Cisco: No pricing rethink in 2012

Despite IT budgets being slashed and Cisco's eagerness to impress investors, the networking giant will not rethink its pricing strategy.

Cisco will not be reviewing its pricing strategy in 2012, even in the face of reduced IT budgets across the globe.

Customers IT Pro and others have spoken to have cited Cisco's premium prices as off-putting, when compared to cheaper offers from competitors.

Cisco, which is in the midst of major strategic changes, will not budge on pricing anytime soon though, according to Ian Foddering, chief technical officer and technical director for Cisco UK.

"We will always look to remain competitive but there will not be any wholesale change," Foddering said.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Cisco's refusal to budge on pricing will disappoint IT departments looking to make more out of less. UK councils, for instance, look set to have budgets cut by as much as nine per cent in 2012, according to a Socitm report released yesterday.

We will always look to remain competitive but there will not be any wholesale change.

CEO John Chambers called on Cisco to refocus on it's core strengths namely networking - in 2011 after repeatedly disappointing investors.

This has led to various consumer products being sent to the scrapheap, including Flip cameras and the umi videoconferencing offering.

Yet a pricing rethink does not feature in Cisco's re-organisation plans.

And now for some good news...

Advertisement - Article continues below

Cisco's refocusing has led to job losses too, but Foddering told IT Pro he does not believe there will be any more redundancies this year, even in the face of a difficult financial climate.

"I don't foresee any further changes," he added.

"I'm bringing on board six new apprentices and five new interns actually the big challenge right now is finding the right people."

Whilst he could not provide any figures for how many UK workers were made redundant, Cisco spokespeople said the majority of job losses were in the US.

Advertisement
Advertisement - Article continues below

Many people in the UK who did lose their roles did so voluntarily, according to the Cisco spokesperson.

The company will hold its premier event, Cisco Live, in London at the end of the month.

Advertisement - Article continues below

Check back on IT Pro for all the latest news from the event when it kicks off on 31 January.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/software-defined-wide-area-network-sd-wan/33346/what-is-sd-wan
software-defined wide area network (SD-WAN)

What is SD-WAN?

18 Sep 2019
Visit/network-internet/33885/zyxel-nebula-control-center-2019-review-takes-all-the-pain-out-of-networking
Network & Internet

Zyxel Nebula Control Center 2019 review

21 Jun 2019
Visit/network-internet/33802/what-to-expect-from-cisco-live-2019
Network & Internet

What to expect from Cisco Live 2019

10 Jun 2019
Visit/network-internet/33589/ipswitch-whatsup-gold-2019-review-what-s-on-your-network
Network & Internet

Ipswitch WhatsUp Gold 2019 review: What’s on your network?

8 May 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020