Contact Information: Press Contact: Ron Schmidt Cisco 408 525-6088 ronschm@cisco.com Analyst Relations Contact: Ron Davis Cisco 408 526-8803 ronadavi@cisco.com
Cisco Capital Builds on SMB Momentum With Low Financing Rate for Award-Winning Cisco Support
4.25 Percent Financing on Multiyear SMARTnet Contracts Creates Revenue Opportunity for Channel Partners
| Source: Cisco Systems, Inc.
SAN JOSE, CA -- (MARKET WIRE) -- May 9, 2007 -- Cisco® (NASDAQ : CSCO ) and Cisco Capital™
today introduced a low 4.25 percent financing rate on multiyear maintenance
services contracts for small and medium-sized business (SMBs) and midmarket
businesses. Customers can now purchase SMARTnet® and other
subscription-based technical support services from Cisco channel partners
on monthly payment terms up to 36 months (60 months for Cisco Unified
Communications solutions). Cisco Capital has also simplified the quoting
process for service-contract financing.
Cisco maintenance services contracts extend and enhance the operational
lifetime of a Cisco networking device and Cisco IOS® Software, helping
organizations to maximize the availability of, and minimize the risks for,
systems running mission-critical applications. Multiyear contracts provide
the most convenience, locking in prices and eliminating the inconvenience
of renewing on an annual basis. The below-market 4.25 percent rate was
previously available only to enterprise customers purchasing multiyear
services contracts. This successful program has now been expanded to cover
Cisco's fast-growing SMB and midmarket segments.
"Our channel partners tell us that their SMB customers want the protection
that comes with a multiyear services contract, but few have the cash to pay
for it upfront," said Maryann Von Seggern, director of worldwide channel
development, Cisco Systems Capital Corp. "This competitive 4.25 percent
financing rate is aimed at helping channel partners increase the adoption
of multiyear Cisco services contracts and generating additional revenue.
The financing program provides an incentive for channel partners to offer a
multiyear service agreement with every sale and offers a compelling value
proposition for the customer."
Cisco Capital has also simplified the quoting and documentation process for
renewing services contracts. Channel partners can now receive a multiyear
financing quote with each contract renewal quote from Cisco. This
information makes it easier for channel partners to bring financing to more
Cisco SMB transactions. Customers may request monthly or quarterly payments
for services financing.
"SMB customers are more often taking a long-term managed approach to their
network as they realize the importance of continuity and total life cycle
to the health of a business," said Cyndi Privett, vice president of
research with Viewpoint Research. "Financing is an increasingly important
sales tool for partners to sell services into the SMB market segment. By
offering low financing on multiyear contracts to its SMBs, Cisco has made
it possible for these customers to receive the same optimal maintenance
services benefits that enterprises have enjoyed for years. This offering
gives Cisco partners another tool to make it affordable for SMBs to have
the technology and services they need to be competitive."
"This low financing rate gives us a tremendous opportunity to drive
multiyear service contracts sales and make them part of every solution
package we bring to our SMB customers," said Bob Stall, director of
leasing, Insight Enterprises. "Clients can lock in maintenance costs and
spread them over convenient monthly payments. As a result, we expect to
grow our volume of maintenance contracts this year."
Over the past three years, Cisco has invested billions in the SMB voice and
networking market, a segment that is growing more than 20 percent annually,
according to some industry analysts. Cisco Capital's financing tools and
programs are fully integrated with Cisco's SMB partner strategy,
specifically designed to help partners who sell to SMBs and midmarket
businesses increase their competitive advantage and drive more business
within this rapidly growing customer segment. For more information about
Cisco Capital and services financing, see
www.cisco.com/go/ciscocapitalpartners/us.
Program Requirements
Services finance offerings are available from Cisco Capital to end users
purchasing eligible multiyear Cisco services in the United States and
Canada. Cisco subscription-based services (including Advanced Services)
with a fixed contract price are eligible. All offers are subject to credit
approval. There is no minimum purchase price for multiyear service contract
financing.
About Cisco Capital
Cisco Systems Capital Corporation, a wholly owned subsidiary of Cisco
Systems, Inc., specializes in financing networks by providing innovative,
flexible financial programs to Cisco customers and channel partners
worldwide. Cisco Capital offers attractive, flexible and short-term
financing solutions that make it possible for customers to obtain higher
credit lines and longer and more flexible terms that ultimately help them
build stronger and healthier businesses. For more information, visit
www.cisco.com/go/ciscocapitalpartners/us.
About Cisco Systems
Cisco (NASDAQ : CSCO ) is the worldwide leader in networking that transforms
how people connect, communicate and collaborate. Information about Cisco
can be found at http://www.cisco.com. For ongoing news, please go to
http://newsroom.cisco.com.
Cisco, the Cisco logo, Cisco Capital, Cisco Systems, IOS and SMARTnet are
registered trademarks or trademarks of Cisco Systems, Inc. and/or its
affiliates in the United States and certain other countries. All other
trademarks mentioned in this document are the property of their respective
owners. The use of the word partner does not imply a partnership
relationship between Cisco and any other company. This document is Cisco
Public Information.
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