“Initially we think we’ll be slightly behind… but we understand why”
Rob Quickenden, CTO, Cisilion
Are you any closer to determining your 360 profitability now you’ve been handed the estimator?
There was a preview version of it before some partners had access to. We’re working through it. For us, long term we think it’ll be net neutral or maybe slightly better off.
Initially, we think we’ll be slightly behind where we would have been, but we understand where and why. To get some of the higher rebates, we know we need to sell more premium SKUs, which we traditionally don’t always sell.
The fact that Microsoft did this three or four years ago with their change of partner programme – and the fact it’s the same team involved; the same person, essentially – is really good for us.
We’re really good at the Microsoft model and driving post sale, and this is very much what the Cisco model is [now] about. Traditionally, you could sell to the customer and then leave them, and get maximum rebate. Now it’s much more about, ‘own the customer, drive the lifecycle, be involved in adoption and change, and go back and upsell’. And, actually, that’s something we all should be doing as Cisco partners.
I totally understand why they’re doing it. I would do it. So we are embracing it. I think it’s going to cause a bit of pain, but we all feel it’s the right thing and are generally fully behind it.
And it’s a common model. Cisco are more cloud than they are hardware these days, and it’s the model they need if they’re going to drive their market share.
Is there anything you’re unhappy with about 360?
I think the premium SKU aspect is going to impact us. Some of those things aren’t about what you sell but what customers want to buy. We don’t see ourselves as sellers but as enablers, so our role within our customer base is to take the options to them, to challenge and to ask. If customers don’t want to buy a premium SKU, we will still drive adoption, change and refresh – but obviously you’ll be penalised slightly for not selling those things.
But I also think the programme will evolve. I expect Cisco to refine and tweak the programme.
When some other vendors drive changes to their programmes, they go, ‘as of this date you’re now doing this’. Cisco has been really open with partners. Other vendors need to learn from the way they consult and drive change with partners. I think they do it better than any other partner I’ve ever worked with.
“I’m hoping for a net-zero impact” – see what Insight’s Gill Holloway had to say about 360 on the following page…
