Channel Beat: Cisco Sets Aside Funds To Deal With Clock Component Problem; CSC-HPE Enterprise Services Picks Its New Identity


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Here's a look at some of the stories impacting the channel this week. Cisco CFO Kelly Kramer during the company's second fiscal quarter earnings call said the networking giant has booked a reserve of $125 million to cover any ongoing product replacement efforts stemming from its use of a faulty component in several of its product lines.

Use of the faulty third-party clock signal component in four of Cisco's product lines could cause systems to fail starting after 18 months of use.

Kramer said Cisco does not anticipate any material revenue impact from the issue.

Juniper and Hewlett Packard Enterprise this week also confirmed they have products that contain the faulty component, which HPE said comes from Intel. Neither Juniper nor HPE disclosed which products contain the component or how they plan to mitigate the issue for customers and channel partners. 

Also this week, CSC and HPE Enterprise Services have found a new name for their combined business: DXC Technology.

The $25.6 billion solution provider behemoth is set to open for business April 3, 2017 and will trade on the New York Stock Exchange under the symbol DXC.

 

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