Cisco, NEC partner for multiservices

Cisco Systems, which has grown significantly through acquisitions, is attempting to bring several of its existing data products under a multiservice umbrella. To that end, Cisco will announce this week the formation of its strategic multiservice channel development initiative.

NEC Business Network Solutions Inc. will be the first partner in the group. NEC's participation will allow its legacy telephone customers to optimize the use of their networks. The initiative's goal is to build both companies' channels and develop multiservice solutions, said Scott Ferguson, director of channel programs at Cisco.

"As the market emerges, it's not just enough to produce the best products, you also have to have the best channels and the best channel strategy to develop and achieve a high level of customer satisfaction," Ferguson said.

Plans call for the development of programs to recruit and build channels to address the future multiservices market, including design, implementation, operation and support.

Cisco recognizes that the market for multiple services is going to be much greater than pulling together services across a backbone and network, Ferguson said. "It's very software oriented, more about delivery of services and desktop than about the combination of all those different forms of traffic over the backbone," he said.

The channel development venture is aimed at helping the members' sales staffs understand how to make the products work together, said Kimberly Knickle, senior analyst with AMR Research. "People know the telephony side, and people know the Cisco routers. It needs someone to pull it all together."

The fact that the channels will be required to have in-depth knowledge of more than just a few products may present a problem. However, partnering with a company of Cisco's industry weight is a coup for NEC, Knickle added. "Cisco has just so much clout here...just being an early partner generally makes NEC look good. If Cisco tapped them on the shoulder there must be reason."