Cisco Program To Reward SMB Deals

Sources familiar with the company's strategy said Cisco next month plans to announce the expansion of its Opportunity Incentive Program (OIP) to include Success Builder, a new deal registration program for accounts with fewer than 500 employees.

OIP Success Builder provides additional, exclusive product discounts across Cisco's technology portfolio to channel partners that register new business opportunities with Cisco.

In addition to the discounts, OIP Success Builder will also include leasing programs and learning credits, sources said.

A Cisco spokeswoman said the company is rolling out new channel programs focused on the SMB market but declined to provide details.

Success Builder is the first OIP offering to target a market segment rather than a technology. OIP already includes IP Freedom for VoIP products and IP Network Defender for security products.

By providing additional discounts, OIP helps protect margins when bidding wars erupt between Cisco partners, said Jay Kirby, vice president of sales at Troubador, a Houston-based solution provider.

"Where we typically get injured is where a carrier or someone in fulfillment comes in at the eleventh hour and drops in a [low] bid," Kirby said. "OIP prevents that."

The new OIP effort is the latest in a barrage of moves Cisco has made to tighten channel partnerships and increase its share in the SMB market.

The San Jose, Calif.-based company earlier this year segmented its sales force, creating a dedicated group of sales reps to work with partners to focus on the SMB market.

With the help of its distribution partners, Cisco has also culled a list of 2,000 solution providers it is hoping to recruit into SMB Select, a partner program launched in July targeted at solution providers that focus on customers with fewer than 500 users.

So far, Cisco has signed up 340 partners for SMB Select.