Cisco (NASDAQ:CSCO) recently released a new cloud-based service, called OnPlus, that helps its small-business partners provide network assessment, management and advisory services to their customers more easily.  One of the major features of the new offering is that it allows value-added resellers (VARs) the ability to provide remote visibility of a customer’s network and attached devices. Cisco primarily competes with other network equipment and service providers like Juniper (NYSE:JNPR) and Alcatel-Lucent (NYSE:ALU).
We currently have a $21.21 Trefis price estimate for Cisco, about 15% above the market price.
OnPlus will Increase Cisco’s Channel Partners’ Business Capability
OnPlus is part of Cisco’s Partner Led initiative, a $75 million effort announced by the company earlier this year, which will provide services and support through 2012 to help channel partners increase their business capability.
Using OnPlus, a VAR can remotely monitor one of its customer’s networks, via a small OnPlus Network Agent appliance that is plugged into a switch or router on a customer’s network. The Agent transmits data about the network to a secure Cisco data center, accessible by the VAR.
OnPlus also allows VARs to remotely troubleshoot and configure manageable network devices. Being a cloud-based service it enables VARs to manage their network services for customers from anywhere, quickly.
Network Services Revenues to Get a Boost
By backing its small-business partners, Cisco will be able to quickly create and expand their offerings in network management and advisory services. With the new service being priced at a modest $250, including a three-year OnPlus subscription and a Network Agent appliance, for covering management of one network, Cisco is going for volumes eying solid adoption by VARs in the U.S. and Canada. This will help increase Cisco’s network service revenue going forward.Notes: