‘Shifting’ Incentives; New Partner Profitability Estimator To Launch Ahead Of Cisco 360: Exclusive
‘This isn’t about cost-cutting … It’s genuinely about trying to simplify a program that we already feel was the best,’ says Jason Gallo, Cisco vice president of Partner Value Acceleration. Gallo shares emerging Cisco 360 details into how partner profitability will be determined in the new program and the new Cisco Partner Incentive Estimator.
Cisco Systems has released more details into how partners will be evaluated and compensated in Cisco 360, the fully revamped partner program that will take the place of the company’s iconic 30-year-old program next year, the tech giant told CRN exclusively.
Perhaps the biggest revelation for partners will be the introduction of the Cisco Partner Incentive Estimator, a tool that will help partners determine their profitability within the structure of the new partner program, Jason Gallo, vice president of Partner Value Acceleration for Cisco, told CRN.
The estimator will let partners dial up and down the new “knobs” of Cisco 360, which will be Land, Adopt, Expand and Renew, to determine their profitability within the new partner structure, Gallo said.
"Historically, we had these four programs in particular that really stand out: VIP, Perform Plus, the Lifecycle Incentive and CSPP [Cisco Services Partner Program]. And as we go into the new structure, it brings those together into Land, Adopt, Expand and Renew. The estimator, which is against [the new Cisco Partner incentive structure], will allow you to dial up and down the expectations that the individual partner may have in terms of how much they’re landing in a certain portfolio, how much adoption will they be driving, which equates to certain incentives, how much expansion within a portfolio will they grow on top of a current customer base and recurring revenue, and then ultimately, the renewal," he said.
The Cisco Partner Incentive Estimator is now available for the tech giant’s partner-facing teams to use in conversations with their partners, according to Cisco. The tool will be available for partners’ use in August, six months ahead of the launch of Cisco 360.
Cisco 360’s New Value Index And Incentives
Cisco 360 is simplifying the company’s existing partner program structure down from 22 specializations and 15 business units to now focusing on six portfolios: networking; security; cloud and AI infrastructure; Splunk, collaboration; and services. Cisco last Friday released updated Value Index positions across all six portfolios. The Value Index, first revealed in October, will redefine and measure partners across four areas: foundational, capabilities, performance and engagement.
“That four-pillar approach of foundational, capabilities, performance and engagement really mirrors the conversation that we think our partner field teams could have with partners as they regularly think about their business: ‘What’s foundational to your business? What capabilities do you need? Who do you need to hire? How do you train them? What’s the performance level in terms of sales, and are you aligned with our sales teams?’ And then lastly, engagement: ‘What are our customers getting out of the products?’” Gallo said.
From there, Cisco will group partners into two new designations. The sought-after Cisco Gold partner designation is going away in the new program and in its place will be Cisco Partner and Cisco Preferred Partner. Cisco partners will be able to earn these designations for each portfolio, such as security or networking, the company said.
The new designations, which sparked controversy and concern with some existing Cisco Gold partners, was one of the biggest conversations for Cisco internally, said Gallo.
“Where we’ve landed is Cisco [portfolio] Partner, meaning whichever portfolio [such as networking, etc.] and then Cisco Preferred within that respective portfolio. We think that does a great job in really highlighting the depth of capabilities that the partner can bring within that area, focused on the customer and helping them to display that they’re a very invested and deeply capable partner in that particular portfolio,” he said.
Depending on the partner’s designation, certain benefits will then become available. Overall, Cisco 360 is doing away with separate partner benefits and incentives programs such as VIP, Perform Plus and CSPP. These will instead be folded into a single structure called Cisco Partner Incentive (CPI), which will launch in February 2026. CPI, said Cisco, will mirror the overall Value Index that will measure partners.
The new benefits and incentives, said Gallo, are a “critical pillar” of Cisco’s new partner strategy.
Before the launch of Cisco 360 in 2026, however, Cisco Services Partner Program payouts are being adjusted. Partners will continue to earn rebates for landing and renewing Cisco Success Tracks, but the company is retiring the Monthly Value Rebate component on July 27 ahead of the consolidated CPI structure rolling out. The VIP rates, which also reflect the shift in Cisco’s overall strategy, will be released in July, aligning with Cisco’s annual planning and end of fiscal year, Elisabeth De Dobbeleer, senior vice president, Cisco Partner Program, told CRN last month.
Cisco said that it’s not eliminating incentives, but instead “shifting incentives toward areas like technology innovation rooted in AI and security, software adoption, renewals, and deeper customer engagement that supports long-term growth.”
"I want to overemphasize what we’re doing is we’re taking VIP, CSPP [and] Perform Plus, and we’re bringing them together because, historically, they’ve had different timelines, different requirements and different payout rates. It was very confusing for partners in that they had to really manage the different timelines and requirements. This makes it a lot simpler, but it’s not going away. It’s really shifting," Gallo said.
The Partner Experience Platform, known as PXP, will house everything for partners, including CPI and the Partner Incentive Estimator, Gallo said.
Partner Concern Around Cisco 360
Cisco partners told CRN at Cisco Live 2025 last month that they were anxiously waiting for more details on compensation and how they will be measured within Cisco 360. Partners specifically voiced concerns about the departure of the Cisco Gold partner designation, as well as potential changes to incentives and rebates, which one partner executive called “crucial” to the financial health of many Cisco partners.
With those concerns in mind, Cisco “co-designed” the foundation of the new program in concert with its channel partners, De Dobbeleer told CRN last month.
“Our focus continues to remain clear: helping you achieve predictable and profitable growth,” De Dobbeleer said in her Wednesday blog post on the new Cisco 360 details. “The program is aligned to the traits that define today’s most successful partners.”
The “why” regarding Cisco 360 is because Cisco wants to create better business conversations for all of its global partners, Gallo said.
“I don’t think there’s any other company that would have done what we’re doing, which is to co-design a program with 15 months’ worth of discussion, debate and [partner] input. This isn’t about cost-cutting. … It’s genuinely about trying to simplify a program that we already feel was the best,” Gallo said. “This is more than a program change for us. This is a re-acknowledgement of the fact that we believe in partnering.”