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Thursday, March 30, 2006

Cisco Partners Worried About Attach-Rate Changes

Cisco has informed partners that it will be implementing new policies, including adding low-end products to its maintenance attach-rate program. Partners are concerned they may lose margin if they don't meet the right quotas.

Cisco has been making a lot of changes including moving from a unit-based model to a dollar-based model, but that change went over well with partners since they were finally rewarded for selling more higher-dollar items.

According to one partner, Pat Scheckel, vice president of the Cisco practice at Berbee Information Networks: "If Cisco [excludes those products] everything will be fine. If they don’t, it’s going to cause us a lot of pain because we sell a lot of those, and people don’t want to buy maintenance on them."

Cisco plans on beginning the changes after the May meeting, so hopefully partners will get a clear answer then. Learn more about the changes in the complete article (link above).

Posted by Computer Consulting 101 Professional Kit