Cisco snubs HP

THE GLOVES have come off in growing competition between former best mates HP and Cisco.

Yesterday Cisco announced that it is dropping the maker of expensive printer ink from its reseller programme. The reason is apparently security. Cisco does not like the idea of HP getting its product roadmaps which are designed to help partners make long-term plans for how to position Cisco gear.

However thinking this will stop HP from finding out what Cisco is up to is a bit naive. After all HP is famous for going through peoples' rubbish bins to find out information, and besides, Cisco's roadmaps can often be read in the tech press. We don't really believe it for a moment.

HP will still be able to sell Cisco products to its customers, but it won't be eligible for rebates and other incentives.

Cisco and HP were once so close that former HP CEO Carly Fiorina sat on Cisco's board and used to encourage its sales force to push Cisco's networking gear. But that all changed last March when Cisco unveiled a server system that competes with one of HP's core products. Then last November HP bought 3Com so that its networking division could better take on Cisco.

Keith Goodwin, a Cisco senior vice president, said in blog post announcing the decision that "over the last few years our relationship with HP has evolved from a partner to companies with different and conflicting visions of how to deliver value to customers." He indicated that the company is sending a message out to the world plus dog that Cisco will compete with HP for future business. µ