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CISCO SHARED SUPPORTLeading Services TransformationCISCOPartner Technical SupportServices PortfolioPhase I:Migration to Cisco SharedSupportPARTNERINTRODUCTORY KITLatin America

Partner Technical Services PortfolioPhase 1: Migration to Cisco Shared SupportLatin America Partner Introductory KitTable of ContentsPageIntroduction3Executive Summary4Partner Technical Support Services Portfolio8Cisco Shared SupportOverviewProgram ElementsEligibilityPerformance MetricsPricingDelivery1213142527Latin America Timeline and Related Activities29Note: This document will introduce Cisco’s new Partner Technical SupportServices Portfolio. The rollout of this portfolio will occur in two phases; the firstphase will focus on the migration from SIS98 to Cisco Shared Support programand the second phase will introduce a new Cisco Brand Resale program. Theintent of this document is to focus primarily on the first phase in order to aid to ourpartners in planning the migration to Cisco Shared Support.This document is subject to change and may not provide the level of detailthat you require. Please consult with your Channel Service Account Manager(CSAM) for additional details.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential2

Latin AmericaPartner Introductory KitDear Partner,Cisco Systems is pleased to introduce a new Partner Technical Support Service Portfoliofor Latin America. This portfolio will be launched in two phases: the first phase will consistof the migration from SIS98 to the Cisco Shared Support program and the second phasewill introduce a new Cisco Brand Resale program. The migration from SIS98 to CiscoShared Support will begin on July 31, 2005 while the new Cisco Brand Resale program willlaunch in April 2006.This document focuses primarily on the migration from SIS98 to Cisco Shared Support.Details on the new Cisco Brand Resale program will be communicated at a later date.In the coming weeks, we will be contacting you to schedule a meeting in which to formallypresent Cisco Shared Support, and begin discussions for your migration.Please review the enclosed information to familiarize yourself with the Cisco SharedSupport program prior to our meeting.In the meantime, please do not hesitate to contact your Channel Service Account Manager(CSAM), or send an email to [email protected] if you have anyqueries.We look forward to meeting with you soon.Sincerely,Cisco Shared Support TeamLatin AmericaCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential3

Executive SummaryThe Cisco Systems Partner Technical Support Services Portfolio is designed to provide qualifiedpartners who have invested in Cisco technology and resource skill development, with a supportinfrastructure to help differentiate their services in the increasingly competitive services market, whiledelivering high quality customer support.With the Partner Technical Support Services Portfolio, partners have access to Cisco technologyexperts, award-winning Web-based support tools, software support and updates, Cisco industryleadership, and much more.Portfolio OverviewThe Partner Technical Support Services Portfolio provides customers with a value-based offering andincreases customer loyalty and satisfaction through two separate programs described briefly below: Cisco Shared Support—A service program for Gold, Silver and select Premier System Integratorpartners that meet the high standards of the Cisco Shared Support eligibility requirements andongoing performance criteria, demonstrating their ability to sell, renew, and deliver high-qualityservice under their own brand.Cisco Shared Support is a channel program in which partners provide technical support services tocustomers. In the Cisco Shared Support model, partners remain the primary contact for theircustomers, selling and delivering their own brand of services while having access to Cisco technicalexpertise, software support, and logistics infrastructure. In addition to selling and delivering servicesunder their own brand, partners may also sell SMARTnet, SMARTnet Onsite, Software ApplicationSupport (SAS), Software Application Support plus Upgrades (SASU) and Cisco Services for IPSthrough the Cisco Brand Resale (CBR) Program. Cisco Brand Resale— A service program offered as a complement to Cisco Shared Supportthrough which partners can resell an assortment of Cisco brand services from both the TechnicalSupport Services and Advanced Services Portfolios. Cisco Brand Resale allows partners to expandtheir geographic reach and expand their service portfolios beyond networking devices to supportadvanced technologies solutions, and enables partners to provide their customers with supportservices without having to make significant investments in developing and operating their ownsupport infrastructure.This document will focus primarily on Cisco Shared Support. Details about Cisco Brand Resale willbe communicated at a later date.Partner Benefits of Cisco Shared Support Promotes and sustains partner differentiation through eligibility criteria and ongoing performancemetrics Rewards partners based on their performance against metrics May help partners improve cash flow, through an annuity-based fee structure, selective renewals,and logistics cost reduction Rewards partners with discount incentives based on their performance in selling services Supports partner ownership of the customer relationship, and helps increase customer satisfactionand loyalty Enables partners to reallocate resources to perform services more aligned with their company’s corecompetenciesValue of Cisco Shared SupportThe Cisco Shared Support program, with Cisco Brand Resale as a complement, enables Gold, Silver,and select Premier certified partners in Latin America to complement their unique services portfolioCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential4

and build on their core competencies by leveraging Cisco's technical expertise and parts logisticsinfrastructure to maximize profitability.Cisco Shared Support will help our partners to jointly transform the services marketplace into amutually prosperous marketplace in Latin America. Cisco Shared Support promotes growth in ourpartner's branded services business. Our partners will be able to achieve a better value propositionfor their customers and beat their competition through differentiated service price discounts, whichthey can obtain based on their performance delivering high quality services, achieving high customersatisfaction, and renewing and growing their own brand of services. Also, the program providesopportunities for operational and logistical cost savings by leveraging optional "parts to end-user" and4 hour parts delivery options.Cisco Shared Support is the catalyst for driving a cost cutting, undifferentiated services marketplace,towards an enhanced business model that rewards partners' performance and promotes revenuegrowth.Cisco Shared Support Program ElementsThere are four key elements that make the Cisco Shared Support program unique. The elements arediscussed in detail in the document and can be summarized as follows: Eligibility Performance Metrics Pricing DeliveryCisco Shared Support key program elementsCisco Shared Support Annuity-based contracts Full entitlement – 1st yearSelective renewal – 2nd year & ongoing Parts Delivery to partner or customerMultiple service options (where available):SDS, 8x5xNBD, 8x5x4, 24x7x4Priced off the ‘Global Price List Latin America Availability’Discount is driven by partner performancePerformance Metrics: Conversion Rate Renewal Rate Service Request Volume RMA Volume Post-sales Support Customer SatisfactionCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential5

Cisco Shared Support Eligibility RequirementsA strong set of eligibility requirements have been established for participation in the Cisco SharedSupport program. Eligibility is aligned with the channel certification programs.Cisco Shared Support eligibility requirements enable partner differentiation in the marketplace. Therequirements promote more efficient service delivery to customers as well as higher quality of supportthat helps increase customer satisfaction.Latin America partner Eligibility RequirementsLATIN AMERICAEntry and Year 1 Gold, Silver or select Premier channel certification8x5 local TAC capabilityOnline ordering and case managementTake the Partner Readiness AssessmentYear 2 and Ongoing Meet or exceed performance metrics thresholdsElectronic asset management system24x7 local TAC capabilityAvailabilityCisco Shared Support will be generally available on July 31st, 2005 in the following LatinAmerica countries: ArgentinaBoliviaBrazilChileColombiaCosta RicaEcuadorEl guayPeruPuerto Rico & CaribbeanUruguayVenezuelaCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential6

Partner ResponsibilitiesTo promote partner readiness and assist in the transition from SIS98 to Cisco Shared Support, Ciscowill assign a team of individuals to provide training and issue resolution during the transition.A successful implementation of Cisco Shared Support requires partner executive sponsorship.Each partner will need to assign a focal team to manage their own internal transition from SIS98 toCisco Shared Support. We recommend that each partner form this focal team with individuals fromthe following functional groups: Business operationsService operationsService salesPre-sales/post-sales supportPurchasingAccounts payablePartner deliveryThe focal team will be required at the initial meeting, as well as during all training workshop sessions.All partner functional areas should be represented at the training workshops.Additionally, the partner will need to assign a dedicated Project Manager to oversee the overalltransition to Cisco Shared Support, and act as the single point of contact for Cisco during themigration.Please contact your Channel Service Account Manager (CSAM) or send an email [email protected] for additional information.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential7

Partner Technical Support Services PortfolioThe Cisco Systems Partner Technical Support Services Portfolio is designed to provide qualifiedpartners who have invested in Cisco technology and resource skill development, with a supportinfrastructure to help differentiate their services in the increasingly competitive services market, whiledelivering high quality customer support.With the Partner Technical Support Services Portfolio, partners have access to Cisco technologyexperts, award-winning Web-based support tools, software support and updates, Cisco industryleadership, and much more.Portfolio OverviewThe programs offered to partners under the Partner Technical Support Services Portfolio in LatinAmerica are: Cisco Shared Support—A service program for Gold, Silver and select Premier System Integratorpartners that meet the high standards of the Cisco Shared Support eligibility requirements andongoing performance criteria, demonstrating their ability to sell, renew, and deliver high-qualityservice under their own brand.Cisco Shared Support is a channel program in which partners provide technical support services tocustomers. In the Cisco Shared Support model, partners remain the primary contact for theircustomers, selling and delivering their own brand of services while having access to Cisco technicalexpertise, software support, and logistics infrastructure. In addition to selling and delivering servicesunder their own brand, partners may also sell SMARTnet, SMARTnet Onsite, Software ApplicationSupport (SAS), Software Application Support plus Upgrades (SASU) and Cisco Services for IPSthrough the Cisco Brand Resale (CBR) Program. Cisco Brand Resale— A service program offered as a complement to Cisco Shared Supportthrough which partners can resell an assortment of Cisco brand services from both the TechnicalSupport Services and Advanced Services Portfolios. Cisco Brand Resale allows partners to expandtheir geographic reach and expand their service portfolios beyond networking devices to supportadvanced technologies solutions, and enables partners to provide their customers with supportservices without having to make significant investments in developing and operating their ownsupport infrastructure.Figure 1 illustrates the migration from SIS98 to both components of the Partner Technical SupportServices portfolio. In Latin America the migration to Cisco Shared Support will occur as a first phase.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential8

The new Partner Technical Support Services portfolio clearly recognizes partners’ skills andinvestment and rewards performance.Cisco Shared Support recognizes the partners’ investment in services by applying strong eligibilityrequirements and monitoring on-going performance. This enables more differentiation in themarketplace and helps improve both partner and Cisco profitability via cost reduction (discounts andlogistical costs).Cisco Shared Support partners may also use Cisco Brand Resale, based on their logistics geographicreach or leverage Cisco’s technological expertise in the introduction of new technologies. This allowspartners to expand their market share without engaging in delivering services.The purpose of introducing the new portfolio is to strengthen services awareness, develop value andoverall customer satisfaction through partners and simultaneously introduce Cisco’s brand of servicesas a valuable option.The new portfolio is designed to address the key concerns of the previous partner branded programs: Certain partners bundled SIS98 with products, essentially giving the service away and driving downits value, or “street price.” SIS98 did not require partners to meet eligibility requirements or performance metrics aroundservice coverage, service efficiency, or service quality. The result was a large field of partnerscompeting for customers, some undercutting others on price. Undercutting, combined with a lack ofaccountability for service delivery, caused customer satisfaction ratings for partner-delivered serviceto lag behind ratings for Cisco-delivered service.The Partner Technical Support Services portfolio is also designed to increase services maturity andvalue in the growth and emerging markets, as well as move partners to an annuity business versusthe previous model of a “one-time fee.” With the introduction of the Partner Technical SupportServices portfolio, Cisco is introducing choice into a market where services have been typicallyperceived as low value but highly priced.Portfolio Value to the Partner and CustomerThe Cisco Shared Support program, with Cisco Brand Resale as a complement, enables Gold, Silver,and select Premier certified partners to offer their unique service portfolio and build on their corecompetencies by leveraging Cisco’s technical expertise and parts logistics infrastructure to maximizeprofitability.Cisco Shared Support eliminates the one-time, up-front fee that partners paid under prior partnerbrand support programs to purchase services good for the life of a product. Instead, partners underCisco Shared Support must buy one year of services for each device they purchase from Cisco,helping to improve partner cash flow, and after that first full entitlement year, partners may choose torenew their support on select productsUnder Cisco Shared Support partners deliver their own brand of service and provide TechnicalAssistance Center (TAC) Level 1 support, TAC Level 2 support, and onsite support. The partnerdetermines to what extent they will leverage Cisco’s parts logistics infrastructure.Cisco Shared Support partners may choose to complement their portfolio of services by using CiscoBrand Resale to expand their geographic reach, provide advanced technology support oraccommodate customer preference.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential9

Table 1 below illustrates partner and Cisco deliverables under Cisco Shared Support andCisco Brand ResaleDeliverablesCisco Shared SupportService salesPartner provides to customerContract administrationPartner provides to customerContract renewals and upgradesPartner provides to customerTechnical Assistance Center (TAC) Levels I and II supportPartner provides to customerTAC Level III supportCisco provides to partnerCisco.com Cisco IOS Software maintenance, minor, and major releasesSoftware Application Support; two options: Standard offering: SAS—maintenance and minor releases Upsell offering: Software Application Support plusUpgrades (SASU)—maintenance, minor, and major releasesParts delivery*: two options: Standard offering: 8x5xSDS/NBD where available Upsell offering: 8x5x4, 24x7x4***Onsite hardware replacement*Cisco provides to partner,partner administers tocustomerCisco provides to partner,partner administers tocustomerCisco provides to partner,partner administers tocustomerCisco provides to partner orcustomer as indicated bypartner at time of purchasePartner provides tocustomer**Cisco BrandResalePartner providesto customerPartner providesto customerPartner providesto customerCisco providesto customerCisco providesto customerCisco providesto customerCisco providesto customerCisco providesto customerCisco providesto customerCisco providesto customer**** Parts shipment is either delivered by Cisco to the partner’s depot or by Cisco to the customer directly. For parts to end user,service levels may vary per country. Please confirm service level availability with your local Cisco Representative.** Partner can outsource Onsite Services and use Cisco Onsite Services (where available) in case emergency occurs. Partnerwould have to pay Time and Materials if partner leverages Cisco Onsite Services.***Where availableBenefits to the partnerThe Partner Technical Support Services portfolio offers partners the following benefits: Promotes and sustains partner differentiation through eligibility criteria and ongoing performancemetrics Rewards partners based on their performance against metrics May help partners improve cash flow through an annuity-based fee structure, selective renewals,and logistics cost reduction Recognizes the quality of service delivered by partners as reflected in customer satisfaction scoresand service performance, and rewards partners based on their performance Rewards partner with discount incentives based on their performance in selling services Supports partner ownership of the customer relationship Enables partners to reallocate resources to perform services more aligned with their company’score competencies Enables partners to utilize the Cisco parts-logistics infrastructure (where available) to supportspecific products or to expand geographical reachBenefits to the customerThe Partner Technical Support Services portfolio provides the following benefits to the end customer: One primary contact for a complete support solutionImproved network availability and reliabilityInvestment protection through software updates and upgradesEnhanced support for TAC and RMACisco Shared SupportLatin America – Partner Introductory KitCisco Confidential10

Improved contract and asset managementPortfolio entitlement models may help to improve partner cash flow and provide opportunities forprofitability. Eligibility requirements help to establish points of differentiation. Performance metricsmeasure and reward partner performance and investment. And the portfolio framework is aligned withpartner strategies and business models.The remainder of this document will focus solely on the Cisco Shared Support program whichis the first phase of the Partner Technical support services rollout. Details on the new CiscoBrand Resale program will be communicated to you at a later date.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential11

Cisco Shared SupportOverviewCisco Shared Support is part of the Cisco Partner Technical Support Services Portfolio. In LatinAmerica, it is a service program for Gold, Silver, and select Premier certified 1Tier partners that meetthe high standards of the Cisco Shared Support eligibility requirements and ongoing performancecriteria, demonstrating their ability to sell, renew, and deliver high-quality service under their ownbrand.Cisco Shared Support Program availabilityThe Cisco Shared Support program is available in the United States, Canada, Japan, Australia, NewZealand, and the following EMEA countries: Austria, Belgium, Denmark, Finland, France, Germany,Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, South Africa, Sweden,Switzerland, and United and Kingdom.In Latin America, Cisco Shared Support will be available in the followingcountries on July 31, 2005: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica,Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama,Paraguay, Peru, Puerto Rico & Caribbean, Uruguay, and Venezuela.By August 2005, the following APAC countries are targeted to be on Cisco Shared Support: China,Korea, Taiwan, Hong Kong, Singapore, Indonesia, Malaysia, India, Sri Lanka, Bangladesh, Thailand,Cambodia, Vietnam, Philippines, Mongolia, Laos, and Brunei.The program is targeted to be available to the following new EU entrant countries as of September2005: Cyprus, Czech Republic, Estonia, Hungary, Poland, Slovenia, Latvia, Lithuania, Malta, Slovakia,Iceland and Liechtenstein.What is the Cisco Shared Support Program Replacing?The Cisco Shared Support Program replaces the following partner-branded programs available inLatin America System Integrator Support (SISE/SIS98)Why was Cisco Shared Support Created? Eligibility requirements establish points of differentiation Performance metrics measure and reward performance and investment Differentiation in the marketplace helps improve profitabilityCisco Shared Support recognizes the partners’ investment in services by applying strong eligibilityrequirements and monitoring on-going performance. This enables more differentiation in themarketplace and helps improve both partner and Cisco profitability via cost reduction (discounts andlogistical costs).Value to the PartnerCisco Shared Support offers partners the following benefits: Recognizes the quality of service delivered by partners as reflected in customer satisfaction scoresand service performance, service sales, and rewards partners based on their performanceCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential12

Promotes and sustains partner differentiation through eligibility criteria and ongoing performancemetrics Enables partners to utilize the Cisco parts-logistics infrastructure to support specific products or toexpand geographical reach Provides partners with the opportunity to drive annual renewal of service sales and a higher marginservice business May help partners improve cash flow, through an annuity-based fee structure Drives more customer loyalty toward partners through increased customer satisfactionThe Cisco Shared Support program, with Cisco Brand Resale as a complement, enables Gold, Silver,and select Premier certified partners in Latin America to offer their unique service portfolio and buildon their core competencies by leveraging Cisco’s technical expertise and parts logistics infrastructureto maximize profitability.Cisco Shared Support eliminates the one-time, up-front fee that partners paid under prior partnerbrand support programs to purchase services good for the life of a product. Instead, partners underCisco Shared Support must buy one year of services for each device they purchase from Cisco,helping to improve partner cash flow, and after that first full entitlement year, partners may choose torenew their support on select products.Under Cisco Shared Support partners deliver their own brand of service and provide TechnicalAssistance Center (TAC) Level 1 support, TAC Level 2 support, and onsite support. The partnerdetermines to what extent they will leverage Cisco’s parts logistics infrastructure.Program ElementsWhat are the Program Elements of Cisco Shared Support?The four key elements of Cisco Shared Support are: Eligibility Performance Metrics Pricing DeliveryThe following sections will explain each program element in detail.EligibilityEligibility is a set of criteria used to evaluate and determine a partner's qualifications to participate inCisco Shared Support. This eligibility is aligned with the channel certification programs.A strong set of eligibility requirements for Cisco Shared Support helps enable partner differentiation inthe marketplace. The requirements promote more efficient service delivery to customers as well ashigher quality of support that helps increase customer satisfaction. Figure 2 illustrates the LatinAmerica partner Eligibility Requirements.Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential13

Figure 2 Latin America Eligibility RequirementsLATIN AMERICAEntry and Year 1 Gold, Silver or select Premier channel certification8x5 local TAC capabilityOnline ordering and case managementTake the Partner Readiness AssessmentYear 2 and Ongoing Meet or exceed performance metrics thresholdsElectronic asset management system24x7 local TAC capabilityCriteria to participate in Cisco Shared SupportTable 3 illustrates the criteria a partner in Latin America must meet in order to participate in CiscoShared Support.Table 3 Latin America Eligibility CriteriaCriteriaDetailChannel CertificationGold, Silver, or Premier Channel Certification.Partner ReadinessComplete the Partner Readiness Assessment (PRA).AssessmentTechnical Support Year 1: Provide customers with a minimum of 8x5 access to livetechnical support using a local access telephone number. Year 2 and ongoing: Provide customers with 24-hour access to livetechnical support using a local access telephone number. Providecall back from engineer within one hour.Online orderingElectronically order and renew service from Cisco using web-basedinfrastructuretools (ie: IPC, SCC) or XML.Electronic caseProvide electronic case management to customers.managementElectronic assetTrack Cisco installed base, including serial numbers, service levels,managementcustomer product location with automated asset management tools.Performance MetricsPerformance Recognition and MetricsCisco Shared Support is a performance-based program. The partner's performance is monitoredthrough a set of metrics that:Cisco Shared SupportLatin America – Partner Introductory KitCisco Confidential14

Reward partner performance and recognize partner investment Measure the partner's ability to manage case and Return Materials Authorization (RMA) volumesand meet or exceed customer expectations Measure the partner's ability to sell servicesThe partner will be measured on the following metrics:- Conversion rate- Renewal rate- Post-sales support customer Satisfaction- Service Request Volume (TAC case ratio)- RMA VolumeWhy Have Performance Metrics?Performance metrics are used to allow partners to differentiate themselves based on performance.Metrics performance determines the discount off of the Shared Support Service within the GlobalPrice List Latin America Availability list that a partner earns.The metrics help partners to sustain differentiation and motivates partners to provide consistent, highquality service to customers. To remain eligible for participation in Cisco Shared Support, partnersmust meet ongoing performance metric thresholds.How are Partners Measured?Partners are measured in three categories: service quality, service delivery, and service sales. Thetable below shows the metrics in each category and includes the definition of each one.Table 4 Measurement Categories and asures customer satisfaction as reported by the viceMeasures the total number of closed TAC cases during 12DeliveryService Requestmonth period compared to US SMARTnet Next Business DayVolumelist value in USD of the covered installed baseRMA VolumeMeasures the total RMA units shipments during a 12 monthperiod compared to the US SMARTnet Next Business Day listvalue in USD of the covered installed baseServiceConversion RateMeasures all converted support agreements as a percentageSalesof the total support opportunity under full entitlementRenewal RateMeasures the total US SMARTnet Next Business Day list valuein USD of renewals closed of a 1 year period compared to thetotal US SMARTnet Next Business Day list value at USD of theinstalled base available for renewalService QualityPost-Sales Customer SatisfactionCisco Shared SupportLatin America – Partner Introductory KitCisco Confidential15

DefinitionPost-sales customer satisfaction measures customer satisfaction as reported by the partner'scustomers.Customer satisfaction is a core value and is a driver for ongoing success of not only Cisco but also itspartners. Therefore, through use of a third-party customer satisfaction survey, Cisco will rewardpartners where they achieve high customer satisfaction results for particular (post-sales technicalsupport) aspects of the customer survey. The numerical result of the third-party survey is used in thisprogram to qualify for the program, and for a level of discount within the program.As part of the Cisco Shared Support Program, partners on the program are measured on their PostSales Customer Satisfaction score only and not the total customer satisfaction score for theirperformance in the area of customer satisfactionThe Post-Sales Customer Satisfaction metric measures the end customer's satisfaction with partnerbra

Partner Technical Support Services Portfolio The Cisco Systems Partner Technical Support Services Portfolio is designed to provide qualified partners who have invested in Cisco technology and resource skill development, with a support infrastructure to help differentiate their services in the increasingly competitive services market, while