The vendor held its Cisco Channel Exchange event in Lisbon earlier this month, which it used as a platform to announce a raft of initiatives to keep its indirect business ticking over in the months ahead.

Keith Goodwin, senior vice president of worldwide channels at Cisco, said: “We are in the middle of an economic storm. Cisco is focused on the long term, and we are going to lead, together with our partners.”

Cisco’s first announcement was a concerted push into the collaboration space with the launch of its Global Resale Agent programme ­ – aimed at helping partners from different geographies to work together to complete cross-border contracts.

According to Cisco, collaboration translates into an estimated $34bn (£22bn) opportunity in 2009.

Secondly, the vendor unveiled a dedicated SME strategy, investing $100m globally into the initiative, which will include the formation of a dedicated small business technology group. Aimed at the sub-100 employee market, the vendor has also formed a small business council.

Finally, Cisco unveiled its installed base lifecycle management initiative. It claimed more than $20bn worth of installed kit is now obsolete and needs to be replaced ­ offering another channel opportunity.

Thierry Drillhon, vice president of European channels at Cisco, said: “Most of our business is done through partners ­ – it is part of our DNA. When you are facing this economic climate, you need to be very close to the channel community.”

Clive Longbottom, service director at analyst firm Quocirca, said Cisco appeared genuine.

“Cisco’s high-touch team has the larger accounts covered, but when you move down the scale it has to find a way of competing cost effectively and that is the channel.”