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MSCP Will Facilitate Partner Revenue Growth
By
ChannelTimes Staff
Mumbai, Mar 11, 2008
Industry research suggests that managed services will continue to grow at approximately 20 per cent CAGR and reach US$7 billion in revenue by 2009. Cisco believes that managed services market will continue to outpace IT industry growth as customers look to achieve predictable costs, reduce network complexity, decrease service adoption risk, and improve time to market.
In an exclusive interview with ChannelTimes, Avinash Purwar, vice president-channel of Cisco (India & SAARC), talks about the company's Managed Services Channel Program (MSCP), launched in December 2007.
Excerpts
What is Cisco Managed Services Channel Program (MSCP)?
MSCP is designed to facilitate partner revenue growth by establishing a business framework that supports delivery of a quality managed service experience. The program defines and audits the elements needed to develop and deliver managed services based on industry standards, inputs from business customers, and Cisco s experience.
How does this program benefit partners?
MSCP helps providers deliver managed services that meet customer requirements, enabling them to profit from the large and rapidly growing managed services opportunity.
This program enables partners who invest in their managed services capabilities to best capture the market opportunity. This means having the ability to drive solutions globally with a consistent and predictable set of discounts and rebates that drive adoption of Cisco advanced technology solutions and the Cisco-based transport offers that enable them.
In terms of financial benefits, the program rewards partners for driving premium solutions based on our advanced technology product groups, and the Cisco-based IP MPLS transport that best enables our NGN vision. Premium services will achieve the new Cisco Powered Service designation in conjunction with new rebates and the go-to-market and branding benefits of the enhanced Cisco Powered Program.
It also provides branding & marketing benefits. Partners who achieve the Cisco Powered Managed Service brand will set the industry standard for the highest value-added managed services. The Cisco Powered Managed Service brand indicates the service has met Cisco and industry standards, and will receive special recognition in the enhanced Partner Locator tool on Cisco.com.
What are the benefits of this program for Cisco, end-users and managed service providers?
Benefits to Cisco include: managed services growth through increased sale of CPE and ability to more rapidly benefit from advanced technology by customers; improved customer reception and adoption of Cisco solutions; and speedy absorption of our partners' Cisco-based IP network infrastructure.
For end-users the benefits are: competitive advantage with less risk; guaranteed performance from service-level agreements; fixed costs and less capital outlay; and the ability to focus on IT strategy, not IT integration.
Finally, the managed service providers benefit in the form of: consistent global pricing strategy and procurement process; recognition of investment in managed services model and global capabilities; third-party endorsement of capabilities; and Cisco Powered branding for premium managed services.
What are the 3 levels of this program?
MSCP maps incentive rewards to the investments managed service providers make, the expertise they build, and the value that their service delivers to the customer. Benefits are based on the level of qualification the service meets, namely, Cisco Powered Managed Service (CPMS), Strategic Managed Service (SMS) and Legacy Managed Service (LMS).
Is Cisco continuing to offer a single-channel program for partners that deliver Cisco products through resale, managed services and outsourcing offerings?
Yes. The Cisco Channel Partner Program is designed to deliver a single-channel strategy in support of the 3 main types of offers our partners make: local resale, managed services, and outsourcing. Each area of the program is streamlined to best support that particular type of partner offer. A partner may participate in more than one program (for example, resale and managed services).
Does MSCP provide specific rewards for services targeted at the SMB market?
The Cisco Managed Services Channel Program will address the SMB market in future phases of the program.
Related Links
Cisco's MSCP to Incentivize Partners
Cisco to Smarten and Strengthen its Channel Team
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