Determine how the integration of applications is impacting the sales of Cisco IP Communications (IPC) products and the profitability of the Cisco Channel Partners worldwide. The CBG team analyzed how Cisco Channel Partners perform financially based on three types of business models (Product Resell Only, Systems/Network Integration, and Bundled Solutions). Through the development and use of Lifetime Value Calculator, CBG reviewed the long term profitability associated with these business models leading to the conclusion that:

1. Partners that offer Bundled Solutions generate larger deals in terms of revenue.
2. Bundled Solutions transactions tend to have larger profit margins from the sale of Cisco products and maintenance contracts, 3rd party applications, and Partner provided professional services.
3. Customers are more loyal to Partners who provide Bundled Solutions.
4. Customers tend to buy more over the lifetime of the partner-customer relationship when buying Bundled Solutions.

The CBG team interviewed a wide range of Cisco Channel Partners throughout the world. After gathering the data, the team developed case studies outlining the sales approach, the solutions offered, and the value of the customer to Cisco and the Partner. A probability based ROI Calculator was developed to determine the profitability of the three types of transactions and the value of the customer to Cisco and the Channel Partner over a six year lifetime. Based on the results of the survey, the CBG team was engaged to help design and implement a repeatable process for helping Cisco Channel Partners develop more solutions-centered business models.