Once I have a look at Cisco’s historical past, I’m extremely happy with what we’ve constructed – a world-class {hardware} portfolio that’s been the inspiration of our shared success. During the last 5 years, our enterprise has developed considerably. As our latest earnings present, subscription income now represents 56% of Cisco’s complete income. Our enterprise mannequin has reworked from primarily transactional to more and more subscription-based, with software program income rising 33% and software program subscription income up 39%. This elementary shift displays how our prospects desire to eat know-how and the altering nature of worth creation in our business.
These adjustments replicate Cisco’s ongoing innovation, not simply in enterprise mannequin but in addition in services that meet the wants of buyer challenges. In recognition of this, it’s time for our associate applications to proactively align with this evolution, positioning Cisco’s ecosystem to guide quite than reply to market adjustments.
The Path Ahead
The market is shifting in the direction of outcome-focused know-how consumption. As we’ve labored with you on our broader Cisco 360 Associate Program evolution, we’ve been impressed by what number of of you could have already begun this journey – constructing integration practices, creating software program capabilities, and creating providers that ship distinctive buyer experiences.
Our alternative now at Cisco is to correctly and adequately reward you for driving buyer outcomes. We now have the chance to evolve our partnership strategy collectively, making a program that helps not simply the place the enterprise is as we speak, however the place it’s headed tomorrow.
Managing the Buyer Lifecycle Whereas Staying Dedicated to Associate Profitability
I wish to be crystal clear about one thing – our program and incentive evolutions will not be about lowering what we spend money on our partnerships. What’s altering is how we direct these investments to replicate the whole buyer journey. In actual fact, our dedication stays constant whereas offering much more alternatives and accelerators to extend profitability. It’s about including worth the place prospects want it most and rewarding companions who ship throughout the complete lifecycle.
This places us ready to supercharge our buyer attain. As a substitute of rising one buyer at a time, we’ll faucet into completely new markets and segments via our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – turning into a vital a part of our prospects’ each day operations. By way of this developed partnership strategy, we’ll achieve deeper buyer insights that drive innovation – seeing not simply what prospects do with our options, however how they match into their full know-how stack.
A Considerate, Phased Strategy
I perceive these adjustments instantly influence your enterprise operations and profitability. That’s why we’re taking a measured, two-phase strategy that gives stability whereas permitting time to adapt:
Beginning July 27, 2025:
- By way of the Worth Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic provides and adoption-based incentives
- The Buyer Evaluation Incentive will provide extra earnings for high-quality assessments
- We’ll alter the Cisco Providers Associate Program payouts and retire the Month-to-month Worth Rebate for Cisco Success Tracks
In February 2026:
- We’ll introduce the Cisco Associate Incentive, rewarding you throughout the complete LAER journey
- This can exchange a number of siloed applications, making it simpler to grasp, predict, and maximize your earnings
- The annuity payout on software program and providers and the Supply Rebate shall be retired as a part of this transition
To assist you on this journey, we’re offering:
- New reserving dashboards in Associate Expertise Platform (PXP) for efficiency visibility
- A profitability estimator instrument (out there in Could) to mannequin potential earnings
- Complete coaching on maximizing alternatives
- Common, clear communication
I encourage you to contact your Associate Account Supervisor to debate how these adjustments complement your particular enterprise technique. My staff and I are dedicated to making sure this transition creates new alternatives for progress
After we evolve collectively, we win collectively. The power of Cisco has at all times been our associate ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create a fair stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable progress for all of us.
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