A Fan Of The Channel
Cisco does more than 85 percent of its business through the channel, so it’s only fitting that Chief Financial Officer Scott Herren, who joined the company last December, is “biased” toward partners.
The tech giant wants to move from high-end switching and routing provider to a top software player in the eyes of the industry. The channel is Cisco’s biggest route to market and they’re already helping the tech giant make the transformation. Cisco finished its 2020 fiscal year with software accounting for 29 percent of revenues. Subscription revenue during the same period represented 74 percent of software revenues, Cisco revealed during its 2021 Investor Day last week. And it’s Cisco partners that are bringing in nearly 90 percent of the company’s overall bookings and driving most of the recurring subscriptions.
Herren met with CRN following Investor Day to talk about the critical role partners are playing in the company’s transformation. Herren talked about what partners can expect from Cisco’s enterprise agreements that are being re-worked and the company’s revamp of its product categories. He also shared his personal “affinity” for the channel and how important partners will be in helping to drive consumption-based IT and subscriptions for the San Jose, Calif.-based company.
Here’s what Herren had to say.