Points mean prizes at HP
Vendor offers incentives in LAN battle with 3Com and Cisco
Hewlett-Packard (HP) has thrown down the gauntlet to networking rivals 3Com and Cisco as it aims to become number one in the LAN market.
HP, which is currently third in worldwide port shipments, according to researcher IDC, has bullishly said it plans to overtake 3Com by the end of this year and then overtake Cisco.
Jon Weatherall, procure networking country manager UK and Ireland at HP, said: "Cisco has been very successful as a business, but it has lost sight of the meaning of value for money. HP is aiming for the top spot."
HP has devised a new rebate programme in a bid to encourage more volume business and attract new resellers to its high end, Weatherall said.
The scheme will enable resellers to collect points, which can then be exchanged for prizes, such as holidays, vouchers and gifts.
The scheme can be run either by the reseller as a company, or by individual sales representatives.
"We are trying to change the long-term behaviour of channel salespeople. Often they would just sell what the customer asks for, but HP is asking them to put forward an HP bid as an alternative to 3Com and Cisco," Weatherall said.
The higher-end the product, the more points the VAR or individual will get. VARs can also use the points to get marketing activities from HP, which will then add 10 per cent to the number of points.
But Nick Watson, Cisco's unified channel director UK, said: "Our LAN market is as strong as ever, and we are continuing with lots of R&D investment to make sure our products keep ahead of the market."
Watson cited Cisco's recent announcement of a new incentives programme (CRN, 24 March) as proof that the firm is always looking for ways to increase margins for its channel.
Buddie Ceronie, area sales manager at 3Com, said he found the whole thing amusing.
"It is obvious that networking is not HP's core business, so this is pure ambition," he said. "We are very clearly number two and the primary competition to Cisco."