Feeds

Cisco to switch prices on July 1

Network maintenance re-negotiation advice

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Cisco customers should act now to renegotiate maintenance contracts before the network giant changes its prices on July 1.

That's the advice from Gartner which reckons Cisco will increase prices by between five to 10 per cent for older router product families (4500/4700 and 7500) from next month. Maintenance prices for the newer Content Engine family will also go up 20 percent, according to the analyst firm.

It's not just a simple price increase, however, with Cisco actually lowering some prices. There will be price reductions of 15 per cent to 35 per cent for Cisco's Software Application Support (SAS) and Software Application Support plus Upgrades (SASU) programs, as well as price adjustments for other products.

Gartner advises companies to review their maintenance strategies immediately to ensure costs are as low as possible.

"We recommend that Cisco customers extend their maintenance contracts to lock in the old rates, assuming that they can still space out payments over the life of the maintenance contract," said Mark Fabbi, vice president and research director for Gartner. "Remember to negotiate maintenance rates before making any new purchases because this is the only time the enterprise has leverage."

Gartner also recommends that companies investigate third-party maintenance offerings for possible savings, even though these contracts mean companies have less control over problem escalation since they are one-step removed from manufacturer support.

Gartner believes some companies are probably paying for too much maintenance.

"Not all of the enterprise's network may need the highest level of maintenance. Companies should consider reducing coverage for some locations or products to next-business-day levels," Fabbi said. "Older commodity products, in a stable environment that have a simpler software makeup, such as workgroup switches, may not need maintenance coverage at all. Keeping a couple spares may be a more cost-effective approach." ®

The Essential Guide to IT Transformation

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
Forrester says Australia, not China, is next boom market for cloud
It's cloudy but fine down under, analyst says
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.