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Listening to Partners: Growing Demand for New Consumption Models

- November 1, 2012 - 1 Comment

Listening to our partners is one of the most important aspects of my role at Cisco.  The feedback we get from our partners helps to shape our strategy and our programs.

Every year we bring together a select group of partners as part of a series of Cisco Partner Executive Exchange (CPEE) events around the world.  In the last 2 months, we’ve met with Latin America partners, APJC partners, and US and Canada partners.  Last week we met with our Americas service provider partners, and next month we’ll meet with our partners in EMEAR.

During these events, partners gave us feedback on our go-to-market strategies; our programs, tools and incentives; and how to optimize our sales teaming with them. While each region is unique and partners have their own unique challenges, as we talk to partners around the world, it’s clear there are some common themes.

One of the common market dynamics we see is the growing customer demand for new consumption models like cloud and managed services. The implications to the partners include:

  • Business model transformation to support managed/cloud services
  • Driving recurring revenues vs. project based up-front payment
  • Focus on business outcomes vs. technology
  • Sources of capital to support business model evolution

But what is really happening out there? Are partners seeing the demand, or is it still just a conversation? So we tested that notion with the partners in the room at each event and it’s clear that cloud is becoming more than just a conversation. Partners told us that the pipeline is building and deals are happening, but they tend to be small. Customers are moving to the cloud, but in small steps.

What do you see in your business–how fast are you seeing demand for “as a service” consumption models grow? Let us know if what you’re seeing falls into one of these categories:

A) It’s only a conversation; B) The pipeline is developing; C) Deals are happening

I encourage you to post a comment on this blog and let us know your thoughts and what’s happening in your business and geography.


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  1. Edison, Check out my recent blog "The Tech Industry Channel Is Cloud-Confused". Also, I think you are doing a great job helping your partners. Peter O'Neill, VP & Principal Analyst, Forrester Research