© 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 1 Cisco ® Value Incentive Program 11 Commitment to Partner Profitability

© 2007 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialC97-420923-00 1

Cisco® Value Incentive Program 11

Commitment to Partner Profitability

February 7, 2008

Aug 11, 2005


Agenda

Program Foundations

Security Overview

Unified Communications & Unified Communications Express Overview

Advanced Wireless LAN Overview

VIP Period 11 Program Summary & Timeline

Global CSAT Surveys

PRV – Partner Rebate View

VIP Program Future Qualification


Program Foundations

Cisco® Value Incentive Program is a crucial component of the Cisco commitment to partner profitability

Voice, Wireless LAN, and Security products included

Ongoing program with 6-month payouts

Reviewed for periodic enhancementsShould evolve with customer and market needs

Should build and reward partner competency in areas valued by the customer

Should promote the correct behavior and be forward-looking

Should align direct sales force and partner incentives

Promotes the value of the integrated Cisco infrastructure advantage (Intelligent Information Network [IIN])


Security

Cisco® VIP Period 11 Program Specifics


Channel Imperatives for Security

Channel Goals

Promote partner growth and profitability

Help ensure that every partner provides core security solutions with every network sale

Empower partners to invest in selling advanced security solutions—e.g., a self-defending network with every sale

Channel Strategies

Build channel capacity that can sell and deliver advanced security solutions

Provide tools and incentives to partners to build advanced security practices, including lifecycle and professional services

Encourage core security solutions with all network sales


Cisco® VIP 11 Objectives

To accelerate the building of advanced security practices: Maintain consistent incentive rebate percentages

Support partners in their development of practices for leading-edge, more complex security technologies

Maintain the number of product families in both the foundation and advanced categories


Cisco® VIP Security Program: Historical Evolution

VIP 1 VIP 2 VIP 3 VIP 4 VIP 5 VIP 6 VIP 7 VIP 8 VIP 9 VIP 10 VIP 11

Partner Profitability X X X X X X X X X X X

Builds Security Practice

X X X X X X X X X X X

Broadens Security Focus

X X X X X X

Base Rebate 10% 10% 10% 10% 10%12%

7%

14%

7%

14%

6%

14%

6%

14%

6%

14%

6%

Growth Rebate — 2% 2% 2% 2% — — — — — —

Cisco Gold Certification Rebate

+1% +1% +1% +1%

Cisco Master Specialization Rebate

+1% +1% +2% +2%


Cisco® VIP 11 Security Rebate

Specialization: Must maintain valid Advanced Security Specialization for the entire program

Sales Volume: Minimum bookings: US$20,000 net bookings in qualifying Cisco Security SKUs for specified dates

Customer Satisfaction: Average customer satisfaction score: 4.31 (APAC only) or higher on all surveys received for specified dates

Simplified requirements; only three components:

Rebate Requirement Security

Foundation SKUs Meet program exit criteria 6% Category Foundation product shipments

Advanced SKUs Meet program exit criteria 14% Category Advanced product shipments

Gold Certified Partners

Meet program exit criteria 1% product shipments

Master Specialized Partners



Unified Communication



Channel Imperatives for Unified Communications

Channel GoalsBuild channel capacity and capability of voice applications

Up-sell installed Unified Communications customers with new or extended applications

Make applications a more significant part of every Unified Communications sale

Improve partner profitability and services revenue

Channel StrategiesProvide tools and incentives to partners to build voice application practices, including lifecycle and professional services

Promote network sales with Unified Communications

Use Cisco® VIP incentives, applications, and professional services to promote partner growth and profitability


Cisco® VIP 11 Objectives: Unified Communications

Continue to accelerate building of Unified Communications applications practices by providing increased incentives for applications

Support partners in development of practices for leading-edge, advanced Unified Communications applications

Simplify program structure by eliminating previous attach rate design

Move to simply paying for applications at a higher rate than for non-applications—no more attach rate threshold

Continue to reward Cisco VIP partners for basic Unified Communications sales and for voice-enabled integrated infrastructure sales


Cisco® VIP Unified Communications Program: Historical Evolution

VIP 1 VIP 2 VIP 3 VIP 4 VIP 5 VIP 6 VIP 7 VIP 8 VIP 9 VIP 10 VIP 11

Partner Profitability X X X X X X X X X X X

Builds IPC Practices

X X X X X X X X X X X

Application Focus X X X X X X

Base Rebate: Foundation*

10% 10% 20% 20% 20% 8% 16% 17% 17% 15% 15%

Incentive Rebate: Advanced*

— 2% 2% 2% 2% — — 20% 20% 21% 21%

Applications Rebate

— — — — —+2–6%

+4–6%

Cisco Gold Certification Rebate

+1% +1% +1% +1%

Cisco Masters Specialization Rebate

+1% +1% +2% +2%


Cisco® VIP 11 Unified Communications Rebate

Rebate Requirement Unified Communications

Foundation SKUs Meet program exit criteria 15% Category Foundation product shipments

Advanced SKUs Meet program exit criteria 21% Category Advanced product shipments





Simplified Requirements: Only Three Components: Specialization: Must maintain valid Advanced Unified

Communications Specialization for the entire program

Sales Volume: Minimum bookings: US$25,000 net bookings in qualifying Cisco UC SKUs for specified dates



Cisco® VIP 11 Unified Communications Express Rebate


Foundation Meet program exit criteria 10% Category Foundation product shipments

Advanced Meet program exit criteria 16% Category Advanced product shipments


Meet program exit criteria NA



Simplified requirements; only three components:

Specialization: Must maintain valid Unified Communications Express Specialization for the entire program

Sales Volume: Minimum bookings: US$15,000 net bookings in qualifying Cisco UC Express SKUs for specified dates



Wireless LAN



Cisco® VIP 11 Wireless LAN Rebate


Foundation Meet program exit criteria 3% Category Foundation product shipments

Advanced Meet program exit criteria 8% Category Advanced product shipments





Simplified requirements; only three components: Specialization: Must maintain valid Advanced Wireless LAN

Specialization for the entire program

Sales Volume: Minimum bookings: US$15,000 net bookings in qualifying Cisco WLAN SKUs for specified dates



Cisco® VIP 11 Program

Summary


Exit Criteria Summary for Cisco® VIP Period 11

Wireless Unified Communications Security

CSAT Score

CSAT Surveys

4.31 or Higher (APAC)

4 + 1 per $250K Above $500K (UC & Security)

2 + 1 per $125K Above $150K (UC Express & WLAN)

Maximum 20 Surveys

Bookings Minimum

$15K Q3 Entry$7.5K Q4 Entry

$25K (UC)Q3 Entry / $15K (UCE)Q3 Entry $12.5K (UC)Q4 Entry / $7.5K (UCE)Q4 Entry

$20K Q3 Entry$10K Q4 Entry

Specialization

(Required: Partner Enrollment—July 26, 2008)

Cisco Advanced Wireless LAN

Cisco Advanced Unified Communications

Cisco Express Unified Communications

Cisco Advanced Security

1st Payout Date for Cisco VIP 11

Approximately October 2008 for products booked by July 26,2008 and shipped before August 20, 2008

2nd Payout Date for Cisco VIP 11

Approximately December 2008 for product booked by July 26, 2008, and shipped between August 20, 2008 and October 25, 2008


Cisco® VIP 11 Timeline Program Period 11: January 27, 2008—July 26, 2008

Re-enrollment Required: For Cisco VIP 10 partners

Enrollment Period (for New and Existing Partners):

- February 10 to February 29, 2008 for Q3 & Q4

- April 28 to May 16, 2008 for Q4 only

CSAT Survey Period:

Start: January 19, 2008

End: July 11, 2008

Payout Dates:

- 1st check week of October/November 2008

- 2nd check week of December 2008


Cisco® VIP Tool

Online tool for channel account managers and partners to manage enrollment and re-enrollment and monitor program status

URL: http://www.cisco.com/go/viptool Re-enrollment for Cisco VIP 10 partners

All Cisco VIP 10 partners need to re-enroll between February 10 and February 29, 2008

1. Go to http://www.cisco.com/go/viptool.

2. Select your company profile that shows pending re-enrollment status.

3. You will be prompted with the following message: “Do you want to re-enroll in Cisco VIP for this program period?” Click Yes.

4. Click to accept Cisco VIP terms and conditions.

5. Review and update application.

6. Check box to accept Cisco VIP 11 program rules.

7. Submit application.


Cisco® VIP Tool: Re-enrollment—No Changes

Partners with status of “Re-enrollment required” must enroll by February 29

Partners that do not re-enroll will be rejected from Cisco VIP 11

Select profile

Click Yes to re-enroll

Click to accept terms and conditions

Verify that partner read and understands program rules

Submit application

ABC


Cisco® VIP 11 Program

Customer Satisfaction Surveys


Customer Satisfaction Schedule Cisco® VIP11 Survey Contacts Now

JAN FEB MAR APR MAY JUN

January 19, 2008 Begin sending surveys to qualified

Cisco VIP 11 contacts

Using PAL, you can schedule and send surveys in FY08 to the same contacts surveyed in Cisco FY07 survey year

Choose PAL > Send Surveys and scroll to bottom of screen; select the No Surveys Scheduled/Sent filter

July 11, 2008

Survey Deadline

All survey responses must be received by

5:00 p.m. (Pacific Time): No exceptions

JUL

Important Dates for Cisco VIP 11 Survey Sending in Cisco PAL


Customer SatisfactionQualifications for CSAT valid surveySurveys sent by partner to end customer

Respondent selects “Yes” to one or both of the “survey customization” questions at the beginning of the survey

Respondents who answer No will never be presented with the partner-related questions, and the responses will be stored with the Cisco PAL "no partner identified" classification

Respondents can answer No or Don’t Know for most of the additional survey customization questions to reduce their survey response times


Critical that the respondent answers YES to the following question to provide a pre-sales rating

Critical that the respondent confirms the respective technology (ies) they received from the partner. The partner pre-selects the technologies prior to sending the survey to the respondent.

(Insert Partner Name)

Critical that the respondent provides pre-sales satisfaction rating


(Insert Partner Name)

Partner Name)

Partner Name)

Critical that the respondent answers YES to the following question to provide a post-sales rating if support is provided by partner

Critical that the respondent answers YES to the following question to provide a post-sales rating if support is provided by partner

Critical that the respondent provides post sales satisfaction rating


Customer Satisfaction – What counts towards VIP

Survey sent by Partner Counts for Certification

Counts for VIP Security

Counts for VIP UC

Counts for VIP Wireless

UC, Security & Wireless NOT selected

Y N N N

UC selected; Security & Wireless NOT selected

Y N Y N

UC & Wireless NOT selected; Security selected

Y Y N N

UC, Security & Wireless selected

Y Y Y Y

Survey was NOT sent by Partner

Counts for Certification

Counts for VIP Security

Counts for VIP IPC

Counts for VIP IPC

All scenarios Y N N N

Response must be received by 5:00 p.m. PT on July 11, 2008


Customer SatisfactionVIP Tool: Survey Status

Send Surveys through PAL tool

View VIP results through VIP Tool

Summary requirements and results information

Detail Results Report


Partner Rebate View


Partner Rebate View Tool Benefits

Partner Rebate View is a reporting tool that provides daily visibility on your progress-to-date in the current Value Incentive Program

VIP eligible bookings details are transitioning from the VIP Tool to the Partner Rebate View

Partner Rebate View benefits:

– Daily updates throughout the program period

– Visibility to SKU-level bookings details for eligible and ineligible orders

– Ability to download SKU-level bookings details

– Visibility on Reseller to Distributor POs

– Expanded access to data for two previous VIP periods


Eligible & Ineligible Bookings are accessed by selecting these tabs

Partner Rebate View – Bookings Summary


Partner Rebate View Navigation

Select the program from the drop down list

Select a technology from the drop down list

Press Go to update your view


VIP Program Future Qualification

Partners must have Premier certification in addition to their associated Advance Technology Specialization beginning in VIP12


Cisco® VIP Period 11 Support Open a case on partner help online:

www.ciscopartnerhelp.com

Select the Program’s category and the Value Incentive Program subcategory when submitting your case

Cisco VIP URLs

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

Cisco Partner Rebate View (PRV) :

https://tools.cisco.com/mbrre/saw.dll?Dashboard

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


Documents

© 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialC97-420923-00 1 Cisco ® Value Incentive Program 11 Commitment to Partner Profitability