Cisco Systems (CSCO) themed its 2013 Partner Summit in Boston, “Today, Tomorrow, Together,” as a representation of the company’s commitment to its channel partners, according to Cisco executives. Which means the company is acknowledging the new services-centric business landscape is tricky for everyone to navigate—including Cisco.
“Selling cloud and managed services is a new business model. If you move too quickly to a recurring revenue stream model, you will be greeted with cash flow challenges. If you move too slow, you’re out of the game. It’s all about timing,” said Edison Peres, Cisco’s senior vice president, Worldwide Channels. “We are committed to helping, but we are also going through this with you.”
Cisco is putting a major focus on services—as it has been for the better part of a year—as it recognizes the shift in IT spending from capex to opex and the growing popularity of as-a-service and hosted/managed models.