Cisco robbery raises channel margin fears

Cisco partners fear the market could be flooded with cheap kit after $188,000 (£126,000) worth of Cisco equipment was raided from reseller Damovo.

Police have confirmed that the gang that robbed Damovo’s warehouse on 18 December had targeted Cisco gear.

The six perpetrators escaped from the firm’s head office in Horsham, West Sussex in an unmarked transit van with data networking, voice services and router kit. Equipment from other manufacturers was untouched.

The incident occurred less than a year after robbers raided about $190,000 worth of Cisco equipment from VAR Repton in a targeted attack.

Scott Nursten, managing director of Cisco Gold partner s2s, urged the vendor to do more to ensure criminals do not see it as an easy target.

“It is easy for Cisco equipment to disappear because of the ubiquity of it, so the firm has a bigger problem than its rivals. But sometimes I feel that Cisco’s brand protection department could be doing more to tackle the issue,” he said.

Nursten added that he was concerned the stolen kit could reappear on the market at rock-bottom prices and erode margins in the channel.

A police representative confirmed that Cisco has been handed details of all the stolen items and their respective serial numbers.

Channel consultant Bernie Dodwell, said: “Cisco has a tight policy in developed markets. The kit will probably end up in a less stable market where fewer questions are asked.”

Jane Tingle, director of brand protection for Europe at Cisco, said: “Cisco’s brand protection team is committed to the integrity and quality of Cisco technology and services."