Scaling Partner Ecosystems: Lessons from Cisco & SonicWALL

Michelle Ragusa-McBain begins by looking back at the early days of the technology channel when companies like Cisco were defining what it meant to work with partners. At the time, value-added resellers (VARs) were the primary go-to-market route, and many vendors emphasized "partner-first" strategies. Michelle recounts how the Cisco ecosystem grew from its networking roots to encompass broader service offerings and solutions. She also shares a fascinating anecdote about the Internet’s origins, highlighting Cisco’s foundational role. As an early employee at Cisco, Michelle had a front-row seat to how infrastructure development created ripple effects that shaped the entire channel ecosystem.

As the industry matured, partner expectations and business models evolved. VARs transitioned into Managed Service Providers (MSPs) and later into Managed Security Service Providers (MSSPs), responding to changes in how customers consumed technology. Subscription and consumption-based revenue models started to dominate, driven by shifts in customer behavior and accelerated by digital transformation. Vendors were forced to become more agile, offering new support and enablement to maintain loyalty and performance. This period also saw the emergence of specialized partners, such as ISVs and integrators, who played crucial roles in multi-vendor deals. Michelle points out that partnerships became more about orchestration than linear sales.

Notably, the conversation emphasizes the rise of cybersecurity and AI as ecosystem drivers. Michelle articulates how cybersecurity has become central to every organization, regardless of industry. As cloud adoption grew, so did the need to protect vast amounts of digital information. Meanwhile, AI has moved from buzzword to operational necessity—reshaping everything from go-to-market strategies to partner enablement. The channel transformed into a dynamic ecosystem where multiple stakeholders collaborate. These changes laid the foundation for a more diverse, interconnected ecosystem that vendors must navigate to stay competitive and innovative.

Sugata Sanyal and Michelle discuss building a "partner-first" organization, especially as companies grow from mid-market players to global enterprises. Michelle introduces the role of the Chief Partner Officer and outlines the core responsibilities of building a scalable partnership function. Regardless of company size, success starts with understanding the buyer persona and defining the types of partners required to reach them. From there, companies must assess where they operate geographically and how different partner types — VARs, MSPs, GSIs, ISVs — can support expansion across regions. North America, EMEA, LATAM, and APAC each require tailored strategies.

One of Michelle’s key insights is the role of distribution and how it varies by region. In North America, companies can operate both through distributors and direct-to-partner channels. However, distributors often serve as the key connection point to customers and partners in Europe and Latin America. She contrasts traditional distributors (e.g., Ingram Micro, Tech Data, Arrow) with born-in-the-cloud players like Pax8, who have reshaped expectations around partner experience and operational agility. Companies must determine which distribution models support their product stack, customer profile, and go-to-market strategy while remaining adaptable as the market shifts.

In this section, the conversation also covers the importance of influence — particularly understanding where partners spend their time and whom they trust. Michelle emphasizes that companies must "fish where the fish are" by being visible in the right forums: events, online communities, podcasts, and more. Modern ecosystem leadership is not about managing linear sales but orchestrating relationships across a matrix of stakeholders. This includes influencers, professional services providers, marketing firms, and even law firms — all of whom can play a role in influencing a deal. Building a successful partner office requires holistic thinking and integrated execution.

Michelle delves into the operational core of partner ecosystems by discussing Partner Operations (Partner Ops)—a function she believes is still emerging. She emphasizes that most partner organizations are underinvested and under-structured, creating missed scalability opportunities. Using her experience revamping SonicWALL’s SecureFirst program, Michelle explains how to listen to partner feedback through advisory councils, surveys, and direct interviews. These insights become the foundation for building a program that aligns enablement, co-selling, and incentives in a consistent, data-driven way. It’s a strategic blueprint that allows organizations to scale without losing personal partner relationships.

A big part of that blueprint involves Market Development Funds (MDF), which Michelle argues are often misunderstood and underutilized. She discusses transitioning from proposal-based MDF models to point-based systems that reward actual partner contributions across the buyer journey. This could include social selling, thought leadership, customer enablement, and post-sales support. At Cisco, Michelle helped increase MDF utilization from 8% to 34% by shifting the mindset: MDF wasn’t a “reward” but a strategic investment. She also highlights partners' pain points, such as the upfront cost burden, and how vendors can simplify MDF to make it more accessible.

Michelle and Sugata reflect on the full partner lifecycle: target, recruit, onboard, enable, co-market, co-sell, incentivize, and accelerate. Michelle underscores that Partner Ops must own and orchestrate this lifecycle while collaborating closely with product, marketing, sales, and customer success teams. The most significant opportunities come from creating systems that allow partners to earn consistently — not just from closing deals but also from contributing to long-term growth. This holistic view of Partner Ops as an enabling function, rather than a back-office one, positions partner ecosystems as strategic growth engines within modern B2B organizations.

This section zooms into two transformative forces: AI and cybersecurity. Michelle opens with a strong statement: if you're not in security or partnering with someone who is, you're behind. The partner ecosystem now relies heavily on multi-layered security solutions, and vendors must figure out where they fit in this landscape. The field is crowded with 6,500+ cybersecurity vendors globally, so the challenge becomes differentiation. Michelle advises companies to focus on what they sell, who influences buying decisions, and how to co-market effectively in a competitive, trust-driven ecosystem.

AI, meanwhile, is radically changing how partners are enabled and educated. Michelle shares examples of innovative companies like BigSpring and 10x Exchange, which use AI to personalize partner enablement journeys. These platforms combine gamification, microlearning, and adaptive content delivery to ensure every partner receives the support they need based on their role, learning style, and pace. Instead of “one-size-fits-all” enablement, AI allows organizations to deliver targeted, meaningful training that increases retention and engagement. The result is smarter partners, faster time-to-value, and improved sales velocity — all critical metrics in a high-stakes ecosystem play.

Beyond just enablement, AI is touching every corner of partner engagement — from lead distribution to deal registration and predictive analytics. Michelle notes that generative AI is helping vendors provide 24/7 partner support, automate marketing content, and analyze deal flows in real time. These capabilities improve operational efficiency and empower smaller partner organizations to scale quickly without the traditional resource burden. The convergence of AI and cybersecurity is ushering in a new era for partner ecosystems — one defined by intelligence, agility, and high-impact collaboration. Companies that embrace this shift will lead the next decade of ecosystem innovation.

In the final segment, Michelle shares a deeply personal perspective on diversity and inclusion. As someone who was the first in her family to attend college and work in tech, she explains why representation matters at every level of the partner ecosystem. From her work on the CRN Women of the Channel Board to her role with Advancing Women in Tech and CompTIA, Michelle emphasizes that building inclusive ecosystems requires intention. Whether inviting diverse voices into partner advisory councils or mentoring future leaders, inclusion can’t be an afterthought — it must be embedded in the ecosystem’s DNA.

She draws a powerful link between distribution and diversity, calling distribution the “ultimate democracy” of the channel. Because distributors work with thousands of partners across all geographies and verticals, they naturally touch diverse organizations. By leveraging this scale, vendors can bring inclusive practices into their go-to-market strategy. Michelle also shares that diversity is not just about gender or ethnicity — it includes neurodiversity, disability, socioeconomic background, and thought diversity. Inclusive ecosystems are not only more equitable; they are more innovative and resilient. Studies show that diverse teams perform better; the channel is no exception.

Michelle closes with a message to future leaders — particularly young women and underrepresented individuals — encouraging them to find mentors, champions, and sponsors. She recounts how a single conversation with an alum changed her career path and why mentorship is a multiplier in tech. Her advice is simple yet profound: show up, listen, and uplift others. Companies that foster inclusive ecosystems will build stronger partner relationships, better products, and more sustainable revenue streams. Diversity is not a checkbox; it’s a business imperative. This final message reinforces that the future of the partner ecosystem must be both high-tech and deeply human.