Solution Incentive Program

Channel Incentive Offerings

Solution Incentive Program Program Rules This program will expire on December 31, 2006. Cisco Systems® reserves the right to cancel or modify this program at any time without notice.

Program Objective The Cisco® Solution Incentive Program (SIP) rewards partners that include Cisco technology as part of their customer solutions. The program recognizes the partners’ efforts and expertise in developing the solution opportunity, the customer relationships they influence, and their ability to enlarge and accelerate Cisco opportunities. The Solution Incentive Program offers partners financial incentives and better engagement opportunities with Cisco sales teams. The program’s primary objectives are:








Grow incremental revenue in critical markets Boost partner profitability for resellers that integrate Cisco technology into their solution sale Increase the business relevance of networks Expand the need for network bandwidth Support the channel partner value model

How Does the Program Work? Partners must go through a one-time prequalification process to gain access to this program for each solution. Once partners are prequalified for their solution, they are eligible to register opportunities that meet program requirements, and receive incremental benefits and compensation for closing these opportunities. Figure 1 provides a diagram of the process. Figure 1: Cisco Solution Incentive Program Process

Deal Registration

Program Overview

(one per deal) Partner reviews Solution Incentive Program Website and discusses solution(s) with Cisco CAM. Presentation Program Rules Q&A User Guide Terms and Conditions

Prequalification (once per solution) Partner submits business plan. CAM and program team verify that prequalification requirements have been met.

Prequalified partners submit completed deal registrations to online tool at least 30 days before order. Approved registrations are valid for six months, and can be renewed.

Place Order The partner-approved registration will be awarded special pricing at the time the order is placed.

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Who Can Participate? This program is open to any partner that offers a solution meeting all of the following prequalification requirements listed in Table 1. Partners must submit a business plan for each applicable solution. A business plan template is available at www.cisco.com/go/ap/sip. In principle, each partner business solution should offer a unique business value to the endcustomer, and should specifically address a customer business priority or problem. In addition, business solutions should typically include Cisco advanced technologies, where applicable. Table 1: Cisco SIP Requirements Partner prequalification




Cisco Gold, Silver or Premier Certification




Cisco specialization in relevant advanced technologies, depending on the solution




Focused sales staff selling the solution (Minimum of 2 sales people for small and medium size business (SMB) solutions; Minimum of 5 sales people for enterprise solutions) *

Solution




Reference solution architecture that includes Cisco as the networking component




Business plan for selling the solution (template on SIP web site)




Solution forecast for Cisco hardware, software and services validated by Cisco account team




Solution is repeatable (i.e. at least references for two installed base examples within past 12

prequalification

months)


Solution sale is targeted at business decision makers as documented in the business plan (E.g, CXO and other senior business executives with budget control; not network or IT managers)




Solution includes one or more business-relevant non-Cisco applications that directly impact customer business function processes or productivity**




Solution expands the need for network bandwidth resulting in upgrade of core networking technology and/or re-engineers a manual business function to leverage networking technologies**




Solution includes all required end-customer planning, design, implementation and operation support services for both the network and applications components




Cisco products and services are no more than 70% of overall solution based on net value of the total solution.




Generates at least $200,000 in revenue (Cisco list price) in Cisco networking products for the SMB/commercial market or at least $1 million revenue (Cisco list price) in Cisco networking products for enterprise market per year*

* Enterprise customers have 500+ employees; SMB/commercial customers have fewer than 500 employees. ** Examples of business-relevant applications driving network bandwidth include healthcare medical records management, legal billing systems, airport video surveillance, supply chain inventory tracking, Examples of applications that would not qualify are email systems or network management software.

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Solutions Cisco will determine whether the solutions qualify based on the definitions provided below.

Solutions are vertical market solutions that integrate a proprietary application with the complete solution. Solutions receive the Solution Incentive Program rebate. For vertical market solutions, Cisco require additional third-party certification or registration for particular vertical markets. Examples of vertical solutions include healthcare picture archiving and communications systems, hotel management systems, and airport self-serving kiosks. Partners whose solutions are approved will be notified whether their solution qualifies. Deal Registration Process Once the partner solution has been approved, the partner must register each deal. Partners must meet the deal registration requirements outlined in Table 2 before they can obtain approval for deal protection and special pricing. All deals must be registered on the Cisco Deal Registration Approval Tool at http://www.cisco.com/go/deals. Table 2: SIP Deal Registration Requirements Deal registration


Partner must be prequalified for the Solution Incentive Program
Registration must be for partner-approved solutions only
Partner must be a Cisco Gold, Silver, or Premier Certified Partner in the United States
Incremental business generated by partner
Minimum amount of registered opportunity must be $20,000 at list price for Cisco products or services for SMB/Commercial deals, and $100,000 at list price for Cisco products and services for enterprise deals*
Partner must complete and document to Cisco the following presales milestones: Identify primary decision makers, available budget, and expected timing of opportunity Determine end-customer business issues and requirements Perform end-customer phone and face-to-face sales calls Provide high-level design to customer
Registration must be prior to an end customer RFP to be eligible * Enterprise customers have 500+ employees; SMB/commercial customers have fewer than 500 employees.

How to Use the Cisco SIP Partners must first validate that they meet the SIP prequalification criteria, submit their business plan, reference architecture and reference customers for each solution and receive prequalification approval. Once prequalified, partners may register deals to obtain approval for special pricing. This program is available through direct and 2-tier distribution orders. All purchases must be completed during the approved time frame to qualify for the discount.

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How to Validate Program Prequalification Partners should go to www.cisco.com/go/ap/sip for program information, including the program rules, presentation, question and answers, and user guide. After reviewing the documents, partners should submit their business plan with the required documentation to their CAM and the SIP alias: [email protected]. The CAM and program manager will validate whether the partner solution meets the prequalification requirements of the program. The program manager will notify the CAM and partner about the results of the partner solution business plan. Approved partners will be added to the Cisco internal partner solutions tracking system.

How to Submit Deals and Obtain Approvals All deals must be submitted by a Cisco Certified Partner and approved by the Cisco channel and sales account teams. Partners must submit deals using the Cisco Deal Registration Approval Tool at http://www.cisco.com/go/deals.
Qualified Cisco Certified Partners must meet all the program prequalification requirements before submitting a deal (requirements are outlined in Table 1)
The program is for incremental business only; the opportunity must be driven by the partner
Qualified Cisco Certified Partners must have met with customers before deal registration
Qualified Cisco Certified Partners must have completed preliminary design work for identified customers before registering the deal

Annual Evaluation Process Once a year, the program team will evaluate the partner solution and determine whether the solution continues to meet the program’s goals. Solutions that meet the minimum targets (see Table 3) will be approved for an additional year. Solutions that do not will be removed from the program. The partner may not reapply to the program for six months and must thoroughly justify how the solution sales will meet the program goals.

Table 3: Cisco SIP Annual Evaluation Requirements Annual evaluation


Booked at least $200,000 in revenue (Cisco list price) in Cisco networking products for the SMB/Commercial Market or at least $1 million revenue (Cisco list price) in Cisco networking products for enterprise market per year*
Achieved at least 70% of forecasted sales
Cisco products and services are no more than 70% of overall solution based on net value of the total solution. * Enterprise customers have 500+ employees; SMB/commercial customers have fewer than 500 employees.

Purchase Requirements and Limitations The following requirements apply to all purchased made through the Cisco SIP: A. B.

Customers may purchase the Cisco equipment specified herein using this program only during the approved time frame This promotion may not be used in combination with any other Cisco promotions, programs, or bundles unless otherwise authorized by Cisco.

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C.

Customer pricing may be given only by the qualified Cisco Certified Partner. No end-customer price is “suggested.” At all times the reseller is free to determine its minimum resale prices unilaterally.

D.

No exceptions will be given to Cisco SIP participants.

E.

All deals must be registered by the partner using the Cisco Deal Registration Approval Tool at http://www.cisco.com/go/deals.

F.

Deals over $1,000,000 Cisco list price for products and services will be subject to additional review based on the same program criteria by the Cisco sales management team.

G. The Program will be available directly through the Cisco Ordering Tool and indirectly through Cisco Asia Pacific Authorized Distributors. H.

Opportunities that have been previously registered and approved under the Opportunity Incentive Program are not eligible for registration under the Solution Incentive Program.

I.

The program is available only to Cisco Certified Partners. Please check with your CAMs for more details. Cisco reserves the right to cancel or modify this program at any time without notice.

Terms and Conditions
Offer cannot be combined with Premier, Silver, or Gold Certified Partner discounts.
Offer cannot be combined/stacked with any other promotions or discounts or credits offered by Cisco, unless specifically authorized in writing by the Cisco price deviation team before the order is placed. Note: The Cisco Technology Migration Program cannot be combined with the Cisco Solution Incentive Program.
No claims will be valid for POS sold 60 days after the registered deal approval period expires.
Cisco reserves the right to change any aspect of this promotion at any time.
Cisco Authorized Distributor to honor valid quotes placed during the promotion for a maximum of 30 days after promotion ends.
There are no return privileges on these products.
Partner must abide by the rules of the program as defined here and in the program rules.
Partner solutions targeted at both the SMB/commercial and enterprise markets must meet the minimum requirements for enterprise focused solutions.
All requests are subject to review and verification of information before approval for ordering.
Partner must document and submit all registration information required by the online registration form and program rules.
Partner must meet all specified qualification criteria to register an opportunity.
Partner must be in good standing with the Cisco Channel Partner Program in order to participate.
By submitting a registration the partner certifies that: The customer identified is a valid end-customer All pre-sales milestones identified in the registration have been performed by the partner
Partner certifies that the amount purchased from the distributor will not exceed that purchased by the end-customer for the specific registered opportunity.
Discount will apply only to products ordered within the approved deal registration timeframe.
Partner agrees to audit end-customer purchase orders when requested by Cisco; Cisco may contact the end-customer designated in the registration at its discretion.
Any partner company that violates the program rules will be ineligible to register for future opportunities, and will forfeit any pending registered opportunities. Cisco reserves the right to recover fees from fraudulent registrations and to expel the partner from the Cisco Channel Partner Program.

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Cisco will determine at its sole discretion whether any opportunity meets the stated criteria for approval.
A specific opportunity may be approved for one (1) partner. If multiple partners attempt to register the same opportunity, the first to complete and validate the registration will be accepted. Cisco reserves the right to assign a deal to the reseller of its choice in the case that it is not clear which reseller did the required work first or in the case the first reseller to register is determined to be not qualified to complete a successful installation..
The opportunity submitted must meet or exceed the minimum $20,000 revenue at Cisco list price for the qualifying products and services for SMB/commercial deals and the minimum $100,000 revenue at Cisco list price for the qualifying products and services for enterprise deals.
Opportunities approved by Cisco will be valid for a maximum of six months from the date of approval or the time duration specified in the respective program offering, whichever is shorter.
By submitting a registration and participating in the program, the partner certifies that it will comply with all laws, licenses, permits, and approvals required by any applicable government entity, including without limitation any anti-bribery, conflict of interest, or procurement laws or regulations, of any government or other competent authority where the products are to be sold or used (collectively “Applicable Laws”). Partner will indemnify and hold harmless Cisco for any violation by partner of any applicable laws.
Partner agrees to lead with Cisco solutions and sell Cisco products to the end-customer for any registered and approved opportunity.

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