3 Questions, John DiLullo, Cisco Systems

CRN:

Why is Cisco expanding its focus on small businesses?

DILULLO: IT spending for SMB customers is growing 20 percent to 50 percent faster than it is in enterprises. You have to go where the opportunity is. … As things get more complicated, the need for support becomes more important. Security is no longer just an enterprise concern. Even SMBs need secure networks that are up 100 percent of the time.

CRN: Will small-business sales go exclusively through the channel?

DILULLO: There is no backroom plan for Cisco to use a direct model. We like distribution. We need the channel for credit, reach, scope, availability, support. This is our plan.

CRN: What plans are in place now to incent solution providers in the SMB market?

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DILULLO: Our strategy is to help distributors create branded SMB reseller offerings. … This strategy is designed to help our distributors move up the value chain, differentiate themselves and offer better solutions to the channel. Examples include Ingram [Micro’s] Glacier program, Tech Data’s Comet program and the SMBx program at Comstor. Cisco has also launched other SMB-focused initiatives: SMB Partner Easy Discount, launched in February, is a pricing incentive that provides additional instant discounts on select switching, security and wireless products; and SMB Icebreaker, launched in December 2004, offers pricing incentives on switching products for partners competing for new Cisco customers. There’s also our existing SMB Select designation.