Cisco unveils blueprint to tackle downturn
Cisco head of global channels Keith Goodwin has today announced new partner programmes and an extension to the terms of its reseller financing deals.
Speaking at Cisco's annual Partner Summit in Boston, which he described as "possibly the most important ever" given the economy, the big cheese unveiled a initiatives aimed at leading the channel through the current economic downturn.
Citing figures that show just 10% of Cisco partners are actively using its financing terms Goodwin said that partners had repeatedly asked him to help them reduce the cost of doing business.
"Back in October, we increased our partner credit by $2bn, and at the same time we launched initiatives around Cisco Capital to focus on channel financing.
"This was our extended terms programme. Those of you who are participating, many of you are on 60 day terms, but effective June 1 we're taking you to 90 day terms," added Goodwin.
Cisco will also be launching a new deal protection scheme during 2010. The initiative, dubbed Channel Bookings Neutrality, will protect Cisco partners who have fallen victim to deals being shifted off to other partners by the vendor's own account managers at quarter end.
"That means a Cisco account manager will now get booking credit at the same time whether it comes from a partner buying through distribution or a direct partner," said Goodwin.
One reseller complained that second tier Silver partners were often disadvantaged by this practise, as he reckoned the Cisco sales guys often got paid more quickly on deals that were taken direct to Gold partners rather than through distribution.