(UPDATED with reaction from HP) Cisco Systems is dumping Hewlett-Packard from its partner program, and HP is dumping Cisco switches for QLogic, as the once partners become fierce rivals.
2/19/2010 10:58:00 AM By: Jeff Jedras and Paolo Del Nibletto.

It remains to be seen how it will play-out on the services side. Noting, however, that 10-years post-Y2K there is a massive infrastructure renewal opportunity looming, it is an opportunity for HP to gain market share for its own infrastructure offerings via its enlarged services business. However, he notes HP should also be leary, as it's an opportunity as well as for competitors such as IBM to fill that void with Cisco offerings.

“There is a tipping-point, and the data centre is up for grabs,” said Alexander. “It's game on.”

Partner reaction is mixed

The reaction from Canadian VAR partners of the two vendors to the news is mixed. Ottawa-based PureLogic IT Solutions is both an HP and a Cisco partner, and president Coreen Bouchard would like more information from both vendors on what this all means.

“PureLogic IT resold HP Blade Centre, which has many Cisco networking modules. We procured it from HP and it worked really well for us and our customers,” said Bouchard. “This decision will have an effect on our customers. I would like to know what happens next in terms of an exit strategy and support strategy. I really need to know".

For David Chow, president Ottawa-based Stoneworks Technologies and also both an HP and Cisco partner, the parting of Cisco and HP comes at a bad time as his company moves into unified communications.

“While I understand this move because it creates competition, I also believe that it was creating brand loyalty in the channel. What they are doing is creating some bad feelings towards those who rep both sides,” said Chow. “They're forcing us to choose one or the other and quietly putting pressure on the reseller to go with us or them. I do not think it's fair to ask those who make sales for these companies to do that.”

It's seen as a good move though by Pierre Salbaing, owner of Montreal-based Services Avance Reseaux, a Cisco gold partner, who calls it a courageous decision for Cisco to drop a company that may be its largest worldwide UC reseller.

“What it means is that HP has real competitive solutions to Cisco and it may signal to partners that there's another networking and services player up against Cisco. It could be a good plan B,” said Salbaing. “This is a rare decision for a company like Cisco who embraces partners like no other. To make a change to its partner base like this one it says that HP has maybe the best option against Cisco.