Partner Support Service 202 September 2013 2013 Cisco

About this presentation Audience • Partner business decision makers (see PSS 301 for a more technical presentation) • Cisco PSDMs and BDMs Prerequisite • PSS 101 Goals • Understand partner business implications of PSS • Understand the process to assess and adopt the components of PSS © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

Agenda Review: PSS 101 PSS market growth Is Partner Support Service right for my business? PSS adoption best practices Key takeaways © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

Partner Challenges and Questions How do I evaluate the fit of PSS to my business? How do I successfully move from CBR to a Collaborative model? © 2013 Cisco and/or its affiliates. All rights reserved. How do I integrate “smart” into my offers and operations? How do I maximize my CSPP rebates with PSS? Cisco Confidential 4

What makes a Cisco service “smart”? …Which Collect Services with… Automated Software-Enabled Capabilities …Which Is Analyzed and Compared With Cisco Installed Base & Diagnostic Data + Cisco’s Deep Knowledge Base …to Provide Actionable Insight + CISCO DEEP KNOWLEDGE BASE 25 years of networking innovation & leadership 6 million annual customer interactions 50 million installed devices 90, 000+ technical documents © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Partner Support Service Develop and deploy services based on both foundational & smart capabilities Smart Capabilities IB Management Alert Reporting Device Diagnostics Software Updates Advance Hardware Replacement Online Technical Resources Partner Access to Cisco TAC Foundational Capabilities Smart Interactions - Smart Bonding - Smart Portal - Smart APIs - PSS Support Community Combining visibility to end customer devices and networks with Cisco intellectual capital Drive Incremental Services Revenue Improve Operational Support Margins Increase Customer Loyalty © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Agenda Review: PSS 101 PSS market growth Is Partner Support Service right for my business? PSS adoption best practices Key takeaways © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

PSS Results through FY 13 Partners • Over 500 Partners worldwide eligible to embed PSS into their offers (47 in US&C; 56 in LATAM) Smart Adoption • 150+ partners worldwide embedding PSS smart capabilities into their offers • 240+ customers deployments worldwide of Smart-enabled Partner offers Identified Opportunity* • Uncovered Chassis: well over 30% • Chassis past Last Day of Support: ~14% • Chassis reaching LDo. S within the next 12 months: ~7% *avg across all collected customer networks © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

Assessing Fit with your Current Business Model How can PSS enhance your processes and operations to support your strategic business goals? Business Goals Grow Managed Service Practice Strategic Initiatives Create Collaborative Offer Processes, People, Technology Insertion into NOC, Sales, Contract Management, etc. © 2011 Cisco and/or its affiliates. All rights reserved. This document is Cisco Confidential. For Channel Partners only. Do not distribute. 9

Identifying your Starting Point What is my predominant business model? Do I have the procedures and tools (TT, CMDB) to support my customers? © 2013 Cisco and/or its affiliates. All rights reserved. Am I already delivering Collaborative services? Are my MS customers calling me or Cisco for break/fix? Cisco Confidential 10

Agenda Review: PSS 101 PSS market growth Is Partner Support Service right for my business? PSS adoption best practices Key takeaways © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

Best practice: Phased adoption Crawl Pilot © 2013 Cisco and/or its affiliates. All rights

PSS adoption best practices: Adoption “tracks” Ops & Delivery track: Foundation Service Delivery, Maximize Rebates Smart Adoption track: Deploy, Operate, Business Impact, Benefits Go-to-Market & Scale track: Marketing, Sales, Legal, Finance © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Best practice: Phased adoption Crawl Walk Run Sprint Operations & Delivery Track Smart Adoption Track Go-to-Market & Scale Track Pilot © 2013 Cisco and/or its affiliates. All rights reserved. 2 customers 12 customers Scale Cisco Confidential 14

Operations & Delivery Track Purpose Milestones and Activities Desired Outcomes Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. • Ensure your readiness for collaborative service delivery under the CSPP framework • Identify target PSS customers & analyze potential rebates • Ensure your Help Desk has capability to resolve cases • Order PSS for a select group of customers • Measure rebate results Smart Adoption Go-to-Market & Scale Cisco Confidential 15

Operations & Delivery Track – Milestones Owner Initial delivery capability review PBC/Partner PBC - initial IB analysis and review Target PSS customers list for PSS ordering Target PSS customer list analysis Partner delivery gap analysis based on PBC analysis Target PSS customer list agreed Internal process review collaborative delivery Q&O training PSS quoting and Ordering readiness PSS quote to pilot customers PSS ordered to pilot customers © 2013 Cisco and/or its affiliates. All rights reserved. PBC PSDM/BDM/PA RTNER PBC/PSDM/PAR TNER Description Web. Ex meeting PBC metrics analysis of the partner customer base from a PBC metrics metric analysis of. POV. the partner base from a delivery metric POV. This analysis delivery Thiscustomer analysis results in a "what if" scenario projecting expected rebates if these customers renewed as PSS contracts. Based on the PBC analysis, the partner will create a list of good PSS candidates. Further drill down based on the PBC analysis. In some cases need to agree on included customer name conventions, contract numbers, data validity, methodology, etc. PBC Partner readiness to resolve L 0 -L 2 incidents w/o escalating to Cisco. PARTNER Based on the analysis, a list is locked and dated. PBC/PARTNER Mainly evaluation of NOC and contract renewal processes. PSDM/PARTNER Making sure the partner imported the price file and can order. Create test quotes. PARTNER Validate by PSDM. Compare to SNT pricing. Cisco Confidential 16

Example: Target PSS Customer Analysis Cisco TAC Case Categories Case Complexity Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. Smart Adoption Go-to-Market & Scale Cisco Confidential 17

Example: Target PSS Customer Rebate Projection • Identity best customer targets • Minimize your SR / RMAs to maximize your rebates Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. Smart Adoption Go-to-Market & Scale Cisco Confidential 18

Smart Capabilities Adoption Track Purpose Milestones and Activities Desired Outcomes Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. • Test drive smart services • Understand their impact on your business • Deploy smart with 3 -5 pilot customers • Review smart data and value with key stakeholders • Identify improvements based on pilot results • Key stakeholders understand the value of smart • Smart incorporated into operations • Ready to scale smart Smart Adoption Go-to-Market & Scale Cisco Confidential 19

Step Milestones Owner 1 Smart components socialization with executive champions and stakeholders. BDM 2 PSS technical knowledge transfer EM 3 4 Smart Portal COLT training and registration completed Target customers for Smart pilot identified and agreed upon EM/PARTNER PSDM/BDM/PARTNER 5 Smart services pilot deployment initiated EM/BDM/PARTNER 6 IB&A (collector deployed, inventory uploaded) BDM/EM/PARTNER © 2013 Cisco and/or its affiliates. All rights reserved. Description There should be at least one champion from sales, marketing, and operations/NOC. Describe and discuss smart components in terms of top line revenue growth, lowering operating margins, and increasing customer loyalty to business owners and technical team in terms of partner vision/goals and strategies. The goal is to get in buy-in and clear stakeholder support. Additionally, milestones should be shared and a venue for updates to executives provided. The Engagement Manager (EM) works with partner designee to help ensure an orderly pilot. This should be the minimum required to deploy the pilot. EM to provide training to partner and assist in registration. Based on the PBC analysis. Customers who fit the profile, fit the metrics, and have a renewal approaching. This pilot is preferably with a few friendly customers. The documentation needs to cover partner and customer benefits to help the partner "sell" the pilot to the customer. Use the data to uncover sales opportunities, opportunities to lower service delivery costs, and opportunities to differentiate in the market. Work with partner leads to understand data Cisco Confidential 20

Step 7 Milestones Smart Portal data reviewed analyzed by partner exec sponsor and stakeholders. Smart Portal data presented to partner's functional 8 groups to to identify ways to "smart-enable" their current presented partner's workflows BDM/EM/ functional groups to 9 Internal process - smart services integration identify ways toreview "smart. PARTNER enable" their current 10 Repeat customer pilots workflows 11 Prepare business case and implmentation plan for partner exec approval © 2013 Cisco and/or its affiliates. All rights reserved. Owner BDM/PA RTNER Description Business presentation of information uncovered from the collection. An onsite meeting review specific businessfor each An onsite meeting to to review specific business opportunities BDM/EM functional area (sales, marketing, contract management, help desk, NOC /PARTNE opportunities for each functional area (sales, operations). Opportunities must be captured and prioritized within a R partner-driven implementation plan. marketing, contract management, help desk, NOC BDM/PA Review lessons learned, and begin to formulate GTM ideas. and operations). Opportunities must be captured RTNER prioritized a partner-driven implementation BDM/EM Repeatwithin initial deployment(s) and data analysis with more customers. /PARTNE See the Envision methodology present in the playbook. The partner plan. should aim for 3 -5 pilot customer deployments. R BDM/EM Includes market need/opportunity, partner offer(s), customer benefits, /PARTNE operations implementation plan, resource requirements, etc. as part of R proposal to partner to scale PSS. Cisco Confidential 21

DEVICES IN INSTALLED BASE Contract Status Count of Contract Status Row Labels Catalyst 2960 S-48 FPS-L Switch Catalyst 2960 S-48 LPS-L Switch Catalyst 2960 S-48 TS-L Switch Cisco 1841 Integrated Services Router Cisco 1941 Integrated Services Router Cisco 2811 Integrated Services Router Cisco 2851 Integrated Services Router Cisco 2911 Integrated Services Router Cisco 837 ADSL Broadband Router Cisco 877 Integrated Services Router Cisco 880 3 G Integrated Services Router Cisco 887 VA M Integrated Services Router Cisco ASA 5520 Adaptive Security Appliance Cisco ASR 1001 Router Cisco Catalyst 2950 C 24 Switch Cisco Catalyst 2950 G 24 EI Switch Cisco Catalyst 2950 G 48 EI Switch Cisco Catalyst 2960 -24 TC Switch Cisco Catalyst 2960 G-24 TC Switch Cisco Catalyst 2960 S-48 FPD Switch Cisco Catalyst 3560 -48 PS Switch Cisco Catalyst 3560 -48 TS Switch Cisco Catalyst 3560 G-24 TS Switch Cisco Catalyst 3560 G-48 PS Switch Cisco Catalyst 3560 G-48 TS Switch Cisco Catalyst 3750 -24 FS Switch Cisco Catalyst 4507 R Switch Cisco Catalyst 6509 Switch Cisco ME 3400 G-12 CS-A Switch ME 3400 Not Available (blank) Grand Total 1 UNCOVERED DEVICES Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. Chassis Coverage Chassis 8 1 6 2 19 2 8 2 2 3 2 1 1 5 3 2 11 1 1 2 2 4 1 2 2 2 102 60 50 40 30 20 10 0 ACTIVE OVERDUE UN-COVERED • 37 out of 102 chassis are not covered by a support contract • 10 chassis are overdue Smart Adoption Go-to-Market & Scale Cisco Confidential 22

Eo. LDo. S 2007 -Mar-01 2011 -Dec-31 2012 -Jun-28 2012 -Nov-30 2013 -Oct-31 2013 -Dec-31 2014 -Mar-15 2014 -Nov-27 2014 -Dec-27 2015 -Jul-31 2016 -Oct-31 2016 -Nov-30 2016 -Dec-31 2017 -Jul-31 2017 -Sep-30 2017 -Oct-31 2018 -Jan-31 2018 -Mar-31 Grand Total • 12% of the installed based is due for refresh! • • • 13 devices past Eo. LDo. S 7 more this year 5 more in 2014 Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. Count of Product Family Smart Adoption 3 6 2 2 1 6 1 1 3 7 27 3 2 8 1 6 11 76 166 Go-to-Market & Scale Cisco Confidential 23

OS fragmentation • Consulting Opportunity ($$) • Consolidation can Lower Partner Operational Costs Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. Smart Adoption Go-to-Market & Scale Cisco Confidential 24

Map “As-is” Processes Document Processes: Processes People & Tasks Technology & Tools Key Metrics Prepared by partner in advance © 2013 Cisco and/or its affiliates. All rights reserved. Identify Gaps & Implement Improvements Enhance Processes Via: Smart Collectors Reports & Alerts Smart Portal APIs Device Diagnostics Smart Bonding During workshop Ongoing “Smartenabled” Processes Manage Processes Via: Documentation KPIs Ongoing optimization On-going by partner Cisco Confidential 25

• Identify People, Technology & Tools throughout Process • Identify Key Performance Indicators (KPIs) Existing Process: Call-in Determine Device Details Validate Entitlement Initiate a support case Search for SN and contract number Entitlement accepted (Y/N) or resolution required Escalate Validate Entitlement Resolved/Corrected Case escalated to Cisco Serial # and contract validated by Cisco (Y/N) Entitlement accepted or resolution required Updated Process with Installed Base Management: Initiate a support case © 2013 Cisco and/or its affiliates. All rights reserved. SN and contract validated using IB Management Case escalated to Cisco Correct entitlement Cisco Confidential 26

Go-to-Market & Scale Track Purpose • Scale to a fully integrated & repeatable process • Develop a collaborative/smart offer Milestones and Activities Desired Outcomes Operations & Delivery © 2013 Cisco and/or its affiliates. All rights reserved. • Integrate “smart” into day-to-day operations • Launched a collaborative offer • Partner built a smart-based offering Smart Adoption Go-to-Market & Scale Cisco Confidential 27

Milestones Detailed offer development – based on pilots Internal contract management and ops process re-engineering External offer definition Define market and marketing develop Definetarget market and develop planmarketing plan © 2013 Cisco and/or its affiliates. All rights reserved. Owner PARTNER PARTNER Develop sales plan and compensation PARTNER Address legal aspects PARTNER Develop ops training materials PARTNER Develop sales training materials PARTNER Launch new offer PARTNER Cisco Confidential 28

• Enhancing existing offers • Creating new offers • RFI/RFP submissions • Offense/Defense

Best practice: Phased adoption Crawl Walk Run Sprint Operations & Delivery Track Smart Adoption Track Go-to-Market & Scale track Pilot © 2013 Cisco and/or its affiliates. All rights reserved. 2 customers 12 customers Scale Cisco Confidential 30

Agenda Review: PSS 101 PSS market growth Is Partner Support Service right for my business? PSS adoption best practices Key takeaways © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31

Key takeaways • PSS can help your business become more profitable while differentiating your offering • Cisco has developed a proven adoption methodology, helping you to become more successful quickly • Cisco PSS resources are in place with the expertise to help you succeed • Approach your PSDM in order to kick-off the process © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32