Netgear to cut prices on switches

VARs set to reap the rewards as networking vendor drops prices for switch product range

Netgear has lowered prices for its switch range, as the vendor looks to improve channel ties.

Netgear said the price cuts on its secure managed and unmanaged SME networking products will enable improved margins for SME networking resellers, and that channel recruitment is still vital to future plans.

Price cuts will also affect new products, such as its 24-port rack-mount switch and its 48-port smart switch.

David Rennie, channel sales manager at Netgear, said: “These switches are where we have come from as a company, and we looked at the competition prices from the likes of D-Link and 3Com and plan to take the fight to them.”

Rennie feels the reductions underline a dedication to building channel bridges and the vendor can fuel growth with improved reseller relationships.

“One of our biggest drivers is looking for new VARs and we are putting a lot of resource behind our reseller channel.

“Our growth should be around 35 to 40 per cent over the next couple of years, and to do this we need to differentiate ourselves,” said Rennie.

He added a move into voice over IP (VoIP) next year is planned, with this area vital to Netgear’s potential expansion.

“We have 3,500 UK and Ireland VARs registered and we are enlisting all the time,” he added.

Keith Humphreys, managing consultant at research firm EuroLAN, agreed that reseller recruitment will be an important aspect to Netgear, but does not support the price reductions.

“Netgear sales have been driven by distribution and now they want more direct contact with VARs.

“That aspect is correct, but giving partners more money for marketing support to retain margin is a better idea.

“The competition will react and we can probably expect price reductions from them,” said Humphreys.