One tool Cisco partners can use to overcome customer budget objections and increase recurring revenue is Cisco Capital Financing, a Cisco subsidiary that enables partners to offer more flexible networking infrastructure software offers. Unlike a bank, Cisco Capital Financing is closely aligned with the Cisco technology teams and has a deeper understanding of the business IT sales pipeline. Consequently, it has low interest and other incentives customized for the channel, such as Open Pay, a more responsive way to acquire Cisco Unified Computing System (UCS) solutions and select converged-infrastructure storage solutions to meet both anticipated and unanticipated demand spikes.
Open Pay is unique in that it takes a metered approach to monitoring usage—a technical feat that represents the preferred way customers want to acquire converged infrastructure, storage, routing and switching solutions. Rather than investing large amounts of capital into data center technology that requires updating and prevents flexibility, organizations can now access the technology as needed.
Organizations can better align infrastructure costs to actual usage—saving time and money while increasing operating efficiency.
How Open Pay works
Customers enter into an agreement for the entire solution but pay a fixed charge for the committed portion only. Additional buffer capacity is provided for which customers are billed on a predetermined price-per-unit basis only if the buffer is used. Cisco monitors usage daily and the customer is billed on a quarterly basis.
Some of the key benefits of Open Pay include:
- Reduced up-front investment
- Flexible capacity to meet spikes in demand
- Improved capacity planning
- Pay-as-you-grow consumption capability.
Open Pay qualification requirements
For a Cisco deal to qualify for Open Pay, the following criteria must be met:
- Solution size:
- Minimum $500K for UCS only (including support services)
- $1 million for converged infrastructure (including support services)
- Product eligibility:
- MDS, B-Series UCS and select
- Vblock/FlexPod solutions
- Payment frequency: quarterly
- Availability: globally
Insight Enterprises is a Cisco partner and Cisco Capital customer that’s been an early adopter of Open Pay. According to Carlos Sotero, IT director at Insight Enterprises, “Previously, we did a procure and provision model with other technology providers, and that typically meant 60 to 90 days from the time a PO was cut until the infrastructure was on the floor. With the collaboration that we have with Cisco Capital, now we actually have capacity on demand on the floor with flexibility and agility to meet business requirements.”
With Open Pay’s variable consumption model, Insight was able to simultaneously:
- Reduce time to market from two-plus months to hours
- Improve budget predictability
- Drive a regular three-year technology refresh
“Open Pay from Cisco Capital has enabled Insight to provide both consumption (capacity on demand) and financial flexibility that’s missing in most private/hybrid cloud deployments,” says Sotero. “It enables us to have additional capacity already on the data center floor that can be provisioned within minutes and paid for with flexible terms.”
Want to learn more about how Open Pay can help increase flexibility for your customers’ technology infrastructure? Contact the Ingram Micro Cisco team at (800) 456-8000, ext. 76471.