After I take 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 muse of our shared success. Over the past 5 years, our enterprise has advanced considerably. As our current earnings present, subscription income now represents 56% of Cisco’s complete income. Our enterprise mannequin has remodeled from primarily transactional to more and more subscription-based, with software program income rising 33% and software program subscription income up 39%. This basic shift displays how our clients favor to devour expertise and the altering nature of worth creation in our business.
These modifications mirror Cisco’s ongoing innovation, not simply in enterprise mannequin but additionally 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 somewhat than reply to market modifications.
The Path Ahead
The market is shifting in the direction of outcome-focused expertise 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’ve got already begun this journey – constructing integration practices, creating software program capabilities, and creating companies 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 need to be crystal clear about one thing – our program and incentive evolutions will not be about decreasing what we put money into our partnerships. What’s altering is how we direct these investments to mirror the entire buyer journey. In truth, our dedication stays constant whereas offering much more alternatives and accelerators to extend profitability. It’s about including worth the place clients want it most and rewarding companions who ship throughout your complete lifecycle.
This places us able to supercharge our buyer attain. As a substitute of rising one buyer at a time, we’ll faucet into totally new markets and segments by our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – changing into a vital a part of our clients’ each day operations. Via this advanced partnership strategy, we’ll achieve deeper buyer insights that drive innovation – seeing not simply what clients do with our options, however how they match into their full expertise stack.
A Considerate, Phased Strategy
I perceive these modifications immediately affect 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:
- Via the Worth Incentive Program and Lifecycle Incentives, you’ll have elevated alternatives to earn extra on strategic gives and adoption-based incentives
- The Buyer Evaluation Incentive will provide extra earnings for high-quality assessments
- We’ll regulate 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 your complete LAER journey
- This can exchange a number of siloed applications, making it simpler to know, predict, and maximize your earnings
- The annuity payout on software program and companies and the Supply Rebate will likely 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 modifications complement your particular enterprise technique. My crew and I are dedicated to making sure this transition creates new alternatives for development
Once 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 good stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable development for all of us.
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