IBM's latest Cisco SAN offerings follow a major price adjustment Big Blue made in mid-June on the MDS 9000, reducing list prices by roughly 30 percent. IBM executives say it was shifting away from a "premium price" strategy to a "competition-based strategy," a decision probably fueled by Hewlett-Packard Co.'s (NYSE: HPQ) lower initial pricing on the Cisco switches (see IBM Slashes Cisco MDS Pricing and HP Moves Hard on Cisco).
"If you look at it, you'll see we're competitively priced," says Thurston. [Ed. note: In other words, IBM quickly discovered that not many folks were willing to pay a 30 percent premium for the Cisco brand name.]
Todd Spangler, US Editor, Byte and Switch
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