No matter which vertical markets you’re selling into, you’re going to run up against budget objections. Even if you do a good job explaining how an enterprise-grade networking investment such as a Meraki firewall or Cisco Unified Computing System (UCS) is a viable business investment, your prospect may not have the budget for it right now.
Rather than stalling (or losing) the sale, check out the financing tools that Cisco and Ingram Micro have available for their partners. One resource 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 UCS solutions and select converged-infrastructure storage solutions to meet both anticipated and unanticipated demand spikes.
Open Pay takes a metered approach to monitoring usage—a technical feat that represents the preferred way many 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 upfront 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:
Ingram Micro XChange
- 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
The Ingram Micro XChange Program also was created to help partners overcome budget objections by enabling Cisco partners to earn discounts on qualifying Cisco gear ranging from 8–18%. The program was specifically designed for Cisco routing, switching, wireless and security deals, ranging from $5,000 to $50,000 per customer (up to $250,000 net total per partner per Cisco fiscal quarter), making it the perfect fit for small to midsize customers.
Partners can see the upfront discount for all qualifying Cisco migration products and services when accessing the Ingram Micro XChange Program application portal
. After confirming eligibility, partners can fill out and submit applications via a web-based, easy-to-use tool interface available on the portal. The program tool provides deal application information, deal approval and deal pricing. Incentives are applied on a one-to-one product trade-in basis. All Cisco registered or certified resale channel partners in good standing with Cisco and Ingram Micro are eligible to participate.
The compensation for the trade-in products comes in the form of a discount offered and applied to the new Cisco products ordered from Ingram Micro. More than just saving money, partners save time and hassle, as the streamlined process doesn’t require Cisco Commerce Workspace (CCW) deal registration, an RMA or a vendor product return. Simply submit deals through the XChange migration tool for approval, and Ingram Micro will provide the approved voucher number that must be submitted with each approved deal.
Partners who have existing deals with the Cisco Opportunity Incentive Program (OIP) should use the Cisco Technology Migration Program (TMP) to add trade-in value to the OIP deal. Cisco’s TMP, or OIP plus TMP, may provide greater discounts compared to Ingram Micro XChange. However, these Cisco programs require Cisco CCW deal registration and Cisco sales approval and may require product return.
To learn more about Open Pay, Ingram Micro Xchange or additional financing services, contact the Ingram Micro Cisco team at (800) 456-8000, ext. 76471.