CRN Interview: Bob Bruce, Cisco Systems

At a time of increasing tensions between solution providers and service providers, Cisco Systems recently named Bob Bruce to the new post of vice president of worldwide service provider partners. In his new role, Bruce, formerly vice president of U.S. channels, will focus on building a service provider channel. Infrastructure Editor Larry Hooper talked with Bruce about his new role and where Cisco's solution provider partners fit into the vendor's new strategy.

CRN: You've said that solution providers and service providers will have to work more closely together in the coming years. Why is that?

BRUCE: I've been looking at what the next generation of strategic partner that we need to deal with at Cisco is. If we look at trends in the marketplace and the Internet economy, as we drive toward converged solutions, we are looking for a different alignment of assets in the field.

There will be different requirements in place not only for solution providers, but for service providers as well to focus on unique solutions. To that end, I have been charged with redefining [Cisco's service provider channel strategy within the marketplace.

CRN: The solution provider/service provider market has changed dramatically over the past five years. How do you see the role of the solution provider changing?

BRUCE: If we look at service development in the past, we have been primarily a product-focused organization, and I want to change that to a partner-focused organization.

We're going to focus on development of services, network management services that typically are driven in the small to medium-[size marketplace, as well as on outsourced high-end managed services that are going to be driven into the major named accounts.

CRN: Are you talking about services that aren't available now, or are you talking about funneling services that may already be available through Cisco's existing channel?

BRUCE: We're going to be looking at ones you're familiar with: voice-over-IP, IP VPN, storage area networking [and wireless. But we're also going to look at how we differentiate those with things like quality of service, [service-level agreements and letters of guarantee. So we'll be working very closely on services with the service provider that can be easily implemented and moved through our solution provider organization.

As an example, what we're doing right now with AT&T is a bundled T1 service that allows our solution providers to call up Tech Data and order Cisco product coupled with AT&T services and bring that total solution to the marketplace. What's equally exciting is that the solution providers will be part of the equation such that the service provider truly understands their capabilities and what they bring to the equation.

CRN: The relationship between service providers and solution providers seems to be strained right now. How are you going to deal with the animosity?

BRUCE: What I propose is the development of the next-generation partnership. I look at this as a triad. And I look at the market as our collective opportunity for the triad. The triad is Cisco with the solution provider and the service provider.

We all need each other and all are going to be interdependent on one another to provide the solution to the marketplace. The service provider needs Cisco, we need the service provider, and both of us need the solution provider. When you see markets in transition, there are going to be times when it becomes even more important that we collectively work together. I think that's where we find ourselves right now. During these times of transition and refocus, will the marketplace get turbulent? Absolutely. But it is incumbent on the [triad to work together to get to that next step in the new paradigm.

CRN: What's happening now that necessitates this change? What's wrong with the model as it is today?

BRUCE: I'm not saying there's anything wrong with the model that's going on right now, but it has principally focused on product fulfillment and delivery with some solutions wrapped around it. I'm looking to increase sophistication of the solutions and increase the profitability for the solution provider as well.

As products reach the maturation cycle, we'll find that there will be different services offered with them. We need to provide our solution providers with opportunity to become far more profitable than they have been in the past by getting away from product-centricity toward the partnership and solution-centricity.