Wednesday, August 3, 2011

#Cisco makes too much margin... a recent customer example

Or... they are just scared.

We're involved a campus refresh for a large enterprise customer.  Its just one of their campus...5 buildings...maybe a couple of thousands ports. Not big, not small.

Cisco is going to "give away for free" (2) Cisco Telepresence systems and a starter UCS system.

But..Mr. Cisco, why not just offer me switching products at comparable prices to the competition?  I already use  HP for servers and Polycom for video conferencing... so this gear is just going to sit in a warehouse.  I'd much rather just get the switching products for a fair price.

But... unfortunately when you have margins on products of over 60% and you want to protect those margins..that is what you do.  Cisco..the market is changing!

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