Server Components

Network Gear…..Third Party vs. Authorized

So you think your Cisco  network hardware (for example) is manufactured in one of their company factories?  Maybe the factory is filled with  Cisco employees monitoring design, production and quality control?  Hmmmm…better think again.

The network hardware that you assume is made by Cisco (as an example) is actually, designed, engineered and fabricated in a facility they do not own, made by employees they do not have on their payroll and supervised by managers who work for another company. Welcome to the reality of  Cisco being a fabless company.

So exactly what is a fabless company? Well, Wikipedia has a good definition. Essentially, “it’s a company specializes in the design and sale of hardware devices and  chips while outsourcing the fabrication or “fab” of the devices to a specialized manufacturer called a semiconductor foundry. Foundries are typically located in countries with lower cost of labor, so fabless companies can benefit from lower capital costs while concentrating their research and development resources on the end market.”

Network hardware companies, like Cisco and others, are gradually turning network hardware “inerds” into commodity products where the same, or extremely similar, components are used by multiple companies and in competing products. Cisco, for example, wants to focus on software and additional functionality so it embraces the chance to buy more generic network components.

Ok, so we now acknowledge that Cisco (and others) don’t manufacture their own products. So what does that mean in terms of your needs for various network equipment products.

Let’s look at it from another angle…….

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Here you are and you need additional DRAM, or Flash, for your router, switch or firewall. Or, maybe, you need an SFP or GBIC. Why would you want to buy any of these “Cisco Authorized” products when you can buy a Third Party alternative. Basically, it’s a product sold under the brand name of the company who actually manufacturers this; or it’s from another company that buys the same product from the same manufacturing facility and sells it under their brand name.

It seems to a great many customers who are aware of this, that saving money and getting the same product (or one extremely similar with no conflict issues) is well worth buying outside of the Cisco (or other brand) distribution system. Third party products are a viable alternative to overpriced authorized products which often bear only a different brand name on them.

It’s up to you to determine what’s best for your company but you need to consider every alternative to help upgrade your network at the most advantageous pricing. Third Party products, especially for memory, accessories and peripherals are often the best, most logical option.

 

About the Author

Hal has also been an adjunct professor of Economics teaching at Embry-Riddle Aeronautical University (ERAU), a private, coeducational university teaching mostly members of the US Military.

Hal holds a MBA in Finance from St. John’s University (NY) and a BA in Economics from The State University of New York College at New Paltz.

Hal is a proud member of the Rotary Club of Edmond, Oklahoma, a Master Mason attending Britton Lodge 434 in Oklahoma City, Oklahoma and a 32nd Degree Scottish Rite Mason attending at the Valley of Guthrie, Oklahoma.

Adding DRAM Memory to the Cisco Router

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