Chambers Issues Verticalization Call To Partners

"We're now talking about specific applications by verticals, where that fits into the network, changing processes," said John Chambers, president and CEO of Cisco, San Jose, Calif., during a keynote address. "There's really no change more dramatic, if we do our job right as a team, than moving from horizontal networking sales [with] storage and security and wireless to really understanding our customers' businesses and beginning to talk about it by vertical," he said.

Chambers said solution providers would play a crucial role in Cisco's growth.

"When you look at the next one to five years, the role that you play will continually increase faster than any other segment," How we look to grow, whether it's 10 to 15 percent or above, will be successful only if we work effectively together to meet these market conditions that are occurring," he said.

Solutions that include applications that are enabled by an intelligent network infrastructure will drive future growth for Cisco, its partners and its customers, he said.

Chambers pointed to vertical markets such as healthcare and technologies such as VoIP and security as opportunities for major growth.

To encourage partners to focus on vertical solutions, Cisco this week rolled out its Solutions Incentive Program, a new initiative that provides partners with additional rebates on products that are part of partner-built solutions.

"You can make more margin based on your differentiation," said Paul Mountford, senior vice president of worldwide channels at Cisco.

Cisco defines a solution as a combination of technology, network or business applications and professional services.

Also at the partner summit, Cisco announced plans to stimulate growth by giving partners a 15 percent rebate on the value of customer equipment trade-ins, all part of an effort to transition customers to newer technology.

The program launches April 11.