Cisco just rolled out a new points-based partner program. I know many vendors, pundits and channel execs are going to talking about how this is the new model. (I have already seen many column inches about it in the last two months).
Here’s the thing, Cisco has very few peers when it comes to their partner program. Microsoft is really the only one that is comparable. HPE thinks it is, but with all their M&A, the program is too confusing to keep up with. Dell has gone through a period of getting rid of its M&A assets. VMWare is a mess.
The main reason Cisco and Microsoft can make these big changes is because their certifications are a billion dollar industry — and yours isn’t!
They have Brand. They create demand. They create business for their partners. More than 80% of their business comes from partners. They like their channel.
It is interesting because MSP M&A is not just heating up, it is an inferno of investor dollars. Yet the number of MSPs has actually shrunk from a high of 62K to about 44K now. While 85% of that 44K are too small to be involved in M&A. (I talk to investors often; they all want the MSPs in the $10-20M range in revenue and $2M in EBIDTA.)
At the same time that hundreds of vendors are looking to the channel, MSPs are stretched thin due to the share width of the IT space – from print to mobility to cybersec to managed services. For an MSP with 10 employees, that will be too much. It also doesn’t leave room for a dedicated sales rep.
All the more reason that the MSPs and VARs – especially the smaller ones – will embrace this, since they need to get points to maintain status, support and discounts!
I know smaller service providers (vendors) ($5M – 40M) are going to be looking to change their program too. DON’T.
Unless you provide leads to your partners, the change will not help you. In 2024, reports indicated an average of over $6 to $9 in partner value for every $1 of Microsoft revenue, depending on the specific study. Do you make your partners $120 for every UCaaS seat sold?
Most of your issues with your partner program are foundational: no marketing, no strategy, no focus, no brand, no demand.
The biggest part of Cisco’s partner program is the certifications. And those certs are portable. And those certs are recognized by Buyers. It is a billion dollar industry, yet Cisco certification holders make an average of $94,840 a year!
Partners are invested in the Cisco program. Their business revolves around it. They are Cisco first. It is similar with Microsoft partners. TAs and other programs can work that way but usually do not.