Changing the Channel: Networking VAR news

Jul 7 2009   4:06PM GMT

Cisco to VARs: Match every ProCurve price. ProCurve says, make my day

Shamus McGillicuddy Shamus McGillicuddy Profile: Shamus McGillicuddy

Last night the marketing organization at HP ProCurve inadvertently copied us into an email exchange about an upcoming tactical response to an unpublicized channel campaign by Cisco.

According to the email, Cisco has instructed its VARS to match any price ProCurve offers. Cisco hasn’t publicized this program, so not all Cisco customers know about it.

Apparently ProCurve will embrace Cisco’s tactic.  The company plans to publicize Cisco’s price-matching scheme to everyone. Why? As the email states: “…if every Cisco customer knew they could get Cisco products at the same price as ProCurve products, this would accomplish two things: make customers more familiar with ProCurve (they’d have to call us in order for us to make them an offer) and spread the Cisco sales team thin by having them respond to every customer asking them to match ProCurve offer (and lose money in the process).”

The leaked email seems to indicate that ProCurve plans to officially announce this move next week. ProCurve partners should expect to start hearing from Cisco customers soon. It wouldn’t hurt to do a little extra marketing so that Cisco customers in your region know where to go for a ProCurve price quote.

This news out of ProCurve follows an internal Cisco memo leaked last week, which details a significant internal reorganization of Cisco’s sales and channel-facing teams.

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