Interview: Cisco looks to channel for new business models

Cisco Systems is looking to adapt its channel programs over the coming financial year to better serve those resellers offering infrastructure or software "as a service".

Les Williamson, A/NZ vice president at Cisco Systems, said traditionally, Cisco "didn't play a leading role" in creating opportunities for its channel partners to evolve into outsourcing or managed service providers.

He believes this financial year will see infrastructure-as-a-service and other cloud computing models take a hold of the marketplace.

There is far more "willingness" on the part of customers to take on the "operational expense needed to consume a managed service," he said.

"I believe that model is going to play out over the next 12 to 24 months."

Cisco and its channel partners will need to "continually evolve our business models with each other so that we become more relevant to [the customer's] business," Williamson said.

"If more of the channel is getting into the outsourcing and managed services business, I need to evolve my business model with them so that it is not just about fulfilment, but it's about x as a service." 

Williamson said that "on the numbers", the Cisco partners leading the charge into this space include IBM, Dimension Data, Telstra and Optus (Alphawest), UXC Getronics and NetStar.

"The channel is in a healthy spot - I think they have evolved their business models to a nice mix," he said.

To prepare for these changes, Cisco has also organised some resources internally to specifically target telcos, utilities and media companies, Williamson said.

"It's a grouping of what I believe are current and future business models that will happen in the A/NZ marketplace, that I believe will offer a unique proposition," he said.

"We have a big focus on Telstra and I have a dedicated team looking at that. Basically everyone else in the [telco] sector, plus utilities plus the media - we're looking at advanced unique business models they are taking to the market."

Williamson said utility companies have a role to play in the roll out of smart grids, while second-tier telcos like iiNet and Internode are offering more and more video content, becoming more like media companies.

See Part One of CRN's interview with Les Williamson here.