As more of the business models in IT shift to a recurring revenue model for products, software, solutions and services, the ability to easily implement, track, manage and renew contracts is critical to maximizing revenue potential. These transitions create opportunities and change for our customers, our partners, and for Cisco.

That is why I am pleased to announce Cisco's intent to acquire MaintenanceNet, a privately held company providing a cloud-based software platform that uses data analytics and automation to manage and scale attach and renewals of recurring customer contracts.

Since 2009, Cisco and MaintenanceNet have worked together to offer Cisco distribution and reseller partners a simple and automated way to improve service renewals and identify uncovered product opportunities. How does this work? MaintenanceNet's software identifies customers with service contracts that are coming up for renewal, overdue, or with products that are not yet covered. Their low-touch solution enables automated quoting, notifications, and, in some cases, ordering online. This helps Cisco partners capture high-volume and low-dollar sales opportunities that may risk being overlooked. This streamlined process enables services contract opportunities to be pursued quickly and efficiently.

MaintenanceNet will be joining Cisco's Global Customer Success (GCS) organization, a group dedicated to improving customer engagement and delivering a coordinated, end to end experience to our partners and customers. This acquisition is a critical component of our strategy for GCS to simplify and digitize our business processes.

Just as MaintenanceNet's business was built with and through partners, this acquisition demonstrates Cisco's focus on serving the partner go-to-market strategy and its significant role in our customers' success. While we have worked together for some time, I look forward to welcoming the MaintenanceNet team into the Cisco family as we continue to innovate and grow our business.

Cisco will pay$139 million in cash and retention based incentives to acquire MaintenanceNet. The acquisition is expected to be complete in the first quarter of Cisco's fiscal year 2016.