VARs and ISVs are being brought even closer together by Cisco Systems, as it looks to drive further into the applications space.

Cisco announced April 10 at its Partner Summit in Honolulu that it is opening up its ISR (Integrated Services Router) to third-party developers and customers. ISR and WAAS (Wide Area Application Services) are now open to application integration as part of Cisco's Empowered Branch initiative, which it launched in 2007. To enable this integration, Cisco has launched the Cisco Application Extension Platform, providing open, Linux-based ISR hardware modules for application development.

Cisco is encouraging ISVs and developers designing custom applications to look for a tie-up with its VARs, and vice versa. "This will open up both sets of customer bases and help them to differentiate with customer applications tailored to different verticals," said Inbar Lasser-Raab, senior director of access routing and switching at Cisco.

Cisco said those partners that have already sold integrated applications with its network platform have on average a 35 percent higher services mix to their businesses and 20 percent higher gross margin.

To help unite ISVs and solution providers, Cisco has its ISPN (Industry Solution Partner Network) program, launched in Dublin in September 2007. The program helps VARs and ISVs develop relationships by finding each other, providing training and marketing and also providing financial incentive to solution providers that work with ISVs.

Derek Downs, president of Cistera Networks, has been a member of the ISPN program since the beginning. He said his company joined because it wanted to add advanced applications to its IP telephony technology. "ISPN has allowed us to do this and more. We now have more applications and more relationships, which helps us to expand our customer base," Downs said.

See these related stories also from the partner summit:

Chambers Tells VARs to Catch New Tech Wave

Cisco Unites VARs, ISVs over Integrated Apps

Cisco Portal to Help Partners Recruit Talent

Cisco Seeks Partner Growth

Cisco Plays Cupid for VARs

Analysts: Size Matters in Cisco Data Center Play

Cisco's Data Center Luau

Cisco Sets Sights on the Data Center

Top Channel Executives You Need To Know at Cisco