5/6/2003 -- This week, along with a new portal for its certified community, Cisco is launching a new learning credits program, which will give companies the ability to bundle training into the purchase of hardware and software.

"Our sales reps are good at 'vacuuming up' all the dollars whenever they sell hardware. They haven't sold training at all," explained Lyle Spiers, director of business and partner development for Cisco's Internet Learning Solutions Group (ILSG). "This program allows our direct sales force and channel partners to sell learning products at the point of hardware."

Although the idea may sound obvious, Cisco hasn't traditionally integrated training with product sales. That means that an organization that has just gone through its internal authorization process to gain approval to purchase new capital equipment may have to return to its management to get permission to obtain training on that new equipment. With training budgets drastically reduced in the current economic climate, this second approval may not be an easy one to obtain.

Learning Credit Management Tool: Companies can track the training staff members have received against the total amount of training purchased from Cisco. (Click on graphic to view larger version)

Cisco's new approach integrates the training into that initial purchase order. The customer will obtain "learning credits," which it then manages through a new tool available on Cisco's Web site (see graphic). The credits allow the customer to obtain training from the Cisco authorized training partner of its choice -- either instructor-led, e-training or in another form.

Cisco's Learning Credits Management Tool gives an up-to-date accounting of which individuals have enrolled in specific programs and helps them identify additional educational requirements, according to Molly Mount, marketing manager for the credits program. The same tool allows the company to monitor who has obtained training, how many credits remain in the account and what kind of training the tech staff needs based on the results of assessment tests.

The credits, worth $100 each and available in packs of 100, 500 and 1,500, expire a year after they've been issued. Before the expiration occurs, Cisco's sales team and the particular designated training partner chosen will be able to notify the customer of outstanding credits, Mount said.

According to Mount, the new approach has resonated with customers, especially among education, government and large enterprise organizations, where the budget is allotted for the year.

She said discounts will be available for larger sizes of learning credit "packs," although the reduced rates don't show up on Cisco's Web site "because that comes through the reseller." She said that a seven percent discount would be applied in purchases of the 500 credit pack; a 10 percent discount would apply to the 1,500 credit pack.

Learning partners are "very excited about this," she said, particularly in terms of having "feet on the street singing the value of training."

Cisco said it would roll the program out worldwide by August.

Learn more here. -D.S.