As a response to changing market conditions, Cisco is increasing its recurring offerings. It reflects a concerted effort to keep up with customer demands, as more and more expect a variety of payment options to suit their needs.
But this might leave partners wondering whether their credit capacity could become an issue. With programs from Ingram Micro’s Financial Solutions, you don't have to worry.
speaks with two senior credit development managers at Ingram Micro, Joe Galster
and Damon Piccione
- Changes in customer requirements
- Helping partners with Cisco’s recurring offerings
- Advice on pursuing programs
Changes in customer requirements
Cisco has done an incredible job tuning into the changing needs of end customers. They’ve been at the forefront of a trend toward offering a recurring model to reseller partners who then pass it down to their end customers.
“The market is being driven by different metrics of consumption,” Joe says. “Rather than making an upfront purchase of a million dollars, partners are looking to stretch that out to have it be more affordable.”
Damon adds that it’s also helping partners.
“This type of recurring revenue helps our partners drive towards what I would call revenue certainty,” he says, “where they’re able to successfully build a structure where they can make reliable entries into their forecasts of deals being booked months, if not years in advance.”
In effect, it’s helping companies increase valuations.
Partners have brought up two main concerns with this new model.
- How do you solve for a completely different billing model?
- What is this going to do to the availability of my credit line with Ingram Micro?
Cisco has stepped up to the plate to help solve for the first issue. Their annuity structure helps partners structure the billing to be annual or monthly depending on what the end customer and reseller partners needs are.
For the second issue, Ingram Micro’s Financial Solutions has some options. Each deal is viewed through a unique lens.
“From there, we can craft individualized solutions,” Damon says, “whether that’s looking towards our direct express program, or using an escrow solution, or looking at putting that on open terms, or pulling in Cisco capital.”
In any case, the team can tailor it precisely to the needs of the customer.
Advice for pursuing a program
Your first step should be to engage an Ingram Micro sales representative to let them know that you have upcoming opportunities. The sooner you start the conversation the better.
The team will be able to walk you through the programs that fit your needs, and if those don’t exist, they can work with you to build a reseller-specific program that fits with your end user.
To learn more, visit Financial Solutions
and Cisco Virtual Learning