Cisco Blogs

Cisco and Our Partners: Building a More Valuable Relationship

- May 21, 2017 - 0 Comments

At Cisco, we know that our relationship with our partners is vital—80 percent of our revenue flows through our partners, and without your commitment to us, we would not enjoy the successes that we have. But we also know that we have to earn your business and your loyalty every day. You tell us that you value our relationship and many of the things Cisco brings to the table, like technology innovation, practice enablement, profitability programs and our unique partner-centric sales and services go-to-market model.  I consider this our Cisco Partnering Value Proposition and we are committed to these core tenants.

As I shared at Partner Summit in San Diego, being “In it to Win it” means taking our  relationship to a new level, and that means helping you  maximize your business value and optimize your Return on Cisco. So how do we do that?

Watch this video clip of my General Session presentation at Partner Summit to learn more about what I mean when I talk about your Return on Cisco.

As we see it, a partner’s Return on Cisco is comprised  of the Cisco Partnering Value Proposition I mentioned, and a new concept we’re calling an Investor’s View of Partner Valuation. 

Defining the Investor’s View of Partner Valuation

Why do some partners get two times their EBITDA value, and others get eight times their EBITDA value? Based on the conversations we’ve had with partners and investors, we’ve identified four key areas that are most influenced by our collaborative relationship:

Operating profit: This is not just about gross margins, but the total operating profit influenced by cost of sale and  operating expenses. We continue to look for ways to simplify and make it easier for you to business with Cisco.

Growth potential: Cisco’s commitment to technology innovation helps drive future growth potential and creates new opportunities for partners.

Sustainability: Your professional services practice is key to sustainability. You can also grow recurring revenue through managed services and new cloud services.

Business Risk: Investors look  for manageable business risk,  including the strength, integrity and reliability of your partners.

With our commitment in these four areas, we believe we can proactively influence this Investor’s View of Partner Valuation, and bring more value to partners and to our relationship.

So what’s our ultimate goal? We’re committed to maintaining a focus on partner profitability and helping you build a strong, highly-valued business. Our goal is to help you maximize business value and optimize your Return on Cisco.

Partnering isn’t something we just do, it’s what defines us, it’s an integral part of our DNA. Return on Cisco is all about you, our partners, and helping you to grow and thrive. We want to make you proud to choose Cisco as your partner.


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