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Why Cisco and Dell Are Parting Ways

  November 1, 2002
  By Peter Morrissey


When we reviewed one of Dell's new switches recently, we were impressed with its features and dirt-cheap price. Turns out Cisco was impressed too, so much so that it ended a partnership that had Dell peddling Cisco gear on the PC maker's Web site. 3Com followed by pulling its switches off the Dell site.

It's understandable that 3Com would be concerned. Dell's line appears to compete directly with 3Com's in the low-end, commodity market. But it's surprising that Cisco would consider Dell such a big threat.

Small businesses putting up a network might indeed do just fine by including a couple of Dell switches with their PC orders, especially now that their choices are so limited. It's a chance to get cheap networking, with some enterprise features, backed by a big company.

But Dell doesn't have an end-to-end solution for larger networks. Its product also doesn't boast robust management features. Sure, Cisco likes selling gear to small businesses, but it's not Cisco's strength, and its hardball tactics with Dell seem to confirm that.

One thing's for sure: The switch price per port will continue to drop. That means no matter whose switches you're buying, they'll just get cheaper.


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