The rivalry between HP ProCurve and Cisco continues to heat up. According to a leaked email from ProCurve, Cisco has been telling its channel partners to match any price that ProCurve offers.
ProCurve appears to be welcoming this. According to the email, ProCurve will publicize Cisco’s pricing scheme. The rationale? ProCurve figures that as more Cisco customers hear about this tactic, more of them will come to ProCurve for a price quote. At the very least, this will give ProCurve a chance to show Cisco customers what it has to offer. It will also cost Cisco a lot of money, since ProCurve generally offers much lower prices.
So the key takeaway here is – if you’re a Cisco customer and you’re looking to refresh part of your network, go talk to ProCurve and see what kind of price it can offer. Even if you decide to stick with Cisco, you’ll at least have a chance at getting a better price from your incumbent vendor.
If you think Cisco has grown too large, too unwieldy, too fragmented in its offerings, guess what? Cisco may agree with you. Or at least the company wants to be sure it doesn’t live up to these criticisms.
According to an internal memo from Cisco vice president of worldwide operations Rob Lloyd examined by SearchNetworking.com, Cisco is launching an immediate reorganization of its sales and channel-facing team to streamline it around specific architectures and work toward “One Cisco.” This includes the launching of new sales theaters and a partner organization offshoot.
The memo, dated June 30, begins as follows:
“Team, as we prepare the sales organization for FY’10 and plan for renewed growth in the upturn, it’s time for bold moves, breakaway strategies and transformation. Our vision for Worldwide Sales is to create a next generation sales experience …
“To realize our vision, we need to think and act as ‘One Cisco’ — embracing our collaborative business model to deliver an experience that’s seamless, global, faster and virtual.”
Wow, Cisco even speaks marketing gobbledygook to its own kind. I thought they only fed that stuff to the press! Shwoo, what a relief!
Now down to the changes:
1. Cisco will launch three new sales theaters (in addition to the current five geographic theaters) to represent its largest market segments in the U.S. and Canada. The new theaters will be: U.S. Enterprise, U.S Commercial and Canada Market Segment Theater, led by SVP Chuck Robbins; U.S. Public Sector Market Segment Theater, led by SVP Bruce Klein; and U.S. Service Provider Market Segment Theater, led by SVP Nick Adamo.
Externally, the company will still report financial results according to the five existing geographic theaters.
2. Cisco will launch a new Global Enterprise Theater. This move is part of an effort to broaden Cisco 3.0., a 2-year-old strategy to globalize Cisco’s U.S. corporate culture and better reach emerging markets by placing top executives throughout the world. SVP Nick Earle and VP Woody Sessoms will jointly lead that theater.
3. Cisco will also align sales around six architectural plays: Service Provider IP, Collaboration, Data Center, Borderless Networks, Small Business and Consumer. Sales and services teams will work in teams to support these architectures.
4.Look out solution providers! There will be a realignment of the Worldwide Channels organization with an effort to recruit more partners to the already mammoth Cisco channel as it focuses on selling whole architectures. The restructuring also includes a new Strategic Partner Organization that will “manage specific accounts from both our Worldwide Channels and Strategic Alliances organizations.” This is apparently another move by Cisco to place specialized care on its largest and most sought-after deals and the partners that serve those accounts.
5. Finally, the company will capitalize and provide support and consultative services for new solutions, including Smart Grid, Smart Connected Communities and managed and cloud services. The company will focus on tighter integration of product and services sales teams. It is unclear where, if anywhere, channel partners will fit into that services play.
So what does all this mean for end users?
As administrators, managers and engineers in Cisco shops work to ready the network to connect storage, data center and the core, it could mean the sales and services process will be simpler and more clearly directed.
But there are critics.
As one Cisco channel partner put it: “I don’t hear any big blow ups, I hear window dressing.
“Basically, they’ve got 30 days to reinvigorate and refresh everybody to get them on board in time for Q1. This is one way to do that.”
He tempered the statement by saying Cisco’s sales team is “aligning” with the company’s technology strategies, which is now focusing on architectural plays and borderless networks.
In a new semi-regular feature on The Network Hub, I’m going to provide a quick run-down of newly announced wireless LAN projects. I get a lot of press releases from WLAN vendors about customer wins. I don’t get to write about all of them, but I can at least offer you a quick summary of the latest decisions your peers have made.
First up is John Marshall Law School, which is deploying an 802.11n wireless LAN network from Aerohive Networks on its Chicago campus. The school is replacing a legacy WLAN from Airspace (acquired by Cisco in 2005). The old system was presenting interference and attenuation problems within the school’s century-old buildings. Centralized management was also an issue. The school chose Aerohive from a short list that also included Aruba, Meru and Xirrus. The school chose Aerohive for its ease of deployment, controllerless architecture and wireless mesh capabilities, according to the case study.
Also this week, Aruba Networks announced that Virginia Union University has chosen their 802.1n wireless LAN to retrofit the wireless network on its 84-acre campus in Richmond (Click on this link for more information on Aruba’s specific solutions for the education market). The school had a network of independent, “Fat AP” access points that lacked centralized management capabilities and performance. Robert Gray, the schools IT director, said he chose Aruba’s AP-125 access points for their coverage and range. He is also using some of Aruba’s advanced management technologies, such as Adaptive Radio Management, Aruba’s policy-enforcement firewall and the AirWave Wireless Management Suite.
Would the real second fiddle please stand up and take a bow?
This week both Meru Networks and Aruba Networks have issued press releases claiming that they hold the second biggest share of the 802.11n wireless LAN market. Not only that – both vendors are citing the same research: Dell’Oro Group’s “First Quarter 2009 Wireless LAN Report.”
Yesterday, Meru announced that it had earned 12% of total vendor revenues for 802.11n products, ahead of Aruba (the long-standing second-place WLAN vendor).
Today Aruba sent out its own press release refuting Meru’s claim. Aruba claims a 15.5% market share. In his email, Aruba Head of Strategic Marketing Michael R. Tennefoss wrote: “Yesterday Meru issued a press release claiming that it had displaced Aruba from the #2 position, a statement not born out by the facts as Meru neglected to include Aruba’s substantial OEM sales.”
I’ve left a message with Dell’Oro’s president, Tam Dell’Oro for some clarification on this. I’ll update later with her response.
Recently SearchNetworking.com ran a news story highlighting the emerging skills necessary for network engineers and administrators to survive. The article summoned an outraged call (I believe the word he used for his temper was simmering) from a network engineer at a global firm. He was appalled that any network engineer or administrator would not already come equipped with the skills we outlined.
The story in question called on networking professionals to train themselves in application management, cloud computing, security – a lot more than providing simple IP pipe access.
“Opening dumb pipes is for cable boys. If you don’t know this stuff already, you’re not an engineer,” my annoyed friend said. “You’ve set the bar too low.”
My first thought? Do you really believe that all high level network professionals are ready to push into emerging technologies without some urging?
My second thought: What does this guy have against cable boys? And isn’t that as un-PC as you can get in the world of networking?
But that’s not what he meant.
“The assumption of the story should have been that the network is seeing a demand for more senior level network administrators,” he said.
Sound a bit arrogant? Maybe, but he explained that a real network engineer, administrator or manager is a homegrown product that starts as a cable boy and listens to others to learn. Real engineers, he said, don’t get one or even two certifications and settle for what vendors feed them.
As they grow, they find the humility to reach across IT silos and get over networking protectionism to learn more about complex technologies that increasingly sprawl across departments.
At every level of the networking team, a professional will find this is the time to form alliances between systems, security and networking groups.
“If you have one guy who does firewall and that’s all he does, you’re going to have a problem,” he said.
What’s more, if these departments don’t approach the C-level executives together, they are not likely to get the resources and support they need to implement complex technologies.
“If you’re not working as an alliance, you’re setting yourself up to be outsourced,” he warned.
The Ethernet Alliance has issued a call for papers for an upcoming Technology Exploration Forum on 40 and 100 Gigabit Ethernet. The forum is scheduled for Sept. 15, 2009 in Santa Clara, Calif. The forum will be open to non-members of the Ethernet Alliance. The event is intended to be a discussion on what additional work needs to be done on the standards beyond the physical layer specification of IEEE P802.3ba
If you want to speak at the forum, submit a proposal. Find details at the link above.
Juniper Networks scored a big customer win this week, announcing a deal with New York Stock Exchange (NYSE) Euronext. NYSE Euronext is building two new data centers in New York City and London that will support several billion daily transactions across different geographies and asset classes. This is part of the NYSE’s effort to consolidate its 10 global data centers down to two.
In a joint press event, Juniper and the NYSE claimed that the 10 Gibabit Ethernet (GbE) network infrastructure in the data centers will support internal round-trip latency of 50 microseconds. The data centers will have EX 8216 chassis switches in their cores and EX 2500 top-of-rack switches providing access to 10 GbE servers. The data center designs also call for the use of Juniper’s MX Series Ethernet Services Routers.
One interesting bit of information which came to my attention with this release is that the EX 2500 (which does not run Juniper’s JUNOS operating system) is a third party technology (possibly from Blade Network Technologies) which Juniper OEMs.
Nortel put to rest rumors that it would maintain any of its units under the company name in a letter sent to Nortel users this morning obtained by SearchNetworking.com. Nortel also said it had little information to share with customers about what would happen to their service contracts once the company’s units are sold off.
News broke over the weekend that Nortel would sell its LTE and CDMA businesses to Nokia Siemens Networks. Since then rumors have floated about whether the company would maintain its enterprise unit. Then a letter arrived in users’ email boxes this morning.
“Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. We believe that the best outcome for each of our businesses is to find buyers who can carry Nortel’s rich innovation platforms into the future,” stated the letter, which was not signed. The letter went on to say that the company would “assess other restructuring alternatives” for the remaining businesses if they were not acquired.
Nortel has promised since it filed bankruptcy in January that it would emerge from restructuring a leaner, meaner machine. But Nortel CEO Mike Zafirovski attended the International Nortel Networks Users Association (INNUA) annual meeting a couple of weeks ago and outlined a number of potential strategies for the companies, including a total sell-off as one.
“This is a tangible example of them moving forward with that strategy,” said INNUA exectuve director Victor Bohnert, explaining that users weren’t shocked when they received the letter.
But others users contacted have said they won’t be satisfied until they know which company is going to buy Nortel and what will happen to their service contracts. The letter was clearly an attempt to ease anxiety among these users, but it fell short of providing any details.
“We know the most important question to you right now is what all of this means to you and your relationship with Enterprise Solutions. We want to reassure you that during the process we are open for business and will continue to operate. At this time, we do not have all the answers, but we remain committed to ensuring that you experience no disruption to your business during this process,” the letter read.
“As soon as a clear path forward is defined for Enterprise Solutions, we will communicate that news to you,” the letter stated, adding that in the meantime, all product commitments would remain in tact and contracts would be serviced.
Analysts agree that even if Nortel has a buyer for the enterprise unit in the works, there isn’t much more information the company can possibly share until a deal is finalized.
“Once somebody else buys [Nortel], it’s up to them what they do with honoring those contracts,” said IDC analyst Abner Germanow, adding, however, that ongoing service contracts are a profitable business and it would be unlikely for any company not to maintain and honor them.
In the meantime, the letter was an attempt to let customers know that Nortel would keep communications open through the transition.
“Consider this a kiss thrown in your [the end user’s] direction,” said Tom Nolle, president of CIMI Corp., a consultant and analyst firm.
Now users have to hope that the acquiring company is one that will use Nortel’s portfolio to compliment its own offerings, said Bohnert. There has been some fear of an acquiring company that would snatch up Nortel for its customer base with no plans of continuing the enterprise portfolio.
Beyond that customers want an acquiring company that can deal with a major transition and “where service and support is part of the culture,” Germanow said.
Siemens and Avaya are both rumored to be considering acquisition of Nortel’s enterprise unit.
Market analyst firm Dell’Oro published a 1st quarter assessment of the wireless LAN market which showed that a severe 11% drop in enterprise spending from the 1st quarter of last year and a 15% drop from the 4th quarter of 2008.
Dell’Oro says Cisco’s huge share shrank a little, from 63.1% to 60% from a year earlier. HP ProCurve doubled its share from 1.7% to 3.1%, no doubt thanks to its acquisition of WLAN vendor Colubris. Aruba’s share is 8.1% and Motorola’s is 5.9%.
Despite the overall poor showing for WLAN, 802.11n technology sales grew 4% from the 4th quarter of last year, according to a report from PCWorld. and 802.11n technology now makes up the majority of the WLAN sales for the first time ever.
Cisco’s domination in the wireless LAN market remains intact, but it’s interesting to see their share shrink just a little bit. In fact, looking at the numbers, the amount of market share Cisco lost equals ProCurve’s ENTIRE market share.
The WLAN market remains extremely crowded and some of the largest network infrastructure vendors not named Cisco (Brocade, Juniper) lack a true WLAN product line. I expect to see some more consolidation before the recession ends.
We know earning a certification is no walk in the park. After you’ve joined a certification boot camp, read your certification books, created your practice labs and finished studying, you then have to pay someone to take an exam to earn the qualification. Well, this week, that’s no longer the case!
If you want to take any Microsoft Certified Professional or Microsoft Dynamics exam, now is your chance to take it for free: SearchNetworking.com is giving away six Microsoft certification exam vouchers in our Career Success Story Contest.
In a job market that’s more competitive than ever, we want to make sure our members are able to get the edge they need to succeed and even surpass the ranks of their peers. That’s why we want you to tell us your story. We know our readers are extremely intelligent, successful and qualified professionals — we just want to showcase it.
Whether you’ve been able to keep your job because of a certification, or you know someone who has — telling us in 150 words or less can win you a voucher to take a Microsoft test for free. More details can be found in our Career Success Story Contest page or our certification and training expert, Ed Tittel’s, Win an MS Voucher blog post.
In the words of Ed: “May the best story not only win, but inspire others to get their certification.”