Cisco Value Incentive Program 31 - Partnership. Rewards. Results.

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Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Partnership. Rewards. Results.
Drive Profitability with Cisco Channel Partner Programs

Cisco Value Incentive Program 31
© 2018 Cisco and/or its affiliates. All rights reserved. This document is Cisco Confidential. For Channel Partner use only. Not for public distribution.
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          Overview
Overview                  WHAT IS THE CISCO VALUE INCENTIVE PROGRAM?
                          The Cisco® Value Incentive Program (VIP) is Cisco’s most popular and longest-running channel incentive program. It increases margins and differentiates
Track Highlights          partners who promote the adoption of targeted Cisco architectures within a six-month period. For more than 15 years, VIP has helped you sell Cisco
                          architectures more profitably. Billions of dollars in rebates have been claimed by partners like you. The 31st consecutive Cisco VIP period (VIP 31) begins
Architecture track        January 28, 2018.

  Enterprise Networks

  Security

  Data Center
                                                               Architecture track                                                          New Business track
  Collaboration

  Service Provider
  Technology                                                                                                                                                                  Meraki

New Business track
                                    Enterprise         Security        Data Center       Collaboration      Service    Enterprise   Collaboration   Security   Data Center   Meraki®
  Enterprise Networks               Networks                                                               Provider    Networks       Annuity       Annuity      Annuity
  Annuity                                                                                                 Technology    Annuity

  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          WHAT’S NEW IN VIP 31?                                                               •   Don’t miss out on these great opportunities. Review further details in
                                                                                                                  this Selling Guide and also in the VIP presentation and rules at
                            •   New rewards have been added to VIP in the last couple of program
                                                                                                                  www.cisco.com/go/vip. All partners wanting to participate must actively
Overview                        periods. You can now be compensated for desired behaviors and
                                                                                                                  enroll in VIP 31. There is no automatic enrollment.
                                significantly increase your VIP payouts through the Activation bonus,
                                Migration bonus, and Account Breakaway bonus. Your profitability can          •   Take advantage of other Cisco partner ecosystem incentive programs:
Track Highlights                                                                                                  VIP is part of a large portfolio of channel incentives that include partner
                                increase if you not only sell but also activate eligible software, migrate
                                customers to the latest solutions, and sell into new or dormant                   deal incentives—registration discount programs plus time-sensitive
Architecture track                                                                                                architecture promotions—that can be used in combination to recognize
                                accounts.
                                                                                                                  the value that you bring to customers.
  Enterprise Networks       •   The Activation bonus pilot is expanding to the Data Center Annuity
                                subtrack with the addition of Cisco Intersight™. Furthermore, activation
  Security                      monitoring based on telemetry is being piloted, paving the way for the
                                future and simplifying the incentive for partners. No validation via Proof-
  Data Center                   of-Performance (POP) submissions will be needed for Cisco Intersight
                                Activation bonus payments.
  Collaboration
                            •   New annuity offers have been added and are now VIP eligible in the
  Service Provider              Annuity subtracks. Continue to earn simplified and more rewarding
  Technology                    incentives for recurring revenue business, placed on the Annuity
                                platform in Cisco Commerce Workspace (CCW).
New Business track          •   Following the Partner Summit announcement, select Advanced
                                specializations are also being retired from VIP. Partners holding
  Enterprise Networks           impacted specializations have until July 28, 2018, to transition to
  Annuity                       appropriate Advanced Architecture specializations in order to meet VIP
                                31 specialization requirements for payout.
  Collaboration Annuity
                            •   To simplify the program, the PSS SW bonus pilot and Cisco Cloud and
  Security Annuity              Managed Services Program (CMSP) Express designation have been
                                retired from VIP as of the end of VIP 30.
  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          Track Highlights
Overview                     Architecture track
Track Highlights             Enterprise Networks
                             •   The entirely new era of networking. The Network. Intuitive.
Architecture track
                             •   Cisco Digital Network Architecture (Cisco DNA™) is a unified, intent-based networking architecture that delivers advanced solutions for any enterprise
                                 networking requirement.
  Enterprise Networks
                             •   Sell 40 Gigabit Ethernet, 100 Gigabit Ethernet, and Multigigabit switches and the latest Cisco Catalyst® supervisors, 4400 Series ISRs, and wireless
  Security                       802.11ac Wave 2 solutions to capture the highest Enterprise Networks VIP hardware rebates.
                             •   Sell Cisco ONE into existing networks to achieve the highest software payouts.
  Data Center
                             •   The Account Breakaway bonus and Migration bonus each provide an additional 2% rebate.
  Collaboration              •   Take advantage of the VIP Activation incentive to earn an additional rebate of up to 17%.

  Service Provider           Security
  Technology                 •   Introducing Security Account Breakaway and the opportunity to earn an additional 2% VIP rebate on up to seven new security domains.
New Business track           •   Migration bonus offers an additional 2% VIP rebate.
                             •   With the new Multiyear Enterprise License Agreement (ELA) bonus, earn an 8% rebate on multiyear ELAs, as opposed to 4 or 5% for other software
  Enterprise Networks            licenses.
  Annuity                    •   Promote innovation and next-generation security solutions, including Cisco FirePOWER Services on ASA, Cisco Firepower™ Threat Defense,
                                 Advanced Malware Protection (AMP) Everywhere, and Threat Grid.
  Collaboration Annuity
                             •   Focus on integrated threat defense for protection across the entire attack continuum – before, during, and after an attack.
  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          Track Highlights
Overview                    Architecture track
Track Highlights            Data Center
                            •   Earn highest rebates by leading the data center switching transition with the future-ready Cisco® Application Centric Infrastructure (Cisco ACI™)
Architecture track              solution, with its purpose-built, open, programmable software-defined networking (SDN).
                            •   Maximize the rebate with the high-volume Cisco Nexus® 9000 Series Switches, delivering ideal price and performance with multispeed
  Enterprise Networks
                                (10/25/40/50/100G) ports ready for Cisco ACI and Cisco Tetration Analytics™.
  Security                  •   Sell Cisco Unified Computing System™ (Cisco UCS®) SmartPlay bundles for best customer bundle pricing, and earn predictable VIP rebates on all
                                UCS SKUs (except CPUs).
  Data Center
                            •   Lead hyperconverged infrastructure business with the Cisco HyperFlex™ platform.
  Collaboration             •   Use the Account Breakaway or Migration Incentive Program to boost your data center VIP rebates by 40 to 100%.
                            •   Win new business with Cisco Tetration Analytics solutions. Engage security stakeholders with always-on, real-time network and security-analytics.
  Service Provider
  Technology                Collaboration and Collaboration Annuity
                            • Sell across the Cisco collaboration solutions with the flexibility of offering CapEx or OpEx consumption models and perpetual or subscription license
New Business track            models.
  Enterprise Networks       • Focus on the full customer lifecycle—land, adopt, expand, and renew—to help customers realize value, earn trust, simplify renewals, and continue to
  Annuity                     expand the customer relationship and your profitability.
                            • Lead every sale with the next-generation meetings experience that only our hybrid portfolio strategy can enable. Make sure customers understand
  Collaboration Annuity       the productivity and innovation they can enjoy through Cisco Spark™ Meetings, Messaging, and Calling; Cisco’s award-winning endpoints; and the
                              ability to connect it all to existing on-premises investments. Extend the value and further differentiate yourself by using Cisco Spark for developers to
  Security Annuity            integrate collaboration into customer business processes.
  Data Center Annuity       • Promote the power of the full collaboration portfolio with Cisco Spark Flex Plan, a user-based subscription offer for Messaging, Meetings, and Calling
                              with cloud, on-premises, and hybrid deployment flexibility.
  Meraki                    • Use the growing roster of subscription offers to achieve recurring revenue growth and earn Annuity payouts with cloud collaboration offerings, Cisco
                              Spark Board, Cisco Spark Flex Plan, Cisco Business Edition 4000 (BE4000), and Endpoints as a Service on the Annuity platform.
                            • Deliver next-generation advanced video and voice collaboration endpoints with the Cisco IP Phone 8800 Series and video endpoints such as the
                              Cisco DX series, Cisco Spark Room 55 and 70 room endpoints, and Cisco Spark Room Kit and Room Kit Plus.
                            • Help your customers stay ahead of the competition by refreshing their infrastructure and earn an additional 2% rebate in the Migration bonus.
                          © 2018 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          Track Highlights
Overview                     Architecture track
Track Highlights             Service Provider Technology
                             •   Continue to drive focus and attention on the Cisco® routing portfolio and its best-in-class routing software and automation so that service providers
Architecture track               get more agility to innovate as well as the ability to deliver better network quality.
                             •   Migration bonus provides an additional 2% VIP rebate for migrating your customers to new technologies and returning their old equipment.
  Enterprise Networks
                             •   Encourage adoption of the Cisco ASR 9000 Series using Tomahawk line cards, either by migration from the 7600 or in greenfield opportunities.
  Security                   •   Position the Cisco Network Convergence System (NCS) 4200 Series, which uses the latest circuit emulation (CEM) technology to help our customers
                                 in the time division multiplexing–to-IP (TDM2IP) migration while continuing to maintain their existing revenue streams.
  Data Center
                             •   Capture the optical market with our optical portfolio using our NCS 2000 Series for dense wavelength division (DWDM) transition and NCS 1000
  Collaboration                  Series for data center interconnect (DCI).
                             •   Use our NCS 5500 Series, designed to efficiently scale between data centers and large enterprise, web, and service provider WAN and aggregation
  Service Provider               networks.
  Technology

New Business track
  Enterprise Networks
  Annuity

  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31 - Partnership. Rewards. Results.
Cisco Value Incentive Program 31
                          Track Highlights
Overview                     New Business track
Track Highlights             Enterprise Networks Annuity
                             •   Rewards growth, renewals, and monthly recurring revenue of Cisco ONE™ Enterprise Agreements ordered on the Annuity platform in Cisco
Architecture track               Commerce Workspace (CCW).
  Enterprise Networks        Collaboration Annuity

  Security                   •   See the Collaboration and Collaboration Annuity section within the Architecture track for details.

  Data Center                Security Annuity

  Collaboration              •   Rewards growth, renewals, and monthly recurring revenue of the Cisco Umbrella, Cisco Cloudlock, and Cisco Stealthwatch Cloud offers, our Security
                                 Annuity offerings.
  Service Provider
                             Data Center Annuity
  Technology
                             •   Rewards growth, renewals, and monthly recurring revenue of Cisco ONE™ Enterprise Agreements, and of newly added Cisco Tetration Analytics
New Business track               software and Cisco Intersight™ software subscriptions ordered on the Annuity platform in Cisco Commerce Workspace (CCW)
                             •   Take advantage of the Telemetry based Activation bonus being piloted for Cisco Intersight
  Enterprise Networks
  Annuity                    Meraki

  Collaboration Annuity      •   Achieve even more profitability by selling more of the Cisco Meraki stack.
                             •   Win in performance-critical campus environments with 802.11ac Wave 2 access points and stackable, Multigigabit, and fiber aggregation switches.
  Security Annuity           •   Capitalize on the overall growth in the SD-WAN market while continuing to take advantage of the security and ease of use of the Meraki MX family.
  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Architecture track
Overview                  ENTERPRISE NETWORKS                                                                  • Activation bonus: Activate the key software within Cisco ONE
                                                                                                                 Advantage and Cisco DNA Advantage products in a production network
                          The Network. Intuitive. Built on Cisco DNA
Track Highlights                                                                                                 to add a 17% incremental rebate. The three piloted pieces of software
                          Cisco Digital Network Architecture (Cisco DNA) delivers intent-based                   are Cisco DNA Center™, Identity Services Engine (ISE), and
Architecture track        networking solutions that turn network traffic data into actionable insights. It       Stealthwatch®. The software activation needs to be validated via Proof-
                          helps customers make business decisions more quickly, mitigate more                    of-Performance (POP) submitted for review. You will have until April 27,
  Enterprise Networks     security threats, and manage the unprecedented scale of connected                      2019, to activate the software and provide the POP (6 months at
                          devices and services more easily.                                                      minimum). Earn up to three times as much in VIP payments on eligible
  Security                  •   Migration bonus: Help your customers stay ahead of the competition               SKUs.
                                by refreshing their infrastructure and returning the old equipment using     For success in the Enterprise Networks subtrack:
  Data Center
                                the Migration Incentive Program (MIP), www.cisco.com/go/mip. Qualify           •   Lead with Cisco Advantage software or Cisco Enterprise Agreement
  Collaboration                 for a significant upfront discount and also an additional 2% VIP rebate.           Suites for Cisco ONE Software.
                                Take advantage of this program to accelerate your customers’ journey
                                                                                                               •   Position Cisco ONE upgrades or add-ons into existing networks to earn
  Service Provider              to Cisco DNA and increase your profitability.
                                                                                                                   the highest rebate levels.
  Technology                •   EN Account Breakaway bonus: Acquire new accounts and reactivate
                                                                                                               •   Sell Cisco Catalyst 40 or 100 Gigabit Ethernet or Multigigabit switches
                                existing accounts using the EN Account Breakaway program, offering
New Business track              significantly higher upfront discounts and a 2% additional VIP bonus. For
                                                                                                                   and the latest supervisors.
                                more information, visit www.cisco.com/go/ab.                                   •   Position Cisco 802.11ac Wave 2 wireless solutions to earn higher
  Enterprise Networks                                                                                              rebate levels.
                            •   Gold Certified or CMSP Master bonus: Cisco Gold Certified or Cloud
  Annuity                                                                                                          Sell 4400 Series ISRs over the 4300 Series models.
                                and Managed Services (CMSP) Master Partners have the opportunity to            •

  Collaboration Annuity         receive an additional 1% bonus on SKUs in the 6% and 8% rebate                 •   When selling the Cisco ASR 1000 Series, sell models that offer greater
                                category.                                                                          than 40 Gigabit Ethernet.
  Security Annuity          •   Build a Cisco software practice: Cisco’s software strategy focuses on          •   When selling the Cisco 800 Series ISRs, sell 4G LTE-ready solutions to
                                enabling customer transformation, harnessing new growth                            earn a VIP rebate.
  Data Center Annuity           opportunities, and providing greater agility through software. Build a
                                Cisco software practice to realize larger deals, achieve faster hardware       8%                 2%             Up to 17%              1%              Up to
  Meraki
                                refresh, and increase recurring revenue. Sell Cisco ONE software into
                                new or existing networks to receive the higher VIP rebates.
                                                                                                              Base        +    Migration    +    Activation     +       Gold     =     28% VIP
                                                                                                             rebate             bonus              bonus               bonus            rebate

                                                                                                                                    See also details of the Enterprise Networks Annuity subtrack
                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential                                                                in the New Business track.
Cisco Value Incentive Program 31
                          All Advanced Core and WAN Services specialized and/or Advanced                                                                                  VIP 30       VIP 31
                                                                                                                    Offer
                          Unified Access specialized partners must have the Advanced Enterprise                                                                           rebate       rebate
Overview                  Networks Architecture Specialization on July 28, 2018 to meet the VIP 31                  Routing
                          specialization requirement for payout.
Track Highlights                                                                                                    1100 Series ISRs                                        4%          4%
                          Rebate summary table                                                                      4200 Series ISRs                                        4%          4%
Architecture track
                                                                                                  VIP 30   VIP 31   4300 Series ISRs                                        4%          4%
                          Offer
  Enterprise Networks                                                                             rebate   rebate
                                                                                                                    4400 Series ISRs                                        6%          6%
                          Cisco Catalyst switching
  Security                                                                                                          ASR 1000 Series                                         2%          2%
                          Cisco Catalyst 2000, 3000, or 4000 platform modular                       2%      2%
  Data Center             chassis, 1 Gigabit Ethernet                                                               ASR 1000 Series, greater than 40 Gigabit Ethernet       4%          4%

                          Cisco Catalyst 9300 Series 1 Gigabit Ethernet                             2%      2%      Wide Area Application Services (WAAS)                   4%          4%
  Collaboration
                          Cisco Catalyst 9400 Series 1 Gigabit Ethernet and chassis                 2%      4%      800 Series (4G Ready), 4G LTE WWAN card,                2%          2%
  Service Provider                                                                                                  Cisco UCS® E-Series Servers
  Technology              Cisco Catalyst 2960-X and 2960-XR, 10 Gigabit Ethernet                    2%      2%
                                                                                                                    Software licensing
                          Cisco Catalyst 3000, 4000, or 9000 platform, Multigigabit,                6%      6%
New Business track        40 or 100 Gigabit Ethernet                                                                                                                        6%          6%
                                                                                                                    Cisco Advantage Software, 3 years
  Enterprise Networks     Cisco Catalyst 4000, 6000, or 9000 platform, 10 Gigabit                   4%      4%                                                              6%          8%
                                                                                                                    Cisco Advantage Software, 3 years,
  Annuity                 Ethernet
                                                                                                                    upgrade/add-on
                          Cisco Catalyst 3000 Series, 10 Gigabit Ethernet                           4%      4%
  Collaboration Annuity                                                                                             Cisco Advantage Software, 5 or 7 years                  8%          6%
                          Cisco Catalyst latest-generation supervisors                              4%      4%
  Security Annuity        (4500 Series: 8-E, L-E; 6000 Series: 6T)                                                  Cisco Advantage Software, 5 or 7 years,                 6%          8%
                                                                                                                    upgrade/add-on
  Data Center Annuity     Wireless
                                                                                                                    Cisco Essential Software                                4%          4%
                          802.11ac Wave 1 Aironet® 2700 or 3700 Series                              2%      2%
  Meraki
                          802.11ac Wave 2, Aironet 1800, 1560, or 1540 Series                       4%      4%      Cisco ONE Perpetual                                     4%          4%

                          802.11ac Wave 2, Aironet 2800 or 3800 Series                              6%      6%
                                                                                                                    For a complete list and details, go to www.cisco.com/go/vipskus.
                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Architecture track
Overview                  SECURITY                                                                             •   IMPORTANT: New in VIP 31 is a 3% bonus for multiyear ELAs, bringing
                                                                                                                   your Multiyear ELA rebate to 8% (5% + 3%).
                          Don’t just sell products. Sell security business value and profit from an
Track Highlights          ongoing security relationship with your customers.                                   •   The Security Annuity subtrack rewards you for your focus on driving
                                                                                                                   recurring revenue in cloud security. Get rewarded not only for landing
Architecture track        Security is a top concern for customers of every size, in every industry. It’s           software subscriptions, but also for expanding and renewing them to
                          also a top market opportunity for you, with the total addressable market                 further enhance your profitability. See Security Annuity in the New
  Enterprise Networks     expected to reach $106 billion in 2018, with over half of that opportunity in            Business track for more details. There are no rebate changes for this
                          high-margin services and recurring revenue. Security is a strategic                      track in VIP 31.
  Security                conversation that can include IT, OT, and line-of-business buyers with
                                                                                                               •   Help your customers stay ahead of the competition by refreshing their
                          access to more budget, leading to much larger deals with a cross-
  Data Center                                                                                                      infrastructure and return the old equipment using the Migration
                          architectural network refresh. Customers are facing increasingly
                                                                                                                   Incentive Program (MIP), www.cisco.com/go/mip. Earn a significant
                          sophisticated threats while trying to secure more things by adding point                 upfront discount and also an additional 2% VIP rebate on eligible deals
  Collaboration           products from vendors flooding the market. You can offer a better                        with the Migration bonus.
                          approach.
  Service Provider                                                                                             •   Expanded Security Account Breakaway: Take advantage of the greatly
  Technology              Cisco leads the industry with the most effective and complete portfolio; an              expanded Security Account Breakaway deal registration program,
                          architectural approach that is simple, open, and automated; and unmatched                which now applies to all security products. Previously, Security Account
New Business track        threat intelligence from our Talos team. Win by offering better security and             Breakaway was limited to Cisco Firepower Threat Defense products.
                          the ability to scale customer solutions with best-in-class products that                 Now the program applies to network security (firewall/IPS), web
  Enterprise Networks     interoperate and become vastly more powerful as they are used together.                  security, email security, AMP for Endpoints, Stealthwatch, Identity
  Annuity                 Cisco programs and incentives help you build your practice and enhance                   Services Engine, Cisco TrustSec, and cloud security.* The combination
                          your growth and profitability.                                                           of compelling upfront discounts plus this additional 2% back-end VIP
  Collaboration Annuity                                                                                            bonus rewards you for selling the complete Cisco security architecture
                          In VIP 31, Cisco Master Security and Advanced Security Architecture
                                                                                                                   into your customer base.
  Security Annuity        Specialized Partners can enjoy more return on their investments in
                          advanced Cisco security specializations.                                           *While cloud security deals can now be registered with Account Breakaway
  Data Center Annuity                                                                                        for a higher discount, this additional 2% VIP bonus does not apply to cloud
                            •   Multiyear security licenses pay more. Security Software Volume
                                                                                                             security products (Cisco Umbrella and Cloudlock) under the Security
  Meraki                        Purchasing Program, Enterprise License Agreements (ELA), Security
                                Advantage, and multiyear software solutions increase profitability: In VIP   Annuity VIP subtrack.
                                31, earn a 5% rebate on multiyear (3+ years) licenses, vs. a 4% rebate       Go to www.cisco.com/go/sellingsecurity for more details on all security
                                for single-year and perpetual licenses.                                      programs and promotions.

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          For success in the Security subtrack:                                                        •   Use your existing relationships within customers to sell the Cisco
                                                                                                                           Security Architecture.
                            •   Lead with security in other network and data center deals for bigger
                                deal size, better pull-through, and increased profitability.                           •   Use the Security Account Breakaway bonus (2%), Migration bonus
Overview
                                                                                                                           (2%), Gold Certified and Cloud and Managed Services (CMSP) Master
                            •   Leading with security provides upsell, cross-sell, and migration
                                                                                                                           Partner bonus (1%), and Master Specialization and Cisco Powered
Track Highlights                opportunities, igniting network refresh deals and making them 10x
                                                                                                                           bonus (2%) to receive up to an additional 7% VIP rebate.
                                bigger.
Architecture track                                                                                                     •   Gain ease of doing business with simple buying models such as Cisco
                            •   A services-led approach drives significant cross-architectural activity
                                                                                                                           ONE (include AMP for Endpoints), ELA, and Security Volume Purchasing
                                and expands the deal size. Leading with or attaching your own services
  Enterprise Networks                                                                                                      Program.
                                or adding Cisco Services will increase your revenue and profit.

  Security                Rebate summary table

  Data Center                                                                                  VIP 30     VIP 31
                           Offer
                                                                                               rebate     rebate
  Collaboration                                                                                                                                                       Profitability
                           All hardware                                                          4%        5%

                                                                                                                   +                                    =
  Service Provider                                                                                                                2% Account                            impact:
                           1-year and perpetual software licenses*                               4%        4%
  Technology                                                                                                                     Breakaway or                          40-50%
                           3- and 5-year and ELA software licenses*                              8%        5%                   Migration bonus                     increase in VIP
New Business track         Multiyear ELA software License bonus                                  N/A       3%                                                            rebate
  Enterprise Networks     *Cisco Cloud Web Security (CWS) products are not eligible in VIP 31.
  Annuity
                          For a complete list and details, visit www.cisco.com/go/vipskus.
  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Architecture track
Overview                  DATA CENTER                                                                         •   Win new business with Tetration Analytics. Expand customer
                                                                                                                  relationships and budget allocation when selling Tetration (5%). Using
                          Powered by intent. Informed by context. Delivered across multicloud.
Track Highlights                                                                                                  machine learning, Tetration analyzes application behavior (important for
                          The Cisco Data Center captures the intent of users and applications. It                 security compliance and enforcement) and accurately maps application
                          interprets the context of every application transaction, user experience, and           dependencies (important for zero-trust implementation and app
Architecture track                                                                                                migration projects).
                          infrastructure use. It constantly learns, adapts, and protects. And gets
  Enterprise Networks     smarter every day.                                                                  •   Capture software recurring revenue. Cisco ONE Enterprise Cloud
                          The benefits for customers are clear:                                                   Suite (Cisco UCS Director, Cisco CloudCenter, etc.) offers a 5% rebate.
  Security                                                                                                        This software suite manages data center infrastructure and provides a
                            •   Enhanced application performance across any device and location                   consistent application deployment experience for developers working
  Data Center               •   Seamless multicloud mobility for application deployments to all locations         with infrastructure resources in the data center and public clouds.
                                within your data center and public clouds                                         Combine hardware opportunities with software to maximize deal size
  Collaboration                                                                                                   and VIP rebates.
                            •   Pervasive security protecting applications, infrastructure, data, users,
  Service Provider              and devices with performance visibility and analytics                         •   Maximize storage networking profitability. In customer digital
  Technology                                                                                                      transformation projects, storage budgets are growing faster than other
                          In VIP 31, the Data Center subtrack offers rebates on mission-critical                  infrastructure budgets. Lead with the Cisco Multicast Distributed
                          infrastructure and applications:                                                        Switching (MDS) solution (2%) providing multiprotocol compatibility,
New Business track
                            •   Predictable profitability when leading with Cisco compute and                     unified OS and management tools, and high-performing service-
  Enterprise Networks           storage solutions. Including all Cisco UCS (3%, except CPUs),                     oriented SANs.
  Annuity                       HyperFlex (4%, except CPUs), and software-defined storage on Cisco          All Advanced Unified Fabric Technology specialized and/or Advanced
                                UCS (3%, except CPUs). HyperFlex combined with Cisco
                                                                                                            Unified Computing Technology specialized partners must have the
  Collaboration Annuity         CloudCenter™ software provides seamless application deployment in
                                                                                                            Advanced Data Center Architecture Specialization on July 28, 2018, to
                                data centers and public clouds.
                                                                                                            meet the VIP 31 specialization requirement for payout.
  Security Annuity          •   Enjoy more rebates on Cisco Nexus 9000 Series and Cisco ACI.
                                Customers prefer the open, programmable, software-defined
  Data Center Annuity
                                networking capabilities built into the Cisco Nexus 9000 and Cisco ACI
  Meraki                        solutions. You can earn more in VIP by selling Cisco Nexus 9000 Series
                                (5%) and Cisco ACI (10%) compared to other data center switches.

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Significantly increase rebates by registering and booking deals with                            For success in the Data Center subtrack:
                          Account Breakaway for Cisco UCS, HyperFlex, and Cisco Nexus or with the
                                                                                                                            •   Focus on selling the Cisco Nexus 9300 or 9500 switches with Cisco
                          Migration Incentive Program (MIP). Receive an additional 2% VIP rebate,
Overview                                                                                                                        ACI and receive rebates of 5% for Cisco Nexus 9000 hardware and
                          resulting in 40 to 100% profitability increase. Visit www.cisco.com/go/ab or
                                                                                                                                10% for Cisco ACI software.
                          www.cisco.com/go/mip for more information.
Track Highlights                                                                                                            •   Attach Cisco ACI software leaf licenses to Cisco Nexus 9000 switches
                          Account Breakaway / Migration bonus impact                                                            for deployments not using Cisco ACI to future-proof customer
Architecture track                                                      Base          +2% Account         Profitability
                                                                                                                                investments.
                          Offer                                        rebate         Breakaway or          impact          •   Build the next-generation data center backbone and lead with the Cisco
  Enterprise Networks                                                                Migration bonus                            Nexus 9300 or 9500 platform for a 40 or 100 Gigabit Ethernet product
                                                                                                                                lineup for features, pricing, and best profitability at a 5% rebate.
  Security                All Cisco UCS hardware (excluding
                                                                         3%                  5%              +66%           •   Sell the Cisco UCS Mini solution to customers requiring compute
                          CPUs)
  Data Center                                                                                                                   solutions for remote office locations and remote management from a
                          Cisco HyperFlex (excluding CPUs)               4%                  6%              +50%               central location.
  Collaboration           Eligible Cisco Nexus 9000 Series                                                                  •   Offer Cisco HyperFlex solution for VDI, storage, and compute needs,
                                                                         5%                  7%              +40%               Cisco offers the ideal hardware-and-software integrated solution with
                          Switches
  Service Provider                                                                                                              the most advanced management capability.
  Technology              Eligible Cisco Nexus 3000 and
                                                                         2%                  4%             +100%
                          7000 Series Switches                                                                              •   For customers requiring large storage capacity with scalability, the
New Business track                                                                                                              Cisco UCS S-series dense storage server is the latest addition to the
                          See the newly added Data Center Annuity subtrack in the                                               Cisco UCS product family. This solution receives a 3% rebate.
  Enterprise Networks     New Business track.                                                                               •   For any customer with concerns about a secured infrastructure or the
  Annuity                                                                                                                       need for deep application access visibility, the Cisco Tetration Analytics
                                                                                                                                solution provides a highly scalable, always-on visibility-and-analytics
  Collaboration Annuity                                                                                                         platform. This solution receives a 5% rebate.
                                                                                                                            •   Lead storage networking deals with high-performing Cisco MDS. This
  Security Annuity
                                                                                                                                solution offers 2% rebate.
  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Rebate summary table
                                                                                                  VIP 30   VIP 31
                           Offer
Overview                                                                                          rebate   rebate
                           Data Center – Cisco UCS
Track Highlights
                           All Cisco UCS hardware, including SmartPlay bundles                      3%      3%
Architecture track         (except CPUs)
                           Cisco HyperFlex (except CPUs)                                            4%      4%
  Enterprise Networks
                           Cisco ONE Enterprise Cloud Suite                                         5%      5%
  Security                 Data Center Switching and Software
  Data Center              All eligible Cisco Nexus 3000 and 7000 Series Switches                   2%      2%

  Collaboration            All eligible Cisco Nexus 9000 Series Switches and Cisco                  5%      5%
                           Application Policy Infrastructure Controller (APIC)
  Service Provider         Cisco Tetration Analytics Hardware                                       5%      5%
  Technology
                           Cisco ACI software                                                      10%      10%
New Business track         Cisco MDS                                                                2%      2%

  Enterprise Networks     For a complete list and details, go to www.cisco.com/go/vipskus.
  Annuity

  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Architecture track
Overview                  COLLABORATION                                                                     For success in the Collaboration subtrack:
                          Engage and innovate anywhere on any device                                          •   Meetings, from the huddle room to the boardroom, are more powerful
Track Highlights                                                                                                  with Cisco Spark and Cisco Spark connected devices. Cisco Spark, our
                          Working together, people can achieve extraordinary things. Cisco
                                                                                                                  app-centric cloud-based service, provides a complete collaboration
Architecture track        collaboration technology empowers people to engage and innovate                         suite for teams to create, meet, message, call, whiteboard, and share,
                          anywhere, on any device. Change is happening, and customers are                         whether they’re together or apart. Win new customers across all market
  Enterprise Networks     demanding modern collaboration tools to support this new way of working.                segments, and extend collaboration capabilities for existing customers.
                          Profit and grow as you build upon your customers’ existing collaboration
                          investments, offer attractive pricing, and provide flexible deployment and          •   Lead with the Cisco Spark Room 55 and 70 room endpoints, now
  Security
                                                                                                                  available via both the GPL and Annuity-based subscriptions.
                          consumption options.
  Data Center                                                                                                 •   For midmarket customers who require an on-premises solution,
                          Benefit from VIP as you sell cloud, on-premises, and hybrid Cisco
                                                                                                                  position Cisco Business Edition 6000 (BE6000), our packaged
  Collaboration           collaboration solutions.
                                                                                                                  collaboration solution, with Cisco Unified Workspace Licensing (CUWL).
                            •   As developing a new base of monthly recurring revenue becomes
  Service Provider                                                                                            •   For SMB customers who prefer an on-premises IP telephony solution,
                                increasingly important, partners should focus on creating recurring
  Technology                                                                                                      but one that is managed via a cloud portal, sell the Business Edition
                                revenue streams with new and existing customers. Land, adopt,
                                                                                                                  4000. You have an opportunity to receive the incentive for the phones
                                expand, and renew with Cisco Spark (Messaging, Meetings, Calling,
New Business track                                                                                                and endpoints sold in this Collaboration subtrack. For the BE4000
                                and Hybrid).
                                                                                                                  prepaid licensing subscriptions, which cover the devices of end users,
  Enterprise Networks       •   Sell the full collaboration portfolio as a service with Cisco Spark Flex          see the Collaboration Annuity subtrack (below).
  Annuity                       Plan, a user-based subscription offer for Meetings, Messaging, and
                                                                                                              •   Capture customer care and omnichannel opportunities on every sale
                                Calling with cloud, on-premises, and hybrid deployment flexibility.
                                                                                                                  with Cisco Unified Contact Center Enterprise and Express solutions.
  Collaboration Annuity     •   Help your customers stay ahead of the competition by refreshing their
                                                                                                              •   Sell the Cisco IP Phone 8800 Series and position video-enabled
                                infrastructure and return the old equipment using the Migration Incentive
  Security Annuity                                                                                                conference rooms and desktops with the award winning DX Series,
                                Program (MIP), www.cisco.com/go/mip. Earn a significant upfront
                                                                                                                  Room Kit, and Room Kit Plus.
                                discount and also an additional 2% VIP rebate with the Migration bonus.
  Data Center Annuity
                            •   See the Collaboration Annuity subtrack within the New Business track
  Meraki                        for details on the recurring revenue opportunity.

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          Rebate summary table
                                                                                                     VIP 30     VIP 31                                                               VIP 30   VIP 31
                           Offer                                                                                         Offer
Overview                                                                                             rebate     rebate                                                               rebate   rebate
                           Endpoints                                                                                     Contact Center: Cisco Unified Contact Center Enterprise      15%      15%
Track Highlights                                                                                                         (IPCCE), Cisco Unified Customer Voice Portal (CVP), Cisco
                           IP Phone 8800 Series, non-3PCC (newer models): 8845,                           8%     8%      Unified Contact Center Express (IPCCX) 10.x, 11.x
Architecture track         8851, 8861, 8865                                                                              Cisco Unified Workspace Licensing: CUWL Meetings, CUWL       10%      10%
                           DX Series: DX70, DX80                                                          8%     8%      Standard
  Enterprise Networks
                           Expressway™ C and E                                                                           Enterprise Agreements: EAUC Suite, EATP Suite, EAHCS         8%       5%
                                                                                                          1%     1%
  Security                                                                                                               Suite, EAWBX Suite
                           IP Phone 8800 Series, non-3PCC (older models): 8811,                           5%     5%
  Data Center                                                                                                            UCL: UCL Enhanced, UCL Enhanced Plus                         10%      10%
                           8821, 8841
  Collaboration                                                                                                          UCL: UCL Basic, UCL Essential                                5%       5%
                           IP Phone 7800 Series, non-3PCC: 7861, 7841, 7821, 7811                         5%     5%
                           IX Series: IX5000, IX5200                                                      5%      –      Hosted Collaboration Solution (HCS):                         10%      5%
  Service Provider
  Technology                                                                                                             HCS Foundation - Standard and Room
                           Cisco Spark Room 55 and 70                                                      –     5%
                                                                                                                         HCS LE Foundation - Standard and Room
New Business track         Cisco Spark Board 55 and 70 (GPL only)                                          –     5%
                                                                                                                         Cisco Unity® Connection 10.x, 11.x                           10%      10%
                           MX Series: MX200, MX300, MX700, MX800                                          5%      –
  Enterprise Networks                                                                                                    SP View                                                      10%      10%
  Annuity                  SX Series: SX10, SX80                                                          3%     3%
                                                                                                                         Emergency Responder                                          5%        –
                           Cisco Spark Room Kit                                                           3%     3%
  Collaboration Annuity                                                                                                  Virtual Cisco TelePresence® Server                           10%       –
                           Cisco Spark Room Kit Plus                                                       –     3%
  Security Annuity                                                                                                       Conductor                                                    10%       –
                           Software
                                                                                                                         Cisco TelePresence Room License                              10%      10%
  Data Center Annuity
                           Business Edition 6000: Midmarket Cisco Unified Workspace                       15%    15%
                                                                                                                         Cisco TelePresence Management Suite (TMS)                    10%      10%
                           Licensing Professional (CUWL Meeting); Midmarket Cisco
  Meraki
                           Unified Workspace Licensing Standard (CUWL Standard)                                          Shared Multiparty Plus (SMP+)                                10%      10%
                           Business Edition 6000: Midmarket Unified Communications                        10%    10%     Personal Multiparty Plus (PMP+)                              10%      10%
                           Licensing (UCL): UCL Enhanced, UCL Enhanced Plus, UCL
                           Basic, UCL Essential                                                                          Server hardware                                              1%       1%
                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential                  For a complete list and details, go to www.cisco.com/go/vipskus.
Cisco Value Incentive Program 31
                          Architecture track
Overview                  SERVICE PROVIDER TECHNOLOGY                                                      As Cisco Service Provider Architecture specialized partners, being capable
                                                                                                           in service provider technology will open new opportunities across all
                          Digital transformation journey
Track Highlights                                                                                           segments and help service providers through the digital transformation.
                          Digitization is disrupting companies in every industry. Business and             With VIP 31, you can now expand more deeply into service provider
Architecture track        consumption models are changing. Every country, every city, every                technology, knowing that you can take advantage of VIP rebates to increase
                          business, every home, and every car are becoming digital. Now more than          your profitability as you do so.
  Enterprise Networks     ever, companies need to reinvent their business and technology strategies
                                                                                                           Moreover, if you help your customers stay ahead of the competition by
                          as they become digital organizations. We recognize that service providers
                                                                                                           refreshing their infrastructure and return the old equipment using the
  Security                are at different points in their digital transformation journey. At Cisco, we
                                                                                                           Migration Incentive Program (MIP) (www.cisco.com/go/mip), you can earn
                          can partner with service providers to meet their specific business
  Data Center                                                                                              a significant upfront discount and an additional 2% VIP rebate with the
                          objectives and goals both today and into tomorrow. With our open, flexible,
                                                                                                           Migration bonus.
                          and reliable architecture and our ability to help manage ROI and expenses
  Collaboration           not only through our virtualized portfolio, orchestration, and automation        To benefit from VIP, be part of the Cisco Service Provider Advanced
                          capabilities, Cisco is your partner that delivers end-to-end value,              Architecture Specialization. Take advantage of the wealth of sales,
  Service Provider
                          particularly as service providers embark deeper toward digitization efforts.     presales, and field engineer training available to achieve service provider
  Technology
                                                                                                           architecture recognition to gain the full potential of VIP.
                          The service provider architecture is the foundation for transformation of the
New Business track        experience and of the business. Cisco’s architecture vision empowers
                          service providers to be able to realize four primary tangible benefits: speed,
  Enterprise Networks     efficiency, growth, and security. Cisco’s vision for service providers is to
  Annuity                 transform the business, experience, and architecture through a strategy
                          and architecture based on the following tenets: virtualization, automation,
  Collaboration Annuity   simplification, and programmability.
  Security Annuity

  Data Center Annuity                                                                                                               Advanced Service
                                                                                                                                    Provider
  Meraki
                                                                                                                                    Architecture
                                                                                                                                    Specialization

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          For success in the Service Provider Technology subtrack:                            •   Sell Cisco Convergence System 2000 (NCS 2000), which sets the
                                                                                                                  industry benchmark for DWDM solutions by delivering the touchless
                            •   Use Cisco’s routing portfolio and its best-in-class routing software and
                                                                                                                  programmability, massive scale, multilayer convergence, and ultralong-
Overview                        automation (SDN, NFV, orchestration, network intelligence, and
                                                                                                                  haul performance necessary for tomorrow’s network architectures.
                                programmability) so that service providers get more agility to innovate
                                as well as the ability to deliver better network quality.                     •   Position Cisco Evolved Programmable Network (EPN) Manager to
Track Highlights                                                                                                  deliver the new-generation network management solution.
                            •   Encourage adoption of the Cisco ASR 9000 Series, either by migration
Architecture track              from the 7600 or in greenfield opportunities, and qualify for VIP on the
                                ASR 9000 Series or enhance ASR 9000 Series configurations with              Rebate summary table
  Enterprise Networks           Tomahawk line cards, delivering higher density and scale, and qualifying
                                for VIP.                                                                                                                          VIP 30     VIP 31
                                                                                                            Offer
  Security                                                                                                                                                        rebate     rebate
                            •   Position NCS 4200, which uses the latest CEM technology to help our
                                customers in the TDM2IP migration while continuing to maintain their        SP Core: NCS 5500 Series                                1%         1%
  Data Center
                                existing revenue streams.
                                                                                                            SP Edge: ASR 9000 Series (Typhoon line cards            1%         1%
  Collaboration             •   Sell Cisco NCS 5500 Series, designed to efficiently scale between data      excluded), NCS 5000 Series, Cisco IOS® XRv
                                centers and large enterprise, web, and service provider WAN and
  Service Provider              aggregation networks.                                                       SP Access: ASR 903, 920; NCS 4200, ASR 900 Series       1%         1%
  Technology                •   Use Cisco NCS 5000, which offers a high-density, very small form            SP Optical: NCS 4000, 2000, 1000 Series;                1%         1%
                                factor MPLS aggregation router for metro aggregation.                       ONS 15216; ONS Pluggable Optics Series
New Business track
                            •   Sell Cisco NCS 1000 to interconnect data centers.                           SP Network Management Solution: Evolved                 1%         1%
  Enterprise Networks       •   Win with the ASR 900 Series, a modular aggregation platform that            Programmable Network Manager (EPN-M) 2.0
  Annuity                       delivers cost-effective converged mobile, residential, and business
                                                                                                            For a complete list and details, go to www.cisco.com/go/vipskus.
                                services.
  Collaboration Annuity     •   In the mobile network industry, the hottest topic today is the 5G network
                                transition. 5G networks will demand higher bandwidth and stricter
  Security Annuity
                                phase/cy synchronization compared to the current 3G/4G networks.
  Data Center Annuity           Use the ASR 920 router to prepare for the transition to 5G.

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          New Business track
Overview                  ENTERPRISE NETWORKS ANNUITY                                                     •   Land and Expand bonus: Receive a one-time payment for new sales.
                                                                                                              Focus not only on new sales motions but also on expansion of existing
                          New addition, new opportunity
Track Highlights                                                                                              subscriptions and upsell sales motions, with a 7% bonus paid on the
                          Added during VIP 30, the Enterprise Networks Annuity subtrack                       Total Contract Value (TCV).
Architecture track        complements the current Collaboration Annuity and Security Annuity
                                                                                                          •   Activation bonus: Activate the key software in Cisco ONE Enterprise
                          subtracks. It initially rewards Cisco ONE Enterprise Agreements ordered on
                                                                                                              Agreements in a production network to add up to a 17% incremental
  Enterprise Networks     Cisco’s Annuity platform in CCW.
                                                                                                              bonus. The three piloted pieces of software are Cisco DNA Center, ISE,
                          Cisco Enterprise Agreement Suites for Cisco ONE software:                           and Stealthwatch. The one-time bonus is paid on the TCV of eligible
  Security
                          Enterprise Agreements offer a more valuable and flexible way to consume             software. The software activation needs to be validated via Proof-of-
  Data Center             Cisco software for the infrastructure. Offering a simple agreement for              Performance (POP) submitted for review. You will have until October
                          multiple suites of best-in-class products and services, this multiyear              26, 2019, to activate the software and provide the POP (12 months at
  Collaboration           agreement provides organizations with enterprisewide entitlement to                 minimum). Earn up to three times as much in VIP payments on eligible
                          predefined software.                                                                SKUs.
  Service Provider
                          The incentive structure is the same as for other Annuity subtracks –            •   Renewal bonus: Earn a one-time payment if you renew subscriptions
  Technology
                          simplified and more powerful, with three rebate components, and the                 with existing customers. To be eligible for the Renewal bonus, a
New Business track        Activation bonus on top.                                                            partner’s ending Cumulative MRR for the VIP period must be at least
                                                                                                              equal to the ending Cumulative MRR for the prior VIP period. All
                            •   Base payout: Provides partners with a predictable, recurring, and             partners who qualify for the reward in the Enterprise Networks Annuity
  Enterprise Networks           simple rebate model. You can earn a 2% rebate, based on the
  Annuity                                                                                                     subtrack will be paid at the same rate of 1% of the TCV of renewed
                                Cumulative Monthly Recurring Revenue (MRR) during the entire VIP              subscriptions during the VIP period. Lifecycle Advisor for Cisco
                                period. The MRR includes all annuity transactions: new, upsells, and          Enterprise Agreement partners will be paid at a higher rate of 2%.
  Collaboration Annuity
                                renewals. This approach encourages partners to build an ongoing,              Lifecycle Advisor status needs to be achieved before the end of VIP 31
  Security Annuity              growing “bank” of recurring revenue.                                          to qualify for the higher incentive payout.

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          New Business track
Overview                  COLLABORATION ANNUITY                                                              •   Renewal bonus: One-time payment incents partners to focus on
                                                                                                                 existing customer renewals. To be eligible for the Renewal bonus, a
                          Simplified and more powerful evolution of the Collaboration Annuity pilot
Track Highlights                                                                                                 partner’s ending VIP period Cumulative MRR must be at least equal to
                          Cisco and its partners are driving significant innovation and change in the            the ending Cumulative MRR in the prior VIP period. All partners who
Architecture track        collaboration market. Cisco’s cloud- and hybrid-based solutions have                   qualify for the reward in the Collaboration Annuity subtrack will be paid
                          become a key component of the strategic shift in how customers consume                 at the same rate of 1%, paid on the TCV of renewed subscriptions
  Enterprise Networks     and partners sell collaboration. VIP 31 reflects this shift to cloud-based             during the VIP period. Lifecycle Advisor for Cisco Spark and WebEx will
                          collaboration solutions, as more partners build out their practices to capture         be paid at a rate of 2%, while Lifecycle Management approved partners
  Security                the recurring revenue opportunity with Cisco’s cloud collaboration portfolio.          will see the highest Renewal bonus payout rate of 3%. Both Lifecycle
                          Lead with Cisco Spark Flex. It is the licensing model that delivers                    Advisor and Lifecycle Management status need to be achieved before
  Data Center                                                                                                    the end of VIP 31 to qualify for a higher incentive payout.
                          extraordinary value to customers, by unifying premises and cloud meetings
  Collaboration           in a cost-competitive and simple manner. Selling Cisco Spark Flex provides       Cisco WebEx GRA and GPL migrations to the Subscription Billing Platform
                          you the opportunity to earn rebates on the land, expand, and renew               (SBP) are excluded from the VIP Collaboration Annuity subtrack and do not
  Service Provider        components of VIP 31.                                                            qualify for any VIP payout.
  Technology              VIP 31 continues with the same incentive framework, designed to promote          Get approved in the SaaS Subscription Resale Program (subject to Annuity
                          healthy collaboration SaaS practices and support the transition to               platform availability in your particular country) in order to be able to enroll
New Business track        performance-based recurring revenue rebates.                                     into the Collaboration Annuity subtrack.
  Enterprise Networks       •   Base payout: Provides partners with a predictable, recurring, and          For success in the Collaboration Annuity subtrack:
  Annuity                       simple rebate model. Payments are 2%, based on the Cumulative
                                                                                                             • Accelerate recurring revenue streams with Cisco Spark Flex Plan, Cisco
                                Monthly Recurring Revenue (MRR) during the entire VIP period for all
  Collaboration Annuity                                                                                        Spark services (Messaging, Meetings, Calling, and Hybrid services).
                                annuity transactions: new, upsells, and renewals. This approach
                                                                                                               Drive additional monthly recurring revenue by attaching endpoint
                                encourages partners to build an ongoing, growing “bank” of recurring
  Security Annuity                                                                                             devices, such as Cisco Spark Board and Cisco Spark Room 55 and 70.
                                revenue.
                                                                                                             • Focus on land, adopt, expand, and renew motions within your
  Data Center Annuity       •   Land and Expand bonus: One-time payment for new sales, incents
                                                                                                               collaboration practice to increase your Base payout, Land and Expand
                                partners to focus on software adoption for new and existing upsell and
                                                                                                               bonus payouts, and Renewal bonus payouts.
  Meraki                        expand sales motions, with a 5% bonus paid on the Total Contract
                                Value (TCV).                                                                 • Achieve customer success that results in high customer retention rates
                                                                                                               and low customer churn.
                                                                                                           Learn more at www.cisco.com/go/saassubscriptions and
                                                                                                           www.cisco.com/go/vip.
                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          New Business track
Overview                  SECURITY ANNUITY                                                                There are three components to the Security Annuity VIP rebate:
                          Evolved Security Annuity pilot in VIP 31                                          •   Base payout: Earn a 2% rebate on all of your Annuity revenue
Track Highlights                                                                                                (Cumulative MRR) during the VIP 31 period to secure a predictable,
                          In VIP 31, we continue a simplified three-tier payout structure that will
                                                                                                                recurring revenue stream.
Architecture track        enhance your ability to earn back-end rebates when selling Security
                          Annuity-based offers. The new incentive is designed to promote healthy            •   Land and Expand bonus: Earn a bonus of 2% on new subscriptions or
  Enterprise Networks     security SaaS practices for Cisco Umbrella, Cisco Cloudlock, and Cisco                the expansion of existing ones. This is a one-time bonus based on the
                          Stealthwatch Cloud, focusing on the land, adopt, expand, and renew sales              Annual Contract Value (ACV).
  Security                motions.
                                                                                                            •   Renewal bonus: Earn a 2% rebate on timely renewed existing
                          Cisco Umbrella is a cloud security platform that provides the first line of           subscriptions. This one-time bonus is paid on the ACV of the renewals.
  Data Center
                          defense against threats. With Cisco Umbrella customers can:                           To be eligible for the Renewal bonus, a partner’s ending VIP period
  Collaboration                                                                                                 Cumulative MRR must be at least equal to the ending Cumulative MRR
                            •   Predict and stop attacks before they happen
                                                                                                                in the prior VIP period.
  Service Provider          •   Expand threat protection anywhere users go
  Technology                •   Deploy this protection enterprisewide within minutes

New Business track        Cisco Cloudlock is a cloud security platform that helps accelerate secure
                          use of the cloud, including the apps organizations buy and build.
  Enterprise Networks     Cisco Stealthwatch Cloud provides fully automated, real-time analysis of
  Annuity                 device-level network traffic and patterns of communication on the network
                          and in the public cloud. Cisco Stealthwatch Cloud can detect threats in real
  Collaboration Annuity   time, regardless of whether an attack is taking place on the network, in the
                          cloud, or across both environments.
  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          New Business track
Overview                  DATA CENTER ANNUITY
                          Recurring software sales. Recurring rebates with bonuses.
Track Highlights
                          The Data Center Annuity subtrack, introduced during VIP 30, included only
Architecture track        Enterprise Agreement Suites for Cisco ONE software. Now, in VIP 31, we
                          are adding new Annuity offers: Cisco Tetration Analytics and Cisco
  Enterprise Networks     Intersight™ software.
                            •   Cisco Enterprise Agreement suites for Cisco ONE software.
  Security                      Enterprise Agreements offer a more valuable and flexible way to
                                consume Cisco software for the infrastructure. Offering a simple
  Data Center
                                agreement for multiple suites of best-in-class products and services,
  Collaboration                 this multiyear agreement provides organizations with enterprisewide
                                use of predefined software.
  Service Provider          •   Cisco Tetration Analytics software. Tetration Analytics delivers
  Technology                    pervasive visibility across everything in a customer’s data center, in real
                                time. Using sensors to provide rich telemetry, Tetration Analytics
New Business track              software uses machine-learning techniques, behavior analysis, and
                                algorithmic approaches to provide deep application insights, implement
  Enterprise Networks
                                zero-trust model with white-list policy, detect policy-compliance
  Annuity
                                deviations, and facilitate efficient data center operations.
  Collaboration Annuity     •   Cisco Intersight software. Intersight simplifies and automates IT
                                operations management to make daily activities easier and more
  Security Annuity              efficient. We have extended our vision of adaptive management to
                                Cisco UCS and HyperFlex systems through the Cisco Intersight cloud-
  Data Center Annuity
                                based platform. You can efficiently implement operations automation of
  Meraki                        your IT infrastructure from the data center to the edge.

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          The incentive structure is exactly the same as for other Annuity subtracks -      •   Activation bonus NEW: Activate Cisco Intersight licenses and receive a
                          simplified and more powerful, with three rebate components. Additionally,             5% incremental bonus, paid on truly activated count and associated
                          we are expanding the Activation bonus pilot to the Data Center Annuity                TCV. Activation is monitored by Cisco using telemetry. You have until
Overview                  subtrack and adding Cisco Intersight software to it. Piloting the future vision       April 27, 2019, to activate the purchased licenses.
                          and simplification, Cisco Intersight activations will be monitored via
Track Highlights                                                                                            •   Renewal bonus: Earn a one-time payment if you renew subscriptions
                          telemetry, and validation via Proof-of-Performance (POP) submissions will
                                                                                                                with existing customers. To be eligible for the Renewal bonus, a
                          not be required for Activation bonus payment.
Architecture track                                                                                              partner’s ending Cumulative MRR for the VIP period must be at least
                            •   Base payout: Provides partners with a predictable, recurring, and               equal to the ending Cumulative MRR for the prior VIP period. All
  Enterprise Networks           simple rebate model. You can earn a 2% rebate, based on the                     partners who qualify for the reward in the Data Center Annuity subtrack
                                Cumulative Monthly Recurring Revenue (MRR) during the entire VIP                will be paid 1% of the TCV of renewed Cisco Enterprise Agreement
  Security                      period. The MRR includes all Annuity transactions: new, upsells, and            Suites for Cisco ONE software and Cisco Tetration Analytics software
                                renewals. This approach encourages partners to build an ongoing,                subscriptions during the VIP period. Lifecycle Advisor for Cisco
  Data Center                   growing “bank” of recurring revenue.                                            Enterprise Agreement partners will be paid at a higher rate of 2% on
                                                                                                                renewed Cisco Enterprise Agreement Suites for Cisco ONE software
  Collaboration             •   Land and Expand bonus: Receive a one-time payment for new sales.
                                                                                                                subscriptions. Lifecycle Advisor status needs to be achieved before the
                                Focus not only on new sales motions but also on expansion of existing
                                                                                                                end of VIP 31 to qualify for the higher incentive payout. Renewals of
  Service Provider              subscriptions and upsell sales motions. Cisco Enterprise Agreement
                                                                                                                Cisco Intersight subscriptions during the VIP period will be rewarded
  Technology                    Suites for Cisco ONE software and Cisco Tetration Analytics software
                                                                                                                with 2% of the TCV of renewed 1- and 3-year subscriptions and 3% of
                                provide a 3% bonus paid on the Total Contract Value (TCV). Sales of
                                                                                                                the TCV of renewed 5-year subscriptions.
New Business track              Cisco Intersight software yield 3% bonus on 1-year and 3-year
                                subscriptions and 5% bonus on 5-year subscriptions.
  Enterprise Networks
  Annuity

  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

                          © 2018 Cisco and/or its affiliates. All rights reserved.   Cisco Confidential
Cisco Value Incentive Program 31
                          New Business track
Overview                  MERAKI                                                                            For success in the Meraki subtrack:
                          Cisco Meraki Cloud Networking                                                       •   Select SKUs from the Meraki MX security family are eligible for VIP, with
Track Highlights                                                                                                  a focus on larger branch devices that provide headroom for growth in
                          Cisco Meraki has been on a relentless mission to simplify IT since 2006. An
                                                                                                                  network-connected devices and network capacity.
Architecture track        intuitive management dashboard provides comprehensive visibility and
                          control over a growing cloud-managed portfolio, incorporating wireless,             •   Most Meraki MS switching SKUs are eligible for VIP, with the greatest
  Enterprise Networks     switching, security, communications, and mobility management. The ability               rebates for MS425 aggregation switches and the MS350-24X
                          to centrally manage dispersed networks comprising thousands of Meraki                   stackable access switches with Multigigabit Ethernet.
  Security                devices is an enabler for multisite organizations of all sizes, and provides
                                                                                                              •   The high-end 802.11ac Wave 2 wireless access points – the MR52
                          considerable operational efficiency by lightening the load on IT teams.
                                                                                                                  and the Multigigabit MR53 – are available and eligible for VIP at the 6%
  Data Center
                          The majority of Meraki hardware SKUs are represented in VIP, enabling                   rebate level.
  Collaboration           partners to increase profitability by selling the full Meraki IT stack. Rebates
                                                                                                              •   The MC74 phone, for cloud-managed communication that integrates
                          range from 2% to 8%, with the higher end reserved for products that best
                                                                                                                  seamlessly with the rest of the Meraki network, is eligible for VIP at the
  Service Provider        position partners to capitalize on market trends and transitions.
                                                                                                                  8% rebate level.
  Technology              For VIP 31, the Meraki Cloud Networking subtrack is limited to the United
                          States, LATAM, and countries in EMEAR, APJ, and GC where Meraki is on
New Business track        the GPL at the start of the VIP period.
  Enterprise Networks     Cisco Gold Certified or Cloud and Managed Services (CMSP) Master
  Annuity                 Partners also have the opportunity to receive an additional bonus on the
                          SKUs in the 6% and 8% rebate categories.
  Collaboration Annuity

  Security Annuity

  Data Center Annuity

  Meraki

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