E-Commerce, Distributors Key to Cisco SMB Partner Push

The Cisco SMB segment is growing fast, with a combination of distribution, strategic partnerships and digital platforms fueling the rise.

Cisco has touted its SMB growth in the last year, calling it the fastest growing business segment in the company. The movement aligns with a larger shift that’s occurring among down-market IT purchasers. Namely, those small and medium-size businesses see their need to invest in technology. The demand for digital transformation no longer sits at just the large accounts, said Oliver Tuszik, Cisco’s senior vice president of global partner sales and general manager of routes to market.

Cisco’s Oliver Tuszik

“No matter what size of business you have, you need to have a digital business model,” Tuszik told Channel Futures.

Cisco SMB Push Called for Changes

But the shift to serve more SMBs has required significant changes at both the product and go-to-market levels. The vendor spent much of its recent Cisco Live conference pitching itself as a simplified provider of technology platforms.

Cisco’s Luxy Thuraisingam

“Our biggest opportunity is to simplify how we engage with our SMB customers,” said Luxy Thuraisingam, Cisco’s vice president of global SMB and partner marketing.

And on the go-to-market side, Cisco has embraced new tools, pricing and partner strategies. That includes a refreshed approach to driving leads from the Cisco website.

Sixty percent of Cisco SMB revenue comes from traditional VARs and SIs, but another 20% comes from MSPs and yet another 15% comes from communications service providers, according to global distribution and SMB sales lead Andrew Sage. Finally, five percent comes from e-commerce. In the meantime, distributors are working closely with many of those aforementioned partners.

Several Cisco executives detailed how the company going to market with partners to reach SMBs. They detailed the expansion of digital platforms, distribution relationships and telco partnerships.

View their commentary in the seven slides above.