Resellers challenge networking vendors

Cisco and 3Com are facing a backlash from their channel partners over customer data.

Cisco Gold partners and 3Com advanced solutions providers (ASPs) have been asked to supply extensive customer data to the vendors in return for extra margin. Both Cisco and 3Com claim that the move would stop margin-eroding bidding wars between resellers.

A director of one Cisco Gold partner, who asked not to be named, claimed that there is a contradiction between what Cisco says publicly about how it wants its channel to operate and what is happening in the field. "This isn't something for resellers' benefit," he said. "It's to maximise the amount of control Cisco has over its users." Cisco does not support its partners, he claimed. "As long as Cisco wins the deal, it doesn't care."

Another Cisco reseller said a point-of-sales report, which must be filled out with full customer details in return for a one per cent discount, has been added to contracts. However, a Cisco representative denied that anything has been added to the Gold partner contracts.

3Com has introduced point-of-sales requirements to its ASPs contract, which a number of resellers have refused to sign.

Malcolm McGoogan, marketing director at Fastnet, said resellers are reluctant to hand over valuable customer information. "We are fully committed to the ASP programme, but are still in discussions over signing the contract," he said.

Carolanne Hurley, managing director of Pinacl Network Services, has written to 3Com setting out her reasons for refusing to sign the ASP contract.

John Prattis, 3Com's European channel marketing manager, said the ASP programme was put together in consultation with partners with the intention of excluding some resellers. High-end resellers must offer manufacturer-backed support.

"There is flexibility concerning support contracts in so far as you don't have to be an ASP," said Prattis. 3Com is prepared to negotiate the amount of customer data resellers must report, he added.