blog It’s not easy being a buyer of technology products and services in Australia at the moment. The continually sliding value of the Australian dollar means that vendor after vendor is hiking the Australian prices of their products. Australians are increasingly paying more Australian dollars for precisely the same product. The latest vendor to hike their prices is Cisco Systems … whose products were not precisely at the cheap end of the market to start with. CRN quotes Cisco (we recommend you click here for the full article):
“Cisco periodically reviews the pricing of its products and services. As the result of a recent review the company has notified its Australian customers, partners and distributors of a 12.83 percent increase for all Cisco products and technical services, effective on the 9th November 2015.”
While this is probably a legitimate move, based on the value of the Australian dollar, it’s also true that Cisco has a habit of raising prices in Australia. We saw the same situation in June 2012, when the company slapped a blanket 9.2 percent price increase on all of its products and services in Australia, again giving its customers and partners just very short notice of the price rise.
Australian IT departments and telcos are used to paying through the nose for Cisco gear, although it should also be admitted that Cisco typically sits at the quality end of the market — its products are usually some of the best out there. It will be interesting to see if its price change has any impact on local adoption rates, or whether the price changes will drive some Australian operations to change up their networking hardware product mix, perhaps mixing in a higher percentage of products from cheaper vendors.