Cisco is warning customers that the base price of its hardware is expected to increase starting early next month amid “current industry-wide global supply chain challenges” – and sources said The Reg the increase will be 7%.
Customers probably won’t like it – no one wants to pay more for routers and switches – but it’s no surprise: CEO Chuck Robbins said in May that the company is fighting for all the components it can. buy as demand rose to 10-year highs, saying he was considering “strategic price increases”.
A Cisco spokesperson sent us a statement:
Cisco is not alone. HPE increased the price of its networking equipment over the summer, citing rising component costs, and Arista admitted it may have to mark up prices “on selective models” next year.
In its last round of financial results for calendar Q2, Arista said semiconductor delivery times were 60 weeks – double pre-pandemic standards – and campus, routing, switching and data center products were all affected.
“We are affected on chips, memory, copper, passive components, freight, logistics, acceleration costs. I don’t know if I can identify; it affects all of our products. And the timelines vary… they’re all double, ”CEO Jayshree Ullal said on a call to investors to discuss the results.
She added that the situation was “more than the worst I have ever seen, I think this will also continue. I guess we are all hopeful we will all recover from the COVID pandemic. But everything, from copper shortages to wafer inventory to assembly to labor, people, logistics, freight. Just about every aspect of it is in question. “
Extreme Networks and Juniper also reported extended delivery times over the summer.
One of the pitfalls of the current situation is that customers start to panic and order too many products. Several sources have told us that to counter this, Arista is considering policy changes that seem rather drastic – making products non-returnable or voidable unless they are faulty. We have also heard of price increases of between 5 and 15%.
We invited several official sources over to Arista to discuss it, but a senior spokesperson said: “Thanks for registering, we have no comments.” This is not an official confirmation or an official denial. Obviously.
According to the right folks at Context, which collates distributor sales data to provide insight into industry performance, a straw poll of channel executives found the majority said they were not in business. able to get only half of the networking kit they need. Laptops, printers, ink, servers and monitors were also lacking. ®