Cisco woos second-user brokers

Strategy designed to curb buying through unofficial channels

By Doug Woodburn

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29 Sep 2008

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Cisco is encouraging unauthorised brokers to join its official channel programme as part of an attempt to crack down on grey market activity.

Zycko’s second-user equipment arm, Hardware.com, is among the firms Cisco has approached about becoming a top-level Gold partner. This would net them higher discounts, but would force them to buy through official channels.

David Galton-Fenzi, group sales director at Zycko, said that Cisco is now taking a more realistic attitude towards the second-user market, which he said is worth several million pounds per month in the UK.

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“Cisco’s strategy in the past has been to belittle the after-sales market. Now it has realised it should embrace companies offering legitimate services,” he said.

Galton-Fenzi added that he would look at whether or not becoming a Gold partner was commercially viable and would allow Zycko to retain its services-led edge.

A Cisco broker who wished to remain anonymous, said: “There has been a reshuffle within Cisco’s management. The new guys understand the channel a bit better and are looking to work with firms like us.”

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