Cisco cancels trade-in programme

Vendor cites abuse by resellers

Cisco has dropped its Competitive Technology Migration Program (CTMP), amid claims that resellers were abusing the scheme.

The vendor claimed that more and more resellers were using CTMP to broker business deals with prices lower than the recommended Cisco levels, instead of basing the deals on the sale of value-added services. As a result, Cisco has cancelled the programme internationally with immediate effect.

CTMP was launched three years ago to provide resellers with additional hardware discounts by allowing them to trade in competitors' systems for Cisco equipment. The vendor said that it will consider individual trade-in cases over the telephone. Its scheme for trading in old Cisco equipment for new will remain in place.

An internal statement read: "We believe resources are best spent on providing customers' peace of mind. For that reason we continue to offer trade-in accreditation on Cisco equipment."

James White, head of 3Com's international channel market, said he was surprised by the decision. "It's a time to support resellers, not to harm the majority for the actions of a few," he said.