© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential 1 PROGRAM PERIOD 14 August 4, 2009, 8:00 a.m. (PDT)

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1

PROGRAM PERIOD 14—

August 4, 2009, 8:00 a.m. (PDT)

© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Cisco Value Incentive Program

Commitment to Partner Profitability

August 4, 2009


Agenda

What’s New:– VIP Evolution

– Borderless Networks, Collaboration and Virtualization

– Multinational

– CSAT

Program Rules

Program Summary

Tool– VIP Tool: Enrollment

– Partner Program View: Booking & CSAT

Support


What’s NewVIP EvolutionBorderless NetworksCollaborationVirtualizationMultinational CSAT

© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4


In Line with the Cisco and Cisco Channel Partner Program Evolution, VIP Is Evolving and Increasing Benefits for Partners that Sell

Advanced Solutions within an Eligible Architectural Play

Next Generation VIP ProgramBegins with VIP Period 14

UC CollaborationUC Collaboration

DC VirtualizationDC Virtualization

Security, Wireless Borderless Networks Security, Wireless Borderless Networks

Architectures drive business transformation Architectures drive business transformation



New VIP Subtracks

Collaboration

TelePresence

Collaboration

TelePresenceVirtualization

Storage Networking

Unified Computing System

Virtualization

Storage Networking

Unified Computing System

Borderless Networks

Switching

Routing

Wide Area Network Optimization

Borderless Networks

Switching

Routing

Wide Area Network Optimization


Multinational Master Specialization Strategy


Support WW Channels goal of driving greater Partner Capability by:

– Development of the first theater wide multinational master specialization to allow partners greater differentiation across an entire theatre

– Provide more flexibility for partners doing business in multiple geographic regions

– Aligning the financial incentives (VIP) to recognizes these investments


Customer Satisfaction Process Simplified


Customer Sat simplified across tracks. Partners only need to achieve one score and one number for valid responses and it will apply to all tracks that partner enrolled

Measure CSAT twice a year (end of Q2 and Q4), on a rolling 12 month window

Based on outcome, partner will be eligible for VIP payout for any track (must meet all other requirements at sub track level)


VIP14 Program Rule —Borderless Networks



VIP Borderless NetworksTrack Borderless Networks

Sub-track WAN OPT Security Wireless Routing Switching

Entry requirement

AdvanceR & S

Advance Security

Advance Wireless

Premier Cert or R&S

Premier Cert or R&S

Minimum* booking

USD 80K 6mthUSD 40K 3mth



N/A N/A

CSAT target*4.40

Gold/Sliver Certification: min. 20 valid responsesPremier Certification: min. 10 valid responses

SKU Categories %( A, B, C, D)

Cat D5%

Cat B/C/D15%/10%/5%

Cat B/C/D15%/10%/5%

**Cat A/B/C/D21%/15%/10%/5%

**Cat A/B/C/D

21/15%/10%/5%

Gold bonus% 1% 1% 1% N/A N/A

Master bonus% N/A 3% N/A N/A N/A

BN Kicker%*** N/A 2% 1%

*APAC only**Only Opportunity Incentive Program (OIP) and Solution Incentive Program (SIP) standard deals related to Routing and Core Switching sub-tracks. are entitled to this registered incentives. China is out-of scope for OIP/SIP kicker*** Lesser of 1% on Core Routing/Switching net bookings or 2% combined SEC/WLAN net bookings


Borderless Networks Kicker

Eligible Core Shipped Bookings * 1%

Security + Wireless Shipped bookings * 2%

Payout Rules:

1. Partner must meet VIP qualification rules in R/S, Security, and Wireless (minimum bookings, CSAT, Specialization, etc.)

2. Payout calculation: 2% of the combined Sec/Wireless shipped bookings not to exceed 1% of the R/S qualified shipped bookings calculation

Example: Partner A bookings $4M Core shipped bookings and $1M combined Security and Wireless. BN kicker $20K.

($4M x 1% =$40k, $1M x 2% =$20K, lesser of which is $20K)

Core Bookings

Core Bookings

Security & Wireless Bookings

Security & Wireless Bookings


New VIP 14 Program Wireless Structure

Key Points:• All Borderless Networks Technologies have same payout• Standards of 15%, 10%, 5% • Wireless will have SAME payout as other technologies• Increased payouts for key WNBU strategies – ie: Unified / 802.11n

Category A B C D No Incentive

Payout % 21% 15% 10% 5% 0%

Products N/A MSEWIPS

•Unified 802.11n AP’s•Standalone 802.11n AP’s•5500 Controller•Cross – BU products ( :eg: ISR with Wireless)

•4400 Controllers•WCS•a/b/g Unified AP’s

•a/ b/ g Standalone AP’s•Antennas•Power Injectors


New VIP 14 Program Security Structure

Key Points:• All Borderless Networks Technologies have same payout• Standards of 15%, 10%, 5%


Payout % 21% 15% 10% 5% 0%

Products N/A “Advanced “ Security (i.e.: IPS/IDS, CSC, SSL, CCA, MARS, etc.)

“Allocated” Products with attached AT (i.e.: Secure Routers, Switches)

“Foundation” Security (i.e.: Basic Firewall, ACS, CSM, NCM, etc.)

N/A


Our customers need a Borderless Network.

Cisco is aligning across all functions to partner with you to deliver it.

Our success depends on your success

R & S is huge portion of business. . .imagine opportunities . .added capabilities, intelligence

Cisco is ONLY company with a whole architecture

We are committed to help you deliver the Borderless Network


VIP 14 Program Rule - Collaboration



VIP Collaboration Track

Track Collaboration

Sub-track Unified Communication TelePresence

Entry requirement Advance UC Specialization ATP

Minimum booking*USD 50K 6 mthUSD 25K 3 mth

USD 100K 6 mthUSD 50K 3 mth

CSAT target*4.40


SKU Categories% (A,B,C,D)

Cat A/B/C/D21%/15%/10%/5%

Cat C/D10%/5%

Gold bonus% 1% 1%

Master Bonus% 3% N/A

*APAC only


Collaboration VIP14 Highlights Launch of new Telepresence VIP track within the Collaboration VIP program

Alignment of UC VIP payout structure with broader VIP program: 21%/15%/10%/5%

Continued reward for partners leading with advanced Collaboration sales• CUWL & UCSS sku’s continuing to pay out at Category A level

• Introduction of the WebEx/ASR node into VIP at Category A level

• Elevating of UC Management Solutions to Category A

• Raising of all Cisco Unified Communication Manager 7.X SKU’s to Category A

Removal of HP MCS Servers from VIP• Lead with comparable IBM MCS platforms

Updates to Cisco IP Phone VIP strategy• Moving older model 7940, 7941, 7960 & 7961 IP phones to Category C

• Migrate customers w/ basic phone needs to the new 6900 series IP phones in Category B

• Lead with 7942/7945/7962/7965 model IP phones for customers with advanced IP phone requirements (Category B)

Migration of the UCX, BE & UC500 VIP programs & technologies to Small Business Advantage & Commercial PDF programs


TelePresence VIP Program“Driving the Momentum”

350 customers & 2,300 TelePresence rooms Inter-carrier, intercompany solutions More network options with Extended Reach More applications with TelePresence Recording

Studio More room options with new multi-purpose

CTS1300 Tiered Rebate Structure

TelePresence end points and infrastructure included in new Category D (5%)*

New TelePresence Recording Server included in Category C (10%)*

1% Kicker for Gold Partners Requirement for authorization for TelePresence

Channel Program

*Master partner rebate incentives not applicable


Cisco PDF Pro Advanced & Commercial PDF Programs

New simplified profitability programs for Cisco Small Business Pro & Commercial UC Solutions

• Increased payout frequency – quarterly payouts

• No customer satisfaction (CSAT) requirements

• Annual program enrollment

PDF Pro Advanced• Focus on Cisco Small Business Pro & UC500 offerings

• Eligible Partners: Express, Advanced & Master UC Specialized Partners w/ the SMB or Express Foundation Specializations

• 10% rebate across full Cisco Small Business Pro portfolio

www.cisco.com/go/pdf

Commercial PDF• Migration of UCX & BE VIP programs to PDF program

• Separate tracks for Express UC Specialized and Cisco Authorized Business Edition Resellers

• Tiered rebate structure

• Foundation : 10%

• Advanced: 16%

www.cisco.com/go/commercial-pdf


VIP14 Program Rule —Virtualization



VIP Virtualization Track

Track Virtualization

Sub-track Unified Computing Storage Data Center

Entry requirement UC ATP Advance DCSNData Center Network

Infrastructure

Minimum booking*USD 50K 6mthUSD 25K 3mth

USD 15K 6mthUSD 7.5K 3mth


CSAT target*4.40


SKU Categories% (A,B,C,D)

Cat D5%

Cat B/C/D 15%/10%/5%

Cat C/D10%/5%

Gold bonus% 1% 1% 1%

*APAC only


New VIP 14 Program UCS Structure

Key Points:• VIP14 DC Payout appropriate to Cisco B-Series ONLY• DCUC-ATP Partners Only Eligible


Payout % N/A N/A 10% 5% 0%

Products N/A N/A N/A UCS B-Series SKUs

N/A


New VIP 14 Program Data Center Structure

Category A B C D No incentive

Payout % N/A N/A 10% 5% 0%

Products N/A N/A N2000, N5000 ACE APP, ACE MOD, C4KFXD, C6000, N7000

N/A

Key Points:• Nexus 2000 @ 10% Payout


VIP 13 vs. 14 Payout Structure

VIP 13 VIP14

CAT A CAT B CAT C Track CAT A CAT B CAT C CAT D

Multi UC-Host**

N/A N/A N/A 21% 15% 10% 5%

Multi UC—

Satellite**N/A N/A N/A 11% 8% 5% 3%

UC 21% 16% 12% 21% 15% 10% 5%

UCX* 16% 12% 12% N/A N/A N/A N/A

TP** N/A N/A N/A N/A N/A 10% 5%

Co

llab

ora

tion

* Moved to PDF in FY10** New in VIP14


VIP 13 vs. 14 Payout StructureVIP 13 VIP14

CAT A CAT B CAT C Track CAT A CAT B CAT C CAT D

Security 14% 6% 12% N/A 15% 10% 5%

Multi-Sec-Host**

N/A N/A N/A N/A 15% 10% 5%

Multi-Sec-Sat**

N/A N/A N/A N/A 8% 5% 3%

Wireless 8% 3% 12% N/A 15% 10% 5%

WAN Opt.** N/A N/A N/A N/A N/A N/A 5%

Routing** N/A N/A N/A ^21% ^15% ^10% ^5%

Switching** N/A N/A N/A ^21% ^15% ^10% ^5%

DC 10% 5% 12% N/A N/A 10% 5%

Storage** N/A N/A N/A N/A 15% 10% 5%

Unified computing**

N/A N/A N/A N/A N/A N/A 5%Vir

tua

l-iz

atio

n

**New in VIP14. ^Only OIP/SIP standard deals are entitled.

Bo

rde

rles

s N

etw

ork

s


VIP14 Program Rule —Multinational



VIP 14 Multinational Rules

Host and Satellites countries must be in APAC theatre.

VIP bookings be pooled across host & satellite countries only

VIP bookings will be added for each country in the “pool” and must meet the aggregate bookings targets

Partners cannot add additional satellite countries after enrollment window has closed for VIP period

Partners will not be eligible to earn VIP in satellite countries if they lose the host country specialization

Partners can only enroll in either UC orMultinational UC subtrack

Partners can only enroll in either SEC orMultinational SEC subtrack


VIP 14 UC Multinational Partner- Example 1 Partner XYZ has a Host in China and a satellite in HK but Advanced UC

Spec in Korea and Vietnam. Partner has $100k bookings in China, $100k in Korea, $10k in Vietnam and $50k in HK. All bookings are Advanced UC bookings and can be pooled to meet minimum booking level of $125K.

Country Net Bookings

VIP Bookings target

Payment % on Cat. A products

VIP payout

China – HOST $100K $50K 21% +3% $24K

Korea – Adv UC $100K $25K 21% $21K

Vietnam – Adv UC

$10K $25K 21% $2.1K

HK – Sat. $50K $25K 11% $5.5K

Total $260K $125K $52.6K


VIP 14 UC Multinational Partner- Example 2 Partner XYZ has a Host in India and Advanced UC Satellites in Singapore

and Malaysia. Host enrolls as Multinational Master with selected Satellites which means booking targets will be pooled.

Country Net Bookings

VIP Bookings target

Payment % on Cat. A products

VIP payout

India – HOST $50K $50K 21% +3% $0

Singapore – Adv UC

$20K $25K 21% $0

Malaysia – Adv UC

$20K $25K 21% $0

Total $90K $100K $0


VIP14 Program Rule — CSAT



VIP 14 CSAT Changes

One hybrid number, technology agnostic applicable to all the VIP tracks (for previous rolling 12 months)

CSAT Score: 4.40 or higher

CSAT Valid Responses Target

Certification Minimum number of responses*(Jan 25, 2009 – Jan 23, 2010)

Gold/Silver 20

Premier 10

*A valid response is a returned survey in which the end customer: - Agrees to evaluate the partner that sent the survey invitation - Rates the partner on overall customer presales satisfaction and post-sales satisfaction

*A valid response is a returned survey in which the end customer: - Agrees to evaluate the partner that sent the survey invitation - Rates the partner on overall customer presales satisfaction and post-sales satisfaction

© 2009 Cisco Systems, Inc. All rights reserved. Cisco Confidential 32© 2009 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 32

VIP 14 Program Summary


FY’10 Program Rules, VIP 14 (APAC only)

6 month net bookings minimumsCollaboration: UC $50K, TelePresence $100K

Borderless Networks: Security $40K, Wireless LAN $30K, Routing and Switching N/A, WAN Opt $80K

Virtualization: Data Center $200K, Storage $15K, Unified Computing $50K

Customer Satisfaction (CSAT)Minimum Score—4.40 or higher

Minimum survey responses required for Gold/Silver partners: 20

Minimum survey responses required for Premier partners: 10

All surveys are partner sourced

Maintain Specialization throughout entire program period

(Attainment—January 23, 2010)

Base Payout Requirements


VIP 14 Timeline

Program Period 14: July 26, 2009– January 23, 2010

Re-enrollment Required: For VIP 13 Partners

Enrollment Windows (for new and existing partners): August 10—September 4, 2009 for Q1 & Q2

October 26—November 13, 2009 for Q2 only

CSAT Survey Period: Start: January 27, 2009

End: January 23, 2010

Payout Dates:1st check April 2010 (Shipment prior to February 12, 2010)

2nd check May 2010 (Shipment bet. February 12, 2010 and May 1, 2010)

Partners and CAMs should use the VIP Tool to track enrollment status only:http://www.cisco.com/go/viptool


What does VIP 14 mean to Partners?

With new subtracks added to VIP14, Partners have the opportunity to expand their incentive payments.

VIP 14 allows Premier Partners to enroll in Borderless Networks: Routing and Switching sub tracks.

VIP 14 allows Partners to earn more incremental payouts. E.g. Borderless Networks Kicker

With CSAT Simplification, Partners only need to achieve one hybrid number across all tracks and its subtracks.


VIP Tool – How do I enroll?


VIP Program Enrollment

Logon to www.cisco.com/go/viptool and these are theSix Simple steps to enroll in the VIP program with the VIP Tool

Click Apply

On Line

11

Select the Country

22

Accept Cisco

Terms and Conditions

44

Complete the Application

Contact, Pay-To,

CSAT details

55

Click Submit

66Select the

Track

33


VIP 14 Partner Program View, PPV


Partner Program View (PPV)

Partner Program View provides daily visibility to your progress to date in the current Value Incentive Program

Partner Program View will provide visibility to VIP 14 bookings on September 4 2009.


VIP 14 Support

Open a case on partner help online: www.ciscopartnerhelp.com

– Select category “Programs”

– Select subcategory “Value Incentive Program”

– Click Submit

VIP URLs: VIP home page: www.cisco.com/go/vip

VIP Tool: www.cisco.com/go/viptool

PPV Tool: https://apps.cisco.com/mbrre/saw.dll?Dashboard

PAL Tool: www.cisco.com/go/pal


VIP 14 Period Partner Call to Action

Be certain to enroll in VIP 14

Work with your CAM to fully leverage training and enablement tools available from Cisco

Make architectures part of your daily sales practice

Celebrate success together




Documents

© 2006 Cisco Systems, Inc. All rights reserved.Cisco Confidential 1 PROGRAM PERIOD 14 August 4, 2009, 8:00 a.m. (PDT)