Today, Channelnomics reported that Cisco announced a margin haircut:
"Cisco global channel chief Edison Peres announced the changes here, and stressed that the company understands that change is both necessary and not always popular.
"Peres said the company will bring all of its deal registration programs together under a single umbrella, a move that will make it easier for Cisco recognize everything a partner does in one place.
"It will still provide incentives in all the same areas in deal registration, Peres said, but will now do so through a single program, and will increase margin lift for solution selling from five points to eight points of incremental margin."
By my quick calculation, that works out to a -$1.4 billion margin haircut for Cisco.
What's your calculation?
Related story:
Channelnomics: Cisco to Scrap Silver Tier in Next Channel Program
