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Naresh Wadhwa, Cisco India: We Will Help Partners to Weather the Downturn
No matter where you work in the world today, you’re likely aware of the economic downturn impacting markets across the globe. During such uncertain times companies often face declining profits, tightening credit, delays in customer purchasing, and changing customer priorities. As companies look at new strategies to grow, Cisco’s approach to this economic downturn is the same as we have taken to other slowdowns over the last two decades. We focus on what we can control so that we can prepare for the upturn. In India, Cisco’s go-to-market strategy is entirely through channel partners and hence they are vital to Cisco’s ability to grow rapidly while maintaining margins. Although Cisco has an industry-leading channel program today, the ICT sector is changing rapidly. Customer dynamics are evolving and consumer-driven Web 2.0 practices are impacting businesses and governments, even while the competitive landscape continues to shift dramatically. In anticipation of these market transitions and to maintain industry leadership, Cisco has four key strategies for navigating the storm for and with partners.
MANAGING CASHFLOW
In order to have financial stability in this struggling economy, partners need to practice disciplined financial management. They must be able to secure reliable credit, protect their profit margins, and start building recurring revenue. Cisco will support partners in their efforts by offering them the competitive advantage of leveraging Cisco Capital. In addition, partners can acquire access to channel financing, which will help them in managing cash flow, growing sales, and increasing profitability through programmes such as Value Incentive Programme and Opportunity Identification Program.
Apart from this, customer financing help customers gain access to funds and conserve cash.
CREATE RELATIONSHIPS
It is easier and more profitable to sell to existing customers. Partners therefore must leverage customer relationships so that they can maintain their trusted advisor status. If they go back to their base there are many opportunities to upgrade and build out solutions for productivity and efficiency.
INCREASE RELEVANCE
Customers are moving towards new consumption models, and partners can help them acquire the solutions and technology they need via opex rather than capex. Cisco’s collaborative WebEx technology and emerging software-as-a- service models let partners address customer needs during the downturn. Another good example is Cisco’s Managed Services (MS) as it brings in recurring revenue that carries partners through periods of fewer transactions.
Cisco provides partners with market intelligence to help them envision and target where MS will be most compelling to the end user customers, and this includes both customer and vertical market segmentation.
PREPARE FOR UPTURN
Partners need to make targeted investments in the future. This includes developing their people to be ready for emerging technologies and customer needs, looking at next-gen resources for collaboration, and continuing to invest in new technology practices that will grow their business. Another success factor is putting greater focus on business solutions to add value and that means aligning with other partners who can help extend offerings.
To this end, Cisco provides tools such as Partner Space, Partner Connect, and WebEx Connect to facilitate partner-to-partner collaboration while data centers, ETs and ISPN support solutions practice. Cisco also has the industry’s only holistic partner talent strategy that aims at helping partners recruit, develop, and retain talent.
A RAY OF HOPE
At this point, the best defense may well be a strong offense. With these strategies in place, Cisco plans to keep focused on long-term goals despite the current economic slump. We see an opportunity to help enable the growth of our channel partners so they can tap into the remarkable opportunities that the Indian marketplace has to offer today.