Cisco kicks HP off partner programme

Networking vendor will not renew HP's systems integrator contract after April as rivalry intensifies

Keith Goodwin: It simply no longer makes sense to provide these benefits to HP

Cisco is booting HP off its channel programme to stop its rival gaining access to product roadmaps and partner profitability initiatives.

Keith Goodwin, senior vice president of Cisco’s worldwide partner organisation, confirmed yesterday in a video statement that the vendor will not renew HP’s systems integrator contract when it expires on 30 April 2010.

This means HP will no longer be a Cisco Certified Channel or Global Service Alliance partner.

The split had been anticipated after Cisco’s recent move into the server arena pitted it against one-time ally HP. Cisco has also ratcheted up the rhetoric in recent months, promising to take a more aggressive stance against its competitors.

Goodwin said: “Over the past few years our relationship with HP has evolved from a partner to companies with different and conflicting visions of how to deliver value to customers.

“Despite this shift in industry dynamics, HP had remained a Cisco Certified Channel Partner. Being a Cisco Certified Channel Partner has numerous benefits including access to proprietary information (such as product roadmaps) and partner profitability initiatives. Given the evolution of our relationship it simply no longer makes sense to provide these benefits to HP.”

According to Cisco’s Partner Locator, HP is currently one of just 35 Cisco Gold partners in the UK.

Goodwin stressed that Cisco was already in talks with HP to guarantee business continuity for existing customers.

“Our commitment is clear: we will continue to work with HP wherever our customers expect it and where it makes sense for our business,” he said.

About 80 per cent of Cisco’s business travels through its 12,000 Certified partners and analysts said Cisco’s remaining top resellers – such as Dimension Data (Didata) – could benefit from HP’s expulsion.

Adam Jura, senior analyst at Ovum, said: “With this change in direction, Cisco will still require someone to implement its products going forward.

“Hence, the major winners out of this will be the remaining partners, in particular Didata (incorporating Datakraft), which is continuing to impress in its performance in the Cisco products and solutions implementation space.”