Cisco Continues SMB Onslaught With New Services, Gear

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By Andrew R Hickey, ChannelWeb


3:26 PM EDT Thu. Jun. 04, 2009


Delivering on its promised $100 million investment in the SMB market, Cisco Systems launched a host of new products and services aimed directly at small business that the company said can boost partner profitability.

The new products and services, which include additions to the Cisco Small Business Pro series, arm the channel with the capabilities to install and manage systems that hit the needs of smaller companies.

"Small business to Cisco is definitely big business," said Rick Moran, Cisco's vice president of small business networking.

Cisco's SMB push took hold in earnest late last year when the San Jose, Calif.-based networking giant said it planned to funnel $100 million into SMB initiatives and kicked off the rebranding of its Linksys small business products as Cisco Small Business, while also wrapping its Linksys small business partners into the Cisco channel. This year and next year is when partners will see Cisco executing on its SMB initiatives, said Andrew Sage, Cisco's vice president of worldwide small business sales.

"Fiscal Year 2010 is the year of execution for sales and the channel, the product suite and services for the SMB," Sage said. "Last year we were as committed, but now it's more concrete."

At Cisco Partner Summit on Thursday, Cisco launched a handful of new services for partners selling into the SMB market.

First, Cisco unveiled the ESW 500 Series Switches. Part of the Small Business Pro portfolio, the switches integrate with other Small Business Pro products and the Cisco Smart Business Communications System to build a solution for small businesses. The ESW 500, which comes in 24- and 48-port models with optional PoE, includes a five-year warranty that ties in next-business-day hardware replacement, free software fixes and 90 days of free tech support with one-year click-to-chat support, said Ian Pennel, senior vice president of Cisco's small business technology group. The series is available now and ranges in price from $659 to $3,299.

And for partners looking to transition their SMB clients to VoIP, Cisco unveiled the SPA8800 IP Telephony Gateway, a Small Business Pro box that lets small businesses connect their open-source IP PBX to their existing analog phones and faxes. The SPA8800 lists for $600 and will be available in the U.S. in late June.

On the Cisco Small Business side, Cisco added the PVC300 IP Camera, an IP video surveillance camera that captures live video that's viewable on any screen, including Web-enabled mobile phones. The camera has pan, tilt and zoom capabilities and software to manage up to 16 cameras from one location. In addition, it sends alerts when motion is detected and integrates with alarms, door sensors and security systems. The PVC300 IP Camera integrates with the Cisco NSS2000 and NSS3000 Network Storage Systems for video storage and backup. The PVC300 is available now for a list price of $794.

Cisco also debuted the latest version of its Cisco Smart Business Communications System (SBCS), version 1.5, a collaboration and communication system that ties together offices, employees and customers. The newest version adds WebEx PhoneConnect for single-click online meetings and conferences directly from Cisco IP phones; Cisco TimeCard View, which lets users clock in and out and track hours and payroll information from IP phones; and single-number reach and third-party networking monitoring and management applications. SBCS version 1.5 starts at about $450 per user and is available now.

Pennel said the goal of the new products is to make it easier for partners to sell, design, install and support solutions in the SMB market.

Next: Cisco Debuts New SMB Services, Support Options Cisco also added new services, including the Cisco Small Business Pro Service, which gives SMBs three years of technical support and coverage for Small Business Pro solutions and offers next-day hardware replacement and extended support center access. Cisco also offers community-based support via the online Cisco Small Business Support Community, a virtual community that lets partners and customers share knowledge and expertise about small business technologies and issues.

Cisco has also boosted the rebates for Select certified partners that participate in the global Partner Development Funds (PDF) program, offering up to $15,000 until July 25. At the same time, Cisco unveiled the new Small Business Performance Accelerator, a rebate program for registered partners selling into SMBs. Partners can also now leverage extended channel financing terms of 90 days for the next six months.

"We're going to be very focused on making support a major component of the SMB," Sage said, adding that Cisco is launching a Small Business Support Center to offer presales and postsales support.

Sage added that enabling partners to build lasting relationships with small business customers is at the heart of the new product and service launches.

"Being a trusted adviser to small business is what it's really about, he said. Sage noted that Cisco is refreshing its SMB training for partners through new SMB University specializations and certifications. Cisco is also putting $1 million into demo equipment and not-for-resale programs for partners, so they can "make sure customers know they're in this business."

Other new offers include live leads via Cisco.com, a new Buy Now button on Cisco.com for selected SMB products that routes the sales through online partners and new smart designs for small business, which are essentially blueprints of SMB deployments that can be replicated to cut down the sales cycle.

In addition, Cisco is offering customers incentives as they move to Cisco's small business offerings. Cisco is providing migration strategies from Linksys gear, discounts of 5 percent to 7 percent and price reductions that let customers save up to 25 percent on the SBCS system.

Partners said Cisco's strong focus on the SMB space will make it easier to engage customers.

"It's going to make it easier for us to sell the products," said Robert Betzel, president and CEO of Macon, Ga.-based Infinity Network Solutions.

Betzel added that having more offerings directly aimed at the SMB, as opposed to whittling down enterprise-focused solutions to fit in smaller environments, will create benefits.

"A small business isn't going to buy something like the enterprise will just for fun," he said.


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