Cisco buy-back plan aimed at four rivals
Migration programme intends to curtail specific business threats
Cisco has admitted it is operating a buy-back scheme to target Hewlett-Packard's (HP's) ProCurve, but claimed it is also hitting 3Com, Foundry and Nortel.
Last week resellers informed CRN that Cisco is targeting HP ProCurve with its Cisco Technology Migration Programme (CTMP).
But Luca Marinelli, EMEA managing director of channels for Cisco, told CRN: "We set up the CTMP in 1997. The first version's sales promotions were aimed at migrating customers from old to new Cisco product.
"We also wanted to give customers the chance to get value from other technologies, so we also offer migration for 3Com, HP, Foundry and Nortel products."
Marinelli stressed that the scheme also involves other channel incentive programmes such as the Value Incentive Programme and Opportunity Incentive Pro-gramme, and internet tools. CTMP will be reviewed in July 2005.
However, Cisco canned CTMP in 2001 following abuse of the programme by resellers. At the time the vendor claimed resellers were using CTMP to broker business deals with prices lower than the recommended Cisco levels, instead of basing deals on the value of the services.
Andy Palmer, UK managing director of Foundry, said the buy-back scheme sounds like wishful thinking.
"Cisco has a hard enough time stopping us from selling new kit, let alone buying our old products," he claimed.
Jon Weatherall, HP ProCurve UK and Ireland country manager, said HP has offered a buy-back programme for 18 months, but is not targeting specific vendors. "Globally, it doesn't surprise me that Cisco is looking at HP as a serious business threat," he said.
Separately, Cisco is to poll up to 40 per cent of its 8,000 EMEA resellers to find out how it can improve its relations with the channel.