Cisco Finally Calls It Quits with HP

Event Summary

February 18, 2010 - Cisco has decided not to renew HP’s system integrator contract, meaning that HP will no longer be able to sell Cisco equipment.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Cisco’s decision to decertify HP as a reseller partner, because the relationship has been on thin ice since Cisco’s decision to enter the x86 server market. In addition to that, HP is in the process of purchasing 3Com and the two companies are clearly competitors. The latest move by Cisco to not renew HP’s systems integrator contract is simply the tombstone on what was already a dead relationship.

• Vendor Importance: High to Cisco, because as a Cisco Certified Channel Partner, HP had access to Cisco’s product roadmaps. That would be a huge advantage for HP and it is clear that had to end.

• Market Impact: Low on the Ethernet switching market and the data center markets, because Everyone knew this was coming and the effects will only really be felt at Cisco and HP.

CLIENTS ONLY

Current Perspective

Competitive Strengths and Weaknesses

Response & Recommendations

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