IBM on Tuesday announced that it will start offering Cisco's MDS 9000, beginning with the MDS 9509 director and 9216 fabric switch, on March 21, 2003 in the U.S. In early January, IBM announced its intention to resell the Andiamo switches (see IBM Tells Cisco: 'Let's Go!').
But if the pricing IBM disclosed is any indication, Cisco -- as usual -- is charging a serious premium over its competitors for FC fabric switches. According to Big Blue, this is how it breaks down:
Table 1: IBM List Prices of Cisco's Andiamo Switches
|Model||IBM Part No.||Price||Configuration||Price Per Port|
|MDS 9216||2062-D01||$52,263||1 16-port line card||$3,266|
|MDS 9509||2062-D07||$189,372||2 16-port line cards||$5,918|
|MDS 9509||2062-T07||$229,050||2 16-port line cards||$7,158|
|Source: IBM Corp.|
That puts the starting price for a 16-port MDS 9216, which is expandable up to 48 ports, at $3,266 per port -- well above that of FC fabric switches from Brocade Communications Systems Inc. (Nasdaq: BRCD) or McData Corp. (Nasdaq: MCDTA). IBM sells Brocade's 16-port SilkWorm 3800 (rebranded as the IBM 2109-F16) for $33,770, or about $2,100 per port. Other switches in this category are even lower: McData's Sphereon 4500, in a 16-port configuration, carries a list price of $15,000 (see McData Lowers Boom on Brocade).