LOS ANGELES - Cisco (NASDAQ: CSCO), a leader in networking and security, unveiled its revamped Cisco 360 Partner Program at the Cisco Partner Summit today. The program, set to launch in February 2026, is the biggest change to Cisco's partner program in nearly 30 years and aims to better serve the evolving needs of customers by modernizing infrastructure, managing AI workloads, and enhancing security and resilience.
The new program will simplify the partner experience and focus on value creation over transactions. It will measure partners based on how they support customer life cycles and managed services, invest in skills, expand their customer base, and engage across the customer journey and partner ecosystem. Cisco is making an $80 million investment in partner initiatives, with $60 million allocated for all-access Cisco U. subscriptions to aid in skill development and certification. An additional $20 million will fund quarterly training events for partners, focusing on AI, security, and networking.
Rodney Clark, Senior Vice President of Partnerships and Small and Medium Business at Cisco, emphasized the program's goal to help customers harness technology for business outcomes and to drive profitable growth for partners.
The Cisco 360 Partner Program will introduce two partner designations: Cisco Partner and Cisco Preferred Partner. These designations will recognize partners in specific portfolios, such as Security or Networking, enabling them to market themselves accordingly. Cisco will also continue to develop specializations, including a new Cisco AI-Ready Infrastructure Solution Specialization, to help partners differentiate their market position.
The program will have a 15-month transition period, during which Cisco will support partners and distributors through the changes. Existing levels, roles, and lifecycle practice investments will be recognized until the full implementation of the program.
Elisabeth De Dobbeleer, Senior Vice President of the Cisco Partner Program, shared that the initiative aims to transform partner success and align with Cisco's strategic vision. Partners like Computacenter and TD SYNNEX (NYSE:SNX) have expressed their support for the program, highlighting its focus on skills development and commitment to mutual success.
This news is based on a press release statement from Cisco. The company's new direction is anticipated to guide partners through market changes and strengthen Cisco's position in thought leadership.
In other recent news, Cisco Systems (NASDAQ:CSCO) has been making significant strides, particularly in the realm of artificial intelligence (AI). The company recently introduced new AI solutions, including the Webex AI Agent, AI Agent Studio, and Cisco AI Assistant, aimed at enhancing customer service experiences. These tools, expected to be available for cloud customers in Q1 2025, are designed to streamline customer interactions and issue resolution through advanced conversational intelligence and automation.
Cisco Systems has also been making headlines with its financial performance. The company reported Q4 2024 revenue of $13.6 billion, marking a 10% decline year-over-year. However, despite the overall decrease, certain sectors such as Security and Observability experienced significant growth, surging by 81% and 41% respectively. The acquisition of Splunk (NASDAQ:SPLK) further contributed an additional $960 million to the quarter's revenue.
Analyst firms Citi and HSBC have both upgraded Cisco's stock from Neutral to Buy. Citi's upgrade was based on Cisco's potential growth in the Ethernet AI Total Addressable Market and a narrowing valuation gap with peers. HSBC, on the other hand, anticipates a compound annual growth rate of 11.6% in Cisco's non-GAAP earnings per share from 2024 through 2027.
In addition to these upgrades, Cisco announced a substantial investment in cloud services provider, Coreweave, valuing it at $23 billion. This move underscores the company's intent to expand its presence in the rapidly evolving sector. Lastly, a notable change in the company's board of directors was announced, with Ekta Singh-Bushell not seeking re-election at the forthcoming annual stockholders meeting. These are all recent developments within the company.
InvestingPro Insights
Cisco's ambitious overhaul of its partner program aligns well with its current market position and financial performance. According to InvestingPro data, Cisco boasts a substantial market capitalization of $220.85 billion, underscoring its dominant position in the Communications Equipment industry. This financial strength provides a solid foundation for the $80 million investment in partner initiatives announced at the Cisco Partner Summit.
The company's focus on value creation and customer lifecycle support in the new program is reflected in its impressive gross profit margin of 64.73% for the last twelve months. This robust profitability gives Cisco the flexibility to invest in long-term strategic initiatives like the Cisco 360 Partner Program.
InvestingPro Tips highlight Cisco's commitment to shareholder value, noting that the company "has raised its dividend for 14 consecutive years." This consistent dividend growth, coupled with a current dividend yield of 2.87%, may appeal to income-focused investors and partners alike. The stability suggested by these metrics aligns with Cisco's long-term vision for its partner ecosystem.
Furthermore, the InvestingPro Tip stating that "15 analysts have revised their earnings upwards for the upcoming period" indicates positive sentiment around Cisco's future performance. This optimism could be partly attributed to the company's strategic moves, including the revamped partner program.
For readers interested in a deeper dive into Cisco's financial health and market position, InvestingPro offers 8 additional tips, providing a comprehensive view of the company's strengths and potential areas for growth.
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