Time is valuable. And it never feels like we have enough of it. Learn how to save time, make more money, reach more customers, and stay connected. Seem impossible? It’s not!
Service contracts are a time and money succubus. But they don’t have to be.
Tracking thousands of services contracts, renewing those contracts, and ensuring price and service levels are accurate, all while keeping customers happy can drain your day and your wallet.
Find out how TechData spent less time and money converting more service renewals and helped their resellers do the same. Kelly Crothers, Director, shares the story in this blog.
Three ways to stand out and stay connected.
Our customers are smart. They’re savvy. They have access to all the same research, data, and trends that we have. By the time a customer reaches out they already know what the problem is and how to solve it.
There is more pressure – and more opportunity – for us to help customers make good business decisions. Decisions that lead to more money, better outcomes, and happier customers. Karin Surber, Sales Manager, shares three strategies to stand out and stay connected in this blog.
Why security, software, and the install base matter so much to our distributors.
Three of the topics we’ve talked a lot about this quarter are security, software, and the install base. Why? All three can lead to enormous success or complete breakdown. Our distributors play a big role in helping partners and customers make sense of the market and opportunity for each of these.
Julie Hens, Vice President, talks about how we’re helping our distributors in this blog.
What’s next?
The partner weekly rewind and fast forward is designed to give you a snapshot of what you missed and what’s to come. Tell us what you think and what you want to hear about in the comments. And come back next week for more!
“Now. Right now.” That’s the motto of modern technology. As contemporary consumers, we expect access to everything regardless of location or time. If we are sitting in traffic, too many of us automatically reach for our phones to check our messages and email. (And risk an expensive traffic ticket to do it.) When we can’t sleep at night, we review our calendars for the upcoming workday. Being connected has become a priority. For some of us, being unconnected is a nightmare.
Businesses understand that not only do customers expect flawless connectivity, so do employees. Unified communications has taken hold, setting expectations for integrated services from telephony to messaging and mobility.
Where Are SMBs in UC Deployment? Recently, Cisco commissioned Forrester Consulting to explore the deployment of UC technologies among small and medium-sized businesses (SMBs). In its survey of 606 IT and business decision makers in SMBs, Forrester found that:
Only 19% had fully implemented UC technologies
78% were currently expanding and upgrading, or planning to, in the next 12 months
2% were decreasing or removing UC (I hope that works out for them…)
In deploying UC, these organizations have responded to a cultural shift of the new generation. People are seeking a better work-life balance, so they want their tools to be easier to use – anywhere. Proof: 63% of respondents identify as people-centric. They consider employees as their strongest assets. And they invest in technologies that promote flexible, remote working environments. These initiatives have delivered additional benefits: They can improve operational efficiency, drive revenue growth, and help to address rising customer expectations.
SMBs Rise Above As with any changes, especially technological ones, there will be obstacles. One of the biggest challenges facing SMBs is the lack of employee knowledge and access to key features. The complexity, and consequently the challenges, increase as companies acquire UC technology from different vendors. SMBs are now on the hunt for UC tools that are simple, secure, and complete. They’re looking for the whole UC package in one “box.”
Another challenge is the deployment model itself. When implementing UC technology, SMBs can take one of three routes: on premises, hybrid configuration, or cloud. Each comes with its own set of advantages and disadvantages, depending on the business situation. For some, on-premises or hybrid deployments cause struggles with complex configurations. For others, regulatory and compliance issues complicate cloud deployments.
On the whole, respondents report that their UC implementations prove successful and meet expectations. In fact, about 20% report exceeding expectations. However, no system is perfect. Respondents have noted that the capabilities have fallen somewhat short of delighting their customers and improving their experiences.
Regardless, UC technologies are proving to be a step in the right direction and will certainly continue to improve over time.
Keys to Success: Keep Moving The most important and fundamental reasons for companies to adopt UC technology are the potential benefits. Over half of the SMBs (57%) cite that their top driver moving to UC involved reducing costs, followed closely by the 45% that wanted to improve information security. Also on the list were improve collaboration with clients and business partners (42%) and collaboration across office locations (42%).
These businesses are achieving success with UC, but success is only sustainable if they continue to integrate and expand. New technology is only “new” for a short period of time. It’s important to upgrade and evolve as the technology changes and improves. There will continue to be a need for diversity in UC deployment options, but the move to the cloud is becoming increasingly popular with 33% of SMBs already positioned in the cloud.
As valuable and innovative as UC technology is, it is only useful if people use it. Make sure you provide at least basic training as you bring in new technology so that employees can take advantage of it. It is also important to be sure you really understand your business and technology needs so you can evaluate and leverage vendors to get what you need. Risks is a significant part of running a business, so SMBs shouldn’t fear adopting this new technology, nor exploring and branching out within it. This is a tall order, but it will benefit them in the long run.
This week the International Trade Commission (ITC) released the public version of its ‘944 ruling, which shows intentionality of Arista’s infringement, confirms that Cisco patents are valid, and rebuffs arguments against a ban. The document details the full rationale for the ITC’s finding of intentional infringement by Arista of three Cisco patents, and its remedy of an exclusion order, and a cease and desist order covering all Arista switches. This includes blocking the importation of components or assembly of any products using imported components.
It’s important to note that Arista made no challenge at the Patent and Trademark Office to the validity of the two PVLAN patents that were found infringed. For the third infringed patent, covering Cisco’s core SysDB architecture where Arista’s documentation follows “slavishly” the Cisco patent language, Arista’s attempt to initiate a review of validity was rebuffed for six of the claims the ITC found infringed. For summary details about the Cisco patents and Arista’s infringing use, please see our February blog, Protecting Innovation: The Beginning of the End.
Key takeaways from this week’s public ruling describe Arista’s unlawful actions and make clear that attempts to evade the agency’s authority will not be tolerated.
Willful and Intentional Infringement:
The ITC concluded that, when it infringed Cisco patents (page 18, paragraph 4) related to Sysdb and Private VLAN, Arista did so willfully and intentionally.
The Commission confirmed that Arista had knowledge of the asserted patents (page 20, paragraph 3) and Arista was found to have “actively induced third parties to infringe” (page 23, paragraph 3).
Public Interest:
The public interest supports the chosen remedy because there are numerous alternative networking technologies available to customers, demand can be met, and there is no harm to competitive conditions if Arista’s infringing products are excluded (page 58, paragraph 2).
Only once in 30 years has the President of the United States stopped the ITC from executing an exclusion order due to significant impact on the public interest. Those circumstances do not apply here, where many competitors are active in the market and where none of the patents cover either an industry standard. The Presidential Review period ends on August 22, 2016.
Changes to Importation Processes:
Because the ITC also found that components are covered, the order cannot be evaded by importing components and assembling the infringing product in the U.S. (page 6, paragraph 4; page 7, paragraph 1).
The ITC still has jurisdiction, if ANY of the parts or components are imported. This ruling is significant – even in light of Arista’s recent announcements about the intent to relocate contract manufacturing.
Once the Presidential Review Period concludes, the service and warranty for products sold prior to the finding of infringement may be honored. However, the same is not true for any device sold AFTER the ITC ruling. This means the risk is shifted to Arista’s customers, should the company attempt to evade the remedy through new assembly practices.
During the process to determine what should be shared transparently with the public, Cisco did not ask for any information to be withheld from the public, and called on Arista to do the same. All redactions included in the public document were therefore made by Arista.
The ITC ruling has direct implications for customers, partners, investors, and suppliers. We believe those making business and investment decisions deserve to know all the facts. Those who want to be fully informed should ask Arista for a complete version of the final ruling.
Limited transparency and questionable tactics do not provide confidence that they intend to do the right thing, the thing that Cisco has requested from the day we filed this case: stop using stolen IP.
It’s been a couple weeks since Cisco Live wrapped up. With roughly 25,000 attendees each year, it is a gold mine for new content, hands-on learning, IoT discussions and…well, fun.
While I spent a fair amount of hours perusing the show flow, ogling the astonishing 250 booth displays, I also spent a lot of time at the Industrial IP Advantage booth. In the booth, we were showing off the new eLearning courses. Throughout my four days in Las Vegas, I was able to pick up a thing or two about the event.
Here are my top moments from Cisco Live:
Training Courses: Many delegates were attracted to to the robotic ‘Pachinko-type’ machine we were showing in the booth, which was demonstrating live use of Industrial Ethernet. They also wanted to learn more about our eLearning training courses. In fact, Course 3: Industrial Zone, just launched. The course teaches IT and OT to collaboratively architect a converged multi-service plant-wide network and to operate as domain experts in a multi-function team.
Addressing the skills gap: As we discussed the eLearning courses with attendees, we also learned that many attendees were excited about Cisco, Panduit, and Rockwell Automation coming together to address the skills gap – something many manufacturers are currently facing. They were elated to know that Industrial IP Advantage is developing resources – like the eLearning courses – to help navigate industry challenges, such as the retiring workforce and IT and OT convergence. Many attendees echoed our perspectives and said they were getting serious about enabling change in the industry and were adding even more training courses.
Ethernet/IP is here to stay: While some of the legacy Ethernets are still around, attendees we spoke to agreed that they are seeing a big increase in the adoption of Ethernet/IP. Industrial Ethernet is now being adopted by more companies in all parts of their industrial operations and enables real-time control and information in discrete, continuous process, batch, safety, drive, motion and high-availability applications.
Networking opportunities: The folks staffing the Industrial IP Advantage booth at Cisco Live met with companies and organizations from both the private and public sectors. Utilities, aviation, discrete and other manufacturing organizations appreciated the need for the training we were providing. In fact, some even signed up on the spot, while others registered after the event.
While we managed to talk a few booth attendees into snapping a ‘selfie’ for our social media contest, a majority of chatter was about the convergence of operations and shifting roles for IT and OT, requiring the need for new, advanced skills. By pursuing eLearning opportunities, employers and their employees can help bridge the manufacturing skills gap one training course at a time.
View our Digital Manufacturing website for more details, and to receive future Manufacturing blogs straight to your inbox:
We as a human race have so much to be proud of and excited for – look at us, we’ve learned to fly, gone to the moon, overcome horrific tragedy and invented a little something called the Internet, which connects us all regardless of where we physically reside. It’s quite a time to be alive, never better I would say. And just think, we’re on the cusp of normalizing driverless cars, artificial intelligence and many more amazing things to come.
Companies lose market opportunities daily because of a missing insight or an overlooked fact—simply because it’s not easily within plain view. Sales can’t connect with latest marketing programs. Marketing can’t connect with sales data. Shipping can’t connect with product inventory information. Manufacturing can’t connect with sourcing data. And, so on.
Despite enterprises typically having databases that contain answers to queries like these, critical operating information is often siloed in ways that prevent all stakeholders from obtaining knowledge vital to their tasks, and giving them the big picture of how the business is performing.
At the end of 4th grade, 10-year-old Peyton Walton learned that she and her family were moving 600 miles away. She also learned that she was diagnosed with cancer.
Peyton’s mother Lynn knew how important school was to Peyton. Lynn knew that if Peyton could continue to stay in school, it would have a tremendous impact on her mental outlook.
So, as Peyton began her cancer treatment, Lynn began a focused effort to help her daughter acquire the remote access to the classroom she needed. She came across many roadblocks, some of which she was able to overcome, and some that were insurmountable.
According to Lynn, “It was important for me to connect her [Peyton] to children and people that knew her before cancer. Because then she was just Peyton.”
After tackling many roadblocks with her healthcare providers, local legislation, and school district, Peyton and Lynn were connected with Cisco, and were given video collaboration units to help Peyton learn virtually, from her home or from the hospital. The collaboration technology that helped her stay connected academically also helped her remain engaged with her classmates and teachers, and feel included in her social network.
Peyton connecting with her fellow classmates.
“When we got the equipment, I saw how well it worked and how clear it was,” said Peyton’s teacher, Mrs. Krumm. “She’s sitting in the room almost with you…it was very exciting.”
Lynn clearly saw the effect the virtual learning experience had on Peyton, “It was palpable. I could feel the immense impact this technology had on her mental outlook.”
Today, Peyton is cancer free, and her story opens up a world of possibilities for pediatric patients facing not only severe illnesses but also interruption of their education. Her story is also an inspiration for the countless ways we can leverage technology to drive inclusion and collaboration for people in other situations.
To help bridge the gap between the current standard of care and access to schooling, Cisco hosted Peyton, Lynn, and leaders in education and healthcare for a roundtable discussion during Cisco Live US.
From left to right: Shari Slate, Colleen Krumm (Peyton’s Teacher), Lynn Schaeber (Peyton’s Mother), Peyton Walton, Rowan Trollope, Francine Katsoudas, Stephen Krause
During the event, participants explored the ideal future scenario in which we can regularly connect patients with an interactive educational experience and eliminate isolation through collaboration technology.
The day began with an inspirational talk from SVP and Chief People Officer, Francine Katsoudas. She said of the roundtable discussion, “This conversation is about the art of what’s possible.”
Following Fran’s talk, we were introduced to Lynn and Peyton. Lynn stressed not only the importance of learning in the classroom, but also learning from engagement with other students.
She said, “So much of what happens at school isn’t about facts – it’s about social engagement and self-reflection that is not taught. When you remove a child from those experiences, the most detrimental thing to prognosis is isolation. The main purpose of this tool was not about learning per say, it was about Peyton learning about herself.”
Rowan Trollope speaks with Peyton, Lynn and Colleen Krumm
General Manager of Cisco’s Internet of Things (IoT) and Applications, Rowan Trollope, joined the group next, stressing the importance of collaboration technology in connecting people and things.
“This experience [collaboration] will happen in the future. Everyone will have access to it and more,” said Rowan. “It’s inevitable that this will happen – it’s our job to make it happen.”
After the inspiring speaking sessions, the floor was opened up to the attendees to discuss how to achieve a future scenario in which all patients are given educational access. Conversations were insightful and action-focused, as you can see by this illustration of the roundtable discussion.
Illustrated conversations from the roundtable.
One key takeaway from the day: With the right technology and the right leaders, we can provide quality educational experiences to everyone, regardless of location, age or physical state.
This commitment to connectivity bridges all parties – parents, students, teachers, hospitals, community members and legislators for the common good of expanding educational opportunities for all.
Most of us think of the word “disruption” as being negative. For instance, we get a late night phone call and our sleep is disrupted. Or we’re driving home from work and hit a traffic jam and our commute is disrupted. Whenever we’re comfortable and have a common routine that gets interrupted, it makes us a little irritated. That is the power that disruption has over us.
But in business, the power of disruption is even greater. If we continue to do the same thing, we might get left behind, and quickly. The world is continually evolving and technology is a catalyst for much of that change – think of Uber and the way it disrupted the public transportation business. Or Netflix and the way it changed the way we watch movies. The businesses that these two companies impacted are forever changed, if they even exist at all anymore. Can you hear the familiar sound of the bugle playing in the background for Blockbuster video?
Although disruption is a constant in our lives and is a necessary part of the world, it isn’t easy to face. And the more we resist, the more difficult it will be to adjust to the impending change in the long run. Often, we don’t realize the impact on us or the business until a disrupting force has hit critical mass. By then, it’s simply too late to make the necessary changes needed to adapt and survive.
Digitization is the latest significant disruption facing businesses around the world. The move to become fully digitized in response to the explosion of smart devices, the need for instantaneous information and hyper-connectivity is a source of increasing pressure. For some companies, that pressure is immediate. For others, they have a little more time before their business must adapt. But regardless of where a company exists on the digitization continuum, they must eventually evolve their business and adopt technology as an integral strategy for success.
Cisco partners are in a unique position to council companies through this challenging transition. The network is the backbone that enables full digitization and the security of that network and all connected applications and databases is paramount. Cisco is the only vendor on the market who can address ALL critical elements of business infrastructure through a Digital Ready Network. And those partners who understand both the network AND their customer’s business will be in the best position to add tremendous value to prospective and existing customers.
So what can Cisco partners do to ensure they are in the best position capitalize on the digitization boom? Here are a few tips to steer you in the right direction:
Focus on the customer’s business: If you don’t have the vertical expertise you need, partner with another reseller or software vendor who can bring that business expertise to the table. Cisco Partners can leverage the Cisco Marketplace to locate and identify business applications and solutions that solve your customers’ issues. You need to understand your customers’ pain points to have the credibility required to close the deal. If you don’t have that business knowledge, partner with someone who does.
Create a sense of urgency: As mentioned above, all companies will eventually need to make the digitization leap if they haven’t already. Helping customers understand the importance of staying IN FRONT of market trends is one of the best ways to win the deal. After all, those that hesitate may find that it’s too late.
Stay on top of market trends and share that knowledge with your customers: Being a “consultant” and sharing insights on changes in business trends is a key way to differentiate yourself and your business. Offering solutions that help customers keep up with these trends will get their attention. Attending networking events, reading trade magazines and staying up on current events that impact your customers, will allow you to be that critical advisor. Use this information as a “reason to call” to continue to stay relevant with prospects and install customers.
Regardless of the type of business, your customers will need advice on how to move into the digitization era. Helping them understand how they can leverage technology to transform is powerful way for Cisco partners to add value. The sooner they start down the digitization journey, the better off they will be.
Co-authored with Vickie Wong, Assistant Corporate Controller, Cisco
Every so often, financial standards boards revise policies that affect all sectors and companies around the world to varying degrees. Such is the case with the recently issued accounting rules that require companies to alter financial reporting for lease agreements.
This update comes at an interesting time as we are in the midst of a new technological revolution. Companies of all types are beginning to embrace the age of digitization and transform the very framework in which they operate. The speed of technology change requires companies to analyze the way in which they purchase and finance their technology to manage their risks more effectively.
Financial reporting regulations can have a major impact on an organization’s decision-making process as they make their technology investments and executives become more informed about the reporting issues.
What you need to know
After some debate, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) agree that virtually all equipment leases need to appear on the balance sheet. While the two organizations do not align completely, both sets of new guidelines apply to all companies.
Under the new FASB guidelines, applicable for companies reporting under US accounting principles (US GAAP), equipment lease transactions historically categorized as either Capital or Operating Leases for lessees will be defined as Finance and Operating Leases. The IASB guidelines that many non-US companies follow no longer make any distinction between these two types of leases.
Operating Leases are at the heart of this project and the focal point of the new accounting guidelines as lessees are now required to reflect both the asset and liability associated with the value of the underlying equipment. Remember that overall, leases may still be favorable to loans or outright purchase for acquiring equipment. Customers with Operating Leases will find that the capitalized asset cost and associated liability may be lower than a comparable purchased asset and associated loan or cash purchase. In other words, although Operating Leases will add assets and liabilities to the balance sheet, the asset amounts (Right of Use amount) will likely be lower than the cost of an outright purchase.
“Leasing continues to offer many benefits for customers, including total solution financing, flexible terms and structures, cash flow and tax benefits and the management of obsolete or unused equipment,” says Kristine A. Snow, President of Cisco Capital.
What these changes mean for customers and partners
“Lessees or equipment purchasers might experience balance sheet recognition and ongoing administrative changes, but, the economic benefits [of leasing] remain the same,” said Vickie Wong, Assistant Corporate Controller of Cisco.
The lessee will recognize the “value” of the equipment as a Right of Use asset on the balance sheet and book an associated liability for the minimum lease payments. Right of Use being defined as the right to use equipment during the lease term. The Operating Lease liability will not be classified as debt but rather be an “other” liability. Finally, under US GAAP there should not be an impact on the income statement – allowing customers to focus on the structure, terms and value of the lease. For companies following international GAAP, Operating Lease expenses will no longer be recognized evenly over the lease term. This treatment may have an impact on the income statement. Under the new IASB rules, lease costs will be front-loaded.
Overall, while the administrative process for a lessee may change, requiring more involvement of their finance department, the benefits of leasing remain.
What you can do
There are options to help companies through this process. For example, captive finance organizations can help you explore how to optimize such changes by providing an immediate source of low-cost capital, flexible terms and structures along with payment plans aligned to cash flow needs. In addition, captive finance organizations can share risk with customers, providing total cost of ownership savings when deciding between leasing or buying.
To find out more about how the FASB changes might affect your business, please consider initiating conversations with the following parties:
Bankers – Discuss the changes and possible impact on credit lines and covenants.
Accountants – Seek guidance about their interpretations of the new guidelines.
Technology partners/providers – Review purchasing and leasing options for your IT needs.
Each case is different but one thing is certain – technology is driving industries forward and a strong IT investment strategy is key to maintaining a competitive advantage.
*Cisco and Cisco Capital do not provide tax or accounting advice to customers. Tax and accounting treatment is the sole responsibility of the customer.
