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The first step in understanding the business economics is to determine the type of cloud partner you strive
to become. The good news is that most Cloud Service Providers offer a low investment alternative to get
started.

Investment                                                  XaaS           XaaS           XaaS Resale is probably the
                                                          Resale       Whitelabel         most important model for most
                                                                                          Cisco Partners that are
                                                          10-15%*         20+%*           focused on traditional CPE
                                                                                          resell because:
            Referral/                                                 Margin Opportunity
             Agent                                                                        • Requires limited capital
                                                                                            investment
              3-5%*
                                                                                          • Establishes a recurring
                                                                                            revenue model

                                                                                          • Revenue and margin build up
                                                                                            over time

                                                                                          BUT, you must add value
                                                                                          through your own services
                                                                                          and/or by aggregating services

*Based on industry research and partner interviews. Some solution
providers state higher margin opportunities depending on the service
provider, the partner relationship and product offering.

© 2014 Cisco and/or its affiliates. All rights reserved.                                  Cisco Confidential              22
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