Cisco expands "Cisco Start" SMB strategy, aiming for offices with several people

On April 11, 2019, Cisco Systems announced the expansion of its product portfolio and the establishment of an SMB-specialized sales department in the "Cisco Start" series for the SMB (SME, 100 employees or less) market. In terms of products, as new products for smaller offices / stores (25 employees or less), the wireless LAN access point "Cisco Meraki Go" that adopted the "DIY model" set up by e-commerce sales / customers themselves and " Cisco Webex is launching a small-group edition.

Overview of the newly released "Cisco Meraki Go".Cloud-managed wireless LAN access point targeting offices, restaurants, retail stores, etc. with 25 employees or less

Irving Tan, SVP Chief of Operations, Cisco Systems, USA

Michiko Kamada, Executive Officer, SMB / Digital Business Development, Cisco Systems Japan

Further expand your Cisco Start product portfolio, including Meraki and Webex

Cisco Start is a product brand that Cisco has been developing for the SMB market since 2015. It is positioned as a product group that provides a secure and stable business network that is simple and easy to operate even in small and medium-sized enterprises that do not have a dedicated IT staff. Another point is that it uses cloud technology like Meraki, eliminating the need to introduce on-premises managed products.

With this announcement, the Cisco Start product portfolio has been expanded. In the Meraki series, which can be set, managed, and monitored via the cloud, a new version of the IP security camera "Meraki MV" and a layer 2 switch "Meraki MS120 switch" have been added. In the Webex series of web conferencing systems, the device "Webex Room Kit Mini" with a built-in camera / microphone / speaker that can be installed in a meeting space for up to 5 people, and the device "Webex Share" that allows one-push sharing of document screens on PCs / smartphones. Has been announced.

In addition, the security service "Cisco Umbrella" that prevents connections to dangerous sites using DNS has been translated into Japanese and the support system has been strengthened to make it easier for SMB customers to use. In addition, the latest router "Cisco 900J" has been improved in performance and size. "Series service integrated router" has also been added to the product lineup.

New products added to the Cisco Start portfolio.These products will continue to be offered via sales partners

"Meraki Go" targeting "several employees" and "DIY introduction"

In addition, a new lineup of products targeting small businesses, start-ups, and sole proprietors with 25 or less employees, which is smaller than the SMB market, has been added. Until now, Cisco Start products have been sold through partners (distributors), but these products are characterized by being sold directly via e-commerce. It is a "DIY model" in which the user who purchased the product also sets up the product.

The first product, Meraki Go, is a 2.4 / 5GHz wireless LAN access point whose main target is small offices and stores. It is a mechanism that allows easy setup and operation monitoring using a dedicated smartphone application. There are two types of main units, an indoor model (GR-10) and an outdoor model (GR-60), which operate with power supplied from a PoE switch or power adapter.

Indoor model (GR-10) and outdoor model (GR-60) of wireless LAN access point "Meraki Go"

At the time of setup, the Meraki account and the Meraki Go main unit are linked by starting the smartphone application and scanning the two-dimensional code attached to the main unit with the camera. After that, connect Meraki Go to the Internet, set the SSID and connection password, and you're ready to go. Cisco claims that "the setup is completed in 5 minutes after opening the box." For example, you can register multiple Meraki Gos (up to 20), such as inside / outside the store, and set them up together with the same network settings.

Meraki Go supports up to four SSIDs, which can provide separate SSIDs for traffic such as "for employees," "guest Wi-Fi," and "for POS terminals." You can limit the bandwidth used for each SSID, device, or application (video, file sharing, SNS, etc.), or set an access block to a specific website (domain). Guest Wi-Fi has a "landing page" function that displays the store logo and message when connecting, redirects to the store's website, and a "client isolation" function that prohibits communication between connected devices and enhances security. And so on.

From the app, you can check information such as network usage status (traffic transition, number of connections, application type, etc.) and details of connected devices (device name, OS type / version, etc.). Since this information is collected in the Meraki cloud service, it is possible to check the operating status of the network and change the settings even when you are away from home.

In the commercial video, Naomi Watanabe impersonates a cafe owner / sports gym owner / designer and emphasizes that Meraki Go can be easily set up by anyone (from YouTube, Cisco Japan channel).

You can check the network usage status from the smartphone app.In the case of a smartphone, you can set the wireless LAN connection just by reading the two-dimensional code.

Meraki Go will be available online on Amazon.co.jp from May. In this announcement, the tax-excluded price is "starting from 20,000 yen" for the indoor GR-10 and "starting from 30,000 yen" for the outdoor GR-60 (both with a one-year Meraki subscription). ).

According to Michiko Kamada, Executive Officer in charge of SMB and digital business development at Cisco Systems Japan, the sales channel for this product will start only with Amazon, which has a high market share in online sales. After the start of sales, the policy is to expand the sales channel based on the needs of small SMB customers. She doesn't care about online sales, but because it's a DIY model product, she says, "It's basic to consider sales channels that don't have SI or managed services (like the traditional sales model)." Stated. In addition, Cisco is in charge of support such as troubleshooting.

Meraki Go's target customer base.We mentioned three small offices that handle important data, retail stores that are increasingly using wireless LAN devices for business, and the hospitality industry such as cafes and hotels with high guest Wi-Fi needs.

Start using online purchase, Webex is easy to introduce for small teams and individuals

Another web conferencing / collaboration tool, Webex, will now offer a smaller license than before. The smallest "Cisco Webex Starter" offers up to 10 host licenses (conference organizer licenses) and up to 50 participants per conference. This is sold online via the Cisco website, and is characterized by the fact that "even in offices with 10 people or less, you can purchase online and use it immediately" (Mr. Kamada).

The price excluding tax is 1700 yen per month for the above-mentioned Webex Starter, 2250 yen per month for medium-sized (up to 50 host licenses, up to 100 people per conference), and 2250 yen per month for large-scale (up to 100 host licenses, per conference). Business of up to 200 people) is 3400 yen per month.

In addition, a 30-day free trial will be offered, but you can continue to use it for free for meetings of up to 3 people after the trial period ends. "First of all, I would like you to try it (for SMB customers) and take advantage of collaboration. If using it improves productivity and the customer's business expands, we will have more proposals. You will be able to do it "(Mr. Kamada).

Cisco Webex adds a small license for small teams and individuals.Another point is that you can purchase online and start using it immediately.

Established a sales organization specializing in SMB, including vehicles promoting Cisco nationwide

At this recital, it was also announced that a new sales department for the SMB market (SMB / digital business development) was launched. Mr. Kamada will be dedicated to SMB, overseeing the business strategy and promoting sales.

Mr. Kamada said that Cisco Start's business is "extremely growing", especially with the recent product lineup, with customers deploying Cisco Start products in full stack as well as part of the network. I introduced that it is increasing. According to a document presented by Dave West, president of Cisco Japan, sales of Cisco Start products have increased approximately six-fold between 2016 and 2018.

On the other hand, Mr. Kamada explained that while developing the business of Cisco Start for more than three years, some customers have not (cannot) outsource network construction and operation. In very small offices and stores with a few employees, there is a certain number of needs to build a network by themselves due to budget constraints. The traditional product sales model through partners is not suitable for such a customer base. Therefore, he explained that he has newly prepared the aforementioned Meraki Go and the online sales version of Webex.

"This time, we will expand our product portfolio in a way that specializes in small businesses, create a new sales system, and strengthen marketing," (Mr. Kamada).

This time, the policy to strengthen the sales strategy by specializing in smaller companies was shown.

Regarding marketing, the company will strengthen measures to make SMB customers feel closer to the Cisco brand, which had a strong image of being a "network product for large companies." As one of the concrete measures, the promotion vehicle "Cisco Network Experience Vehicle (Cisco NEV)" of Cisco products / services was unveiled. NEV's vehicles are equipped with collaboration products such as Meraki network products and the "Cisco Webex Board," providing an opportunity to directly touch and experience Cisco products. For example, he plans to go all over the country, such as venues for sporting events and live events, and university campuses, and actively promote them.

"Cisco Network Experience Vehicle (Cisco NEV)".We also envision network service support activities in the event of a large-scale disaster.

Attending the recital, Cisco Systems SVP Irvin Tan said that SMB's business is also in an era where digital transformation (DX) is needed, and Cisco is packaged in it in a simple and secure manner. He explained that the solution will be provided in a form that suits the Japanese corporate culture. With the introduction of the Cisco Start product line, he said, "SMBs will be able to focus on their business without having to worry about IT."

In addition, Mr. West, the president of Cisco Japan, said that "Small and medium-sized enterprises (excluding salary / accounting operations) that cannot utilize IT for business processes and business operations" still account for more than 80% as an estimate based on a survey by the Small and Medium Enterprise Agency. He pointed out that the cause is the complexity and difficulty of IT. "The numbers show that Cisco must continue to innovate," he said, adding that he wants to further accelerate the Cisco Start portfolio.