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What's the Difference Between Cisco Services and a Warranty?

August 05, 2017

Cisco Services are a proven way to help your customers protect their businesses from unforeseen circumstances and provide expertise and support to help them get the most from their Cisco products.

But many of your customers are likely to already have a warranty on their Cisco products and will wonder what is the difference between that and Cisco Services. Some may even see the two options as essentially the same thing and question why they need both.

This is, of course, incorrect because Cisco Services differ greatly from warranties. To help you explain the differences to your customers so they can understand the value Cisco Servicesdrive, here are some key ways the two provide protection, albeit in different ways:

Warranties protect against defects. The primary purpose of warranties is to provide customers with protection from errors made in manufacturing. These cover both materials and workmanship and are created to ensure that the customer gets the working piece of equipment as purchased.

Support contracts go further by also protecting against human factors, such as configuration errors, protocol errors, and the like. These are beneficial because approximately 80 percent of network issues that your customers face will be because of human error.

Downtime. Warranties will not protect against problems caused through human error, and if your customers want assistance, they will have to pay additional charges. They also can suffer from their network being down, thus losing business in the process.

Network downtime costs businesses about 1 percent of their annual revenue. For a $50 million company, that’s a $500,000 loss each year that could be avoided. Downtime also hurts customer satisfaction because employees cannot work during those periods.

The cost of a services contract is typically paid for in what the company would lose with just a single outage. Anything beyond that is money the company saves. In fact, Forrester estimates that for every $1 a company spends on services, it receives $2.92 in value in return.

Length. Because warranties focus on manufacturing issues, the time that they are active is minimal compared with service contracts. Though warranties depend on the type of product purchased, they typically last 90 days. Once that period is over, the customer bears the responsibility to fix any and all problems that come up or pay an additional fee for service.

On the other hand, Cisco Services provide your customers with support for the length of the contract. Because many of our Cisco Services users renew their agreements each year, they now find themselves with continual support that is not presented in a warranty.

Under Cisco Services, if a piece of hardware does break, your customers will be entitled to faster delivery times and discounts on replacement parts, along with access to knowledgeable Cisco technicians who can assist in repairs. All of this helps ensure that your customers’ networks will be up and running as much as possible, and that any downtime will be minimal.

Although many customers believe a warranty will be enough coverage for their businesses, it covers only a small fraction of Cisco products. For customers that take their businesses seriously, Cisco Services is the best way to stay protected.