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Cisco acquires cloud, data analytics vendor

Channel Strategy

As the channel continues to evolve into a recurring revenue business from a fixed transaction model, Cisco Systems announced it has acquired Carlsbad, Calif.-based vendor of cloud and data analytics software called MaintenanceNet.

The deal is not on the blockbuster level at only $139 million, but for Cisco it now has a software-as-a-service platform for implementation, tracking, managing and renewing of contracts for its customers and channel partners. The acquisition is expected to be complete in the first quarter of Cisco’s fiscal year 2016.

MaintenanceNet works with partners to help them increase profitability by better management of service sales and warranties. One of the strategies it used was taking advantage of the longer hardware refresh cycles, which delayed new purchases. For the channel, MaintenanceNet found greater potential for services and warranty revenue in keeping older hardware running longer, as an example.

Cisco and MaintenanceNet forged a partnership back in 2009 and through distributors have offered solution providers an automated way to improve service renewals and identify uncovered product opportunities.

The MaintenanceNet platform identifies customers with service contracts that are coming up for renewal, overdue, or with products that are not yet covered. The MaintenanceNet solution automated quoting, notifications, and, in some cases, ordering online. In a blog post by Debbie Dunnam, the senior vice president of Cisco Global Customer Success, said MaintenanceNet helps Cisco partners capture high-volume and low-dollar sales opportunities that may risk being overlooked. This streamlined process enables services contract opportunities to be pursued quickly and efficiently.

The plan now is for MaintenanceNet to join Cisco’s Global Customer Success organization, a group that works to improve customer engagements for the channel and customers.

“Just as MaintenanceNet’s business was built with and through partners, this acquisition demonstrates Cisco’s focus on serving the partner go-to-market strategy and its significant role in our customers’ success. While we have worked together for some time, I look forward to welcoming the MaintenanceNet team into the Cisco family as we continue to innovate and grow our business,” Dunnam added.