Feeds

Cisco shakes up distribution strategy

Fewer top-tier wholesalers

  • alert
  • submit to reddit

Updated Cisco has announced a shake up in its distribution strategy in EMEA (Europe Middle East and Africa) which means many of its disties will no longer deal with product procurement, effectively demoting their status.

After February 2002, Cisco's Western European wholesalers are organised into two tiers: seven Cisco Distribution Partners (CDPs), which have a direct purchasing relationship with the company; and 10 Cisco Authorised Distributors (CADs), which have a relationship with Cisco but procure kit from a CDP.

The seven CDPs are: Acal, Algol, Azlan, Comstor, Ingram Micro, PC Lan and Techdata/C2000 (so all UK disties have become CDPs).

The remaining 40 distributors in E-EMEA (Eastern Europe, the Middle East and Africa) will continue with the current distribution contracts until Cisco implements its new strategy (CDPs and CADs) in those regions. Cisco has 28,000 resellers in EMEA.

Cisco said the purpose of the changes was to maximise the efficiency of its 2-tier channel model, and increase the availability of product to end-users while reducing the costs for its distribution partners. ®

Update

Based on an ambiguous Cisco Power Point presentation, we earlier reported that Cisco's 57 wholesalers had been culled down to 17. This is incorrect because the 40 distributors not mentioned are still working with Cisco (although their status [CDP or CAD] in the new set-up is yet to be decided).

Rather than talking about a cull it is more accurate to say that a number of Cisco wholesalers (those with a lesser competency in logistics and inventory management) have been demoted.

Related Stories

Azlan in reverse profits warning
Ingram UK back in Cisco distribution biz
C2000 parades financial welly in system builder market
Channel faces cash crisis

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.