Cisco and MCI Channel Accord Could Bear Fruit

March 21, 2005 - Notice all the big news coming out of San Jose last year 30 days, its nothing to sneeze at a joint distributor announced Cisco and MCI lost in the Shuffle. At the same time, analysts say, the arrangement can bear fruit incentives for both companies benefit.

Cisco and MCI announced a non-exclusive agreement, according to the provisions of this Cisco channel partners to sell MCIs IP-based Next Generation services - for example, MCI companies use VoIP services with Ciscos Call Manager and Call Manager Express - to small and medium-sized business customers. The two partners announced plans to create tools, training and curriculum, to help channel partners sales, and support the deployment of mixed hosted and premises IP-based solutions.

According to Kate gerwig a principal analyst for the network services with the existing analysis company, the agreement is a win-win both companies good.

"[T] he partnerships, and expand contacts and the spread of the two service companies in the SME market space, through Cisco channel partners," she noted. "MCI has talked about expanding its services through channel partners Over the past year, Cisco also want to use this to build its SMB customer base, The two companies have invested heavily in the large corporate customers. Extend channels for the products and services the market can be a cost-effective manner, the two companies to achieve these markets. " Partners say that the market is cited for such a solution: the overriding The overwhelming majority (94%) of small and medium-sized enterprise customers, currently providing services through value-added resellers, Cisco and MCI argue that, which makes Ciscos extensive channel achieve a natural tool, this new service.

"Their opportunities, in order to work together to Ciscos channel program Well, as long as a company can provide the appropriate tools and training channel partners for the sale of what may prove to be increasingly complex solutions This could include business applications, "gerwig speculate. " Question: who owns the customer is always a concern, especially with a VoIP services, MCIs strengths, and customers may feel more comfortable support from MCI or Cisco than from a channel partnership. " Have the usual concerns, however, starting with the primary non-exclusive partnership, which means that not all Cisco channel partners will become agents for MCI services, gerwig notebook.

"Since the non-exclusive deal for both parties, Cisco can bring other service providers a list of channel partners service provider.

Moreover, the channel partner is not necessary to every product line, and If they have set up a relationship with another carrier, They can choose to take through the sale of MCIs services with Cisco equipment, "she said . -- Stephen swoyer