Flexible Consumption Models for Cisco Customers and Partners

Cisco Capital looks to consistently provide competitive advantages that address customer and partner needs with consumption solutions, specifically usage and subscription payment models. Leveraging these models has created business opportunities and maximized success in the following ways:

• Cisco Capital offers flexible consumption models that allows businesses to pay for Cisco products and services as they consume. That way, we can deliver a more scalable and agile financial model to customers. We take on the financial risk, which gives organizations the opportunity to scale their business based on the demand. For example, in the Data Center customers can acquire an entire solution for UCS servers where they are only committed to pay up to half the cost of the servers and can pay on a quarterly basis. The remaining servers are billed based on actual usage. Our consumption products provide an on-premise solution with public cloud benefits – including privacy, security and compliance in mind – and minimize risk associated with add-ons and upgrades.  We have many capabilities and benefits that range from enabling a growth environment to reducing time to satisfy capacity requirements.
• Customers want subscription-like models that package the entire solution – software, services and hardware – and Cisco Capital powers the Cisco model that allows for faster adoption of newer technologies and eliminates the burden of owning and sweating assets. This structure provides a predictable cost and enables easier upgrades, including moving between license tiers. In addition, Cisco provides solutions that help customers refresh their networks and achieve their digitization goals in a cost-effective way, which can be achieved through a single subscription invoice, a consistent product lifecycle, and predictable access to product innovations with refresh cycles.
• Partners can take advantage of a financial solution which enables and monetizes managed services. Cisco Capital provides a single contract with the customer and an integrated invoice covering the full solution for a managed service. Partners can then leverage Cisco Capital’s billing and collecting process, if desired, and we protect their balance sheet and cash flow by paying them upfront for investments needed.

From traditional financing structures to innovative consumption and subscription-based models, partners and customers benefit from Cisco Capital’s offers. These models can facilitate greater adoption of innovative, differentiated features without the need to repurchase solutions, which makes Cisco’s offerings attractive in a competitive market.

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