Russian distributors will lose more than $ 100 million due to the new Cisco operation scheme in the Russian Federation
Cisco Systems Corporation plans to independently deliver its products to Russia. Its subsidiary LLC Cisco Solutions will carry out customs clearance of equipment and sell it for rubles. Now four distributors are engaged in importing Cisco products - OCS , Marvel-Distribution , CompTek (included in Lanit), and RRC . They sell equipment to system integrators, the number of which in Russia is more than 2 thousand, of which 22 companies have the status of gold partners.
In September, Cisco offered Russian customers to start testing a new operating scheme from November 2015, one of the integrators told Kommersant. Until February 2016, the transition to the new scheme of work will be completed, and customers will be able to purchase equipment directly from Cisco Solutions LLC. And the company will cease cooperation with distributors.
In the fourth quarter of the fiscal year 2015, Cisco dollar revenue in the Russian Federation decreased by 38%, said Cisco CEO John Chambers on August 12. However, the financial performance of Cisco in Russia has increased in rubles. According to kartoteka.ru, in 2014 the revenue of Cisco Systems Ltd. reached 5 billion rubles with a net profit of 404 million rubles. This is 7.4% and 1.68% higher than the corresponding figures for 2013.
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Low rates in the United States are associated with the macroeconomic situation, as well as with US sanctions against Russia, explained Mr. Chambers. According to one of Cisco distributors, after the introduction of the sanctions regime, the corporation began to require customers to comply: Such paper should be signed by the first person of the company-buyer ".
The transfer of customs clearance from distributors into the hands of Cisco itself will increase the transparency of the process, says Hiroaki Tezuka, general director of Toshiba Rus LLC. According to him, the transition to direct deliveries to the Russian Federation will help increase sales profitability, and also allow Cisco to more closely interact with customers. “This is a positive signal for the entire market,” said Tezuka.
But due to the termination of cooperation, Cisco distributors will suffer serious losses. “In aggregate, distributors received $ 300- $ 400 million for the sale of Cisco, at least one third of this amount will be redistributed to Cisco,” the Kommersant interlocutor estimates . The next step of the corporation could be self-service of the largest customers, including the mobile operators of the “big three”, the Central Bank , Sberbank , Gazprom , he said. “The integrators are already preparing for this and are starting to carry out the Cisco substitution,” says one of the corporation's partners. “We will offer customers of alternative manufacturers, such as Huawei or Juniper .”
According to Boris Bobrovnikov, CROC CEO, Cisco’s move to direct delivery will allow the vendor to influence market prices, but this will also impose transportation obligations on the corporation, which will require additional investments. “At the same time, the vendor will still work with the customer through partners, thus, these changes will not be able to affect the business of CRIC ,” he said.
For Lanit, which recently lost its contract with IBM , Cisco’s intentions were another blow. The CompTek distributor included in it may lose part of the business, recognizes Georgy Gens, President of Lanita.
In September, Cisco offered Russian customers to start testing a new operating scheme from November 2015, one of the integrators told Kommersant. Until February 2016, the transition to the new scheme of work will be completed, and customers will be able to purchase equipment directly from Cisco Solutions LLC. And the company will cease cooperation with distributors.
In the fourth quarter of the fiscal year 2015, Cisco dollar revenue in the Russian Federation decreased by 38%, said Cisco CEO John Chambers on August 12. However, the financial performance of Cisco in Russia has increased in rubles. According to kartoteka.ru, in 2014 the revenue of Cisco Systems Ltd. reached 5 billion rubles with a net profit of 404 million rubles. This is 7.4% and 1.68% higher than the corresponding figures for 2013.
')
Low rates in the United States are associated with the macroeconomic situation, as well as with US sanctions against Russia, explained Mr. Chambers. According to one of Cisco distributors, after the introduction of the sanctions regime, the corporation began to require customers to comply: Such paper should be signed by the first person of the company-buyer ".
The transfer of customs clearance from distributors into the hands of Cisco itself will increase the transparency of the process, says Hiroaki Tezuka, general director of Toshiba Rus LLC. According to him, the transition to direct deliveries to the Russian Federation will help increase sales profitability, and also allow Cisco to more closely interact with customers. “This is a positive signal for the entire market,” said Tezuka.
But due to the termination of cooperation, Cisco distributors will suffer serious losses. “In aggregate, distributors received $ 300- $ 400 million for the sale of Cisco, at least one third of this amount will be redistributed to Cisco,” the Kommersant interlocutor estimates . The next step of the corporation could be self-service of the largest customers, including the mobile operators of the “big three”, the Central Bank , Sberbank , Gazprom , he said. “The integrators are already preparing for this and are starting to carry out the Cisco substitution,” says one of the corporation's partners. “We will offer customers of alternative manufacturers, such as Huawei or Juniper .”
According to Boris Bobrovnikov, CROC CEO, Cisco’s move to direct delivery will allow the vendor to influence market prices, but this will also impose transportation obligations on the corporation, which will require additional investments. “At the same time, the vendor will still work with the customer through partners, thus, these changes will not be able to affect the business of CRIC ,” he said.
For Lanit, which recently lost its contract with IBM , Cisco’s intentions were another blow. The CompTek distributor included in it may lose part of the business, recognizes Georgy Gens, President of Lanita.
Source: https://habr.com/ru/post/295522/
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