Cisco Critises HP Business Strategies in Internal Memo

Enterprise networking equipment maker Cisco is planning to exploit the current sales chain disruption which is underway at HP as the world’s largest PC maker decides whether to spin off its PC business or not.

According to an article on CRN, Cisco’s executive vice president for sales, Rob Lloyd, has sent an eight page memo to its sales workforce.

In the memo, published by CRN in its entirety, Cisco states that it expects a negative impact on HP’s distributor chain if the company decides to spin off its PC business, which is the largest in the world.

Cisco believes that HP will not only hurt itself but also its partners. The company also believes this will not only have a negative impact on its PC sales, but also the sales of other hardware like servers.

“HP is stuck between a rock and a hard place. Exiting the PC business would have a major impact on HP’s ability to generate economies of scale—impacting other products such as low-end servers—and would undermine its ability to gain competitive advantage by positioning itself as an end-to-end IT supplier,” sais Cisco claims in the internal memo.