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ComputerWire: IT Industry Intelligence

If Cisco Systems Inc's reasons for dumping Dell Computer Corp as a reseller last week were in any doubt, the company dispelled it yesterday. Cisco thinks Dell is a competitor.

In the company's 10-K annual report, filed with the US Securities and Exchange Commission yesterday, the company listed Dell alongside the likes of 3Com, Ericsson, Foundry, Lucent and Nortel when it disclosed where it sees competition. Dell was not listed in last year's report.

It emerged last week that from late this month, Dell will no longer be an approved reseller of Cisco kit. It is believed that Dell is thinking about expanding its line of PowerConnect switches from Layer 2 routing to Layer 3 routing, essentially moving Dell in direct competition with Cisco's flagship Catalyst core routers.

Dell told us at the time that the company has not announced any new networking products, but said it is "looking at" the market. The firm, best known for its PCs and servers, is looking to expand into other hardware, such as printers, as it seeks revenue growth.

Dell has been known to have a commoditizing effect on markets it enters, possibly giving Cisco some cause for concern. Dell also has reseller deals with Extreme Networks Inc, Nortel Networks Ltd and Enterasys Inc that it may rely on when the Cisco deal ends on September 27.

© ComputerWire

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