Page 56 - Partner Business Transformation Workshop Refresh

Best-in-class solution providers offer choice to their
customers

According to research from The Channel Company/IPED, ideal “Partners of the Future” will sell on-premise as well as offer
managed and cloud based services. As a Cisco Partner, you will need to develop the appropriate balance for your business.

Partner Profile • A Cloud / Managed Service Provider is typically a VAR who has transitioned to add additional
managed or cloud services to its portfolio

• By Selling into the on-premise data center, hosting or reselling cloud services, these partners are
well positioned to meet customer needs

• The recurring revenue services offset the revenue/gross margin loss in the transition from one-time-
charge HW, SW to recurring revenue

Percent of Revenue from Managed / Cloud Services

IT infrastructure VARs 100% of Rev 50% of Rev Sweet spot ~50% of
who have added Managed/ from Managed/ from Managed/ revenues in Managed/
Cloud Services Cloud services
Cloud Services
<5% ~25%

Cloud Services

20% of Rev from
Managed/Cloud

Services
~75%

*The Channel Company/IPED perspective based on industry research and partner interviews.