Case Study

Optimizing Cisco Sourcing and Channel Strategy

Problem

A global enterprise engaged TC2 to develop and execute a dual-track sourcing strategy for a complex Cisco spend profile that required parallel negotiations with Cisco and multiple value-added reseller channel partners. The client wanted to improve pricing, support structures, and reseller economics with a holistic sourcing and negotiation strategy, rather than settle for isolated concessions.

Because the channel structure was a major part of the commercial picture, the work required a full market process for value-added reseller services with a particular focus on Cisco resale. The goal was to improve economics directly with the OEM, while also creating stronger accountability through the reseller relationship.

"When a technology spend category runs through both the OEM and the channel, the best outcomes come from addressing both at the same time rather than negotiating each side in isolation."
- Ben Fox, Managing Director

Solution

TC2 built and led a dual-track strategy. On one track, we supported an extensive renegotiation of the client’s relationship with Cisco, spanning maintenance, lifecycle/solution support, software licensing, and product discounts. On the other, we ran a turnkey RFP for value-added reseller (VAR) services, with seven bidders competing for the client’s Cisco resale business. 

Across both workstreams, TC2 managed the sourcing process end to end. We structured the RFP, managed the bidders, evaluated responses, and led the formal negotiation process with Cisco and the VAR participants. The objective was to improve front-end discounts while also tightening the commercial model around support, ordering, delivery, project services, and ongoing reseller performance.

Results

Increased discounts across the portfolio
$7M
In software and maintenance savings
Cisco product and maintenance mark-ups eliminated

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