Some Hewlett-Packard (HP) resellers believe the vendor's Edge network architecture strategy has under-priced its higher-end ProCurve switches.
HP, which unveiled the strategy recently, has set itself the goal of overtaking 3Com to become the second largest player in the European LAN switch market within 12 months. But while its competitive price point may be attractive to end-users, some VARs are not convinced.
One unnamed reseller said: "The 5300 switches are too feature-rich to be so low-priced. HP could have got away with another 10 to 15 per cent."
Another VAR said: "My biggest problem with HP is that the boxes are too cheap. They are feature-rich and we could return a hell of a lot of margin if HP put the prices up."
But Jon Wetherall, UK business manager at HP's networking division, said: "We offer good margin. We're not over-distributed and our list price is accurate. We have the SME market covered. It's the enterprise where we need to expand."
Wetherall said he and his team were talking to between 10 and 12 resellers from Compaq's channel, which currently sell Cisco and/or 3Com kit.
But resellers claim the price differences between Cisco and HP kit means they risking losing revenue if they switch to HP.
However, one source familiar with HP believes its strategy may benefit resellers faced with customers looking to cut costs.
"Sometimes you must accept that you can get a good enough suit from Marks & Spencer; that you don't have to go to Armani," said the VAR, which sells both vendors.
"Cisco is a name; a badge. ProCurve doesn't have the name, but it does have the necessary performance."
MSP plans to use new acquisition to expand its security offerings
Reseller also saw its operating profit fall five per cent in its financial 2017
Wendy Bahr to bring 18-year spell at networking giant to an end
AdEPT says latest purchase will push revenue beyond £50m