Cisco Talking Up Distributors’ Strategic Value to Partners

Cisco (CSCO) is making another run at promoting the company’s distributors, with Andrew Sage, Cisco Americas Distribution vice president, talking up an itemized list of two-tier programs “designed to grow partner revenue and profit” available to its roster of channel partners.

With some 80 percent of Cisco’s $47 billion in 2014 fiscal revenue generated from indirect channels, and a significant portion of that coming from distribution, the networking giant has a vested interest in seeing its 170 distributors globally do well.

Might Sage’s pro-distributor blog signal a Cisco plan to shift more direct accounts to distributors? Or is the networking giant readying a partner recruitment push?

One thing’s for certain: Sage wants to make clear to partners each distributor’s program benefits and potential growth from engagement.

In a blog post similar to other distribution-centric entries from Cisco’s channel group, Sage again made the point that “Cisco distributors worldwide … do more than just pick, pack and ship. Each distributor offers an abundance of services and expertise–from technical support, to certification training, to marketing services. Many have solution demo centers, financing options and extensive training on Cisco products and services,” he wrote.

“That isn’t just talk,” he said. “A distributor is only as healthy and as profitable as its partners. Distributors have a vested interest in the growth and success of their partner customers.”

In particular, Sage called out four programs from Cisco’s distributors–Avnet’s (AVT) Propel, Comstor’s Edge, Ingram’s (IM) Fly Higher and Tech Data’s (TECD) Momentum–for Cisco’s partners to check out if they haven’t already.

Sage said that under Avnet’s Propel program, which is partially funded by Cisco and includes training, demand generation, marketing, certification, onboarding and dedicated business development managers, 12 partner companies built a pipeline of more than $58 million in four months.

With Comstor’s Edge program–which provides a host of services such as logistics, financing and integration services, marketing, and technical and engineering support–17 Cisco partners are engaged in one form or another, generating some $200 million in pipeline opportunity, according to Sage.

As for Ingram’s Fly Higher, a go-to-market program featuring two “Cross Architecture Boot Camps,” it has attracted some 62 channel partners whose average monthly Cisco sales now are growing at a 31 percent compared to flat growth prior to their participation, Sage said.

And, Tech Data’s Cisco Momentum enablement model, which kicked off two years ago, has seen engaged partners grow an average of 50 percent year-over-year, he wrote.