After I have a look at Cisco’s historical past, I’m extremely pleased with what we’ve constructed – a world-class {hardware} portfolio that’s been the inspiration of our shared success. Over the past 5 years, our enterprise has developed 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 want to eat know-how and the altering nature of worth creation in our business.
These adjustments 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 companion packages to proactively align with this evolution, positioning Cisco’s ecosystem to steer relatively than reply to market adjustments.
The Path Ahead
The market is shifting in 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 might 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 method collectively, making a program that helps not simply the place the enterprise is immediately, 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 put money into our partnerships. What’s altering is how we direct these investments to mirror the whole buyer journey. The truth is, 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 entire lifecycle.
This places us able to supercharge our buyer attain. As a substitute of rising one buyer at a time, we’ll faucet into solely new markets and segments by our complementary strengths. By integrating our options into broader buyer journeys, we’ll create stickier relationships – turning into a vital a part of our clients’ day by day operations. Via this developed partnership method, we’ll acquire deeper buyer insights that drive innovation – seeing not simply what clients do with our options, however how they match into their full know-how stack.
A Considerate, Phased Strategy
I perceive these adjustments straight affect what you are promoting operations and profitability. That’s why we’re taking a measured, two-phase method 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 presents and adoption-based incentives
- The Buyer Evaluation Incentive will supply 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 entire LAER journey
- This may change a number of siloed packages, making it simpler to grasp, predict, and maximize your earnings
- The annuity payout on software program and providers and the Supply Rebate can 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 device (accessible in Might) 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 workforce 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 companion ecosystem. I’m assured that by embracing this subsequent chapter of our partnership, we’ll create an excellent stronger ecosystem that delivers distinctive buyer experiences whereas constructing sustainable progress for all of us.
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