The 10 Biggest Cisco News Stories Of 2022 (So Far)
Cisco’s 2022 has been a mixed bag so far, complete with impacts from global supply chain constraints and Russia’s invasion of Ukraine, to a reported software megadeal and the company’s software and everything-as-a-service transition moving at full-steam ahead.
9. Cisco Warns About Gray Market Activity, Counterfeit IT Gear
The global supply chain challenges and material shortages aren’t only slowing manufacturing and shipping. It’s also leading to a rise in gray market activity, as well as something more nefarious: a surge in counterfeit IT products, Cisco said in April.
The gray market, or products sold legally outside of the brand’s permission by unauthorized dealers, has long been a challenge for IT vendors like Cisco. But the disruption of global supply chains that have resulted from the COVID-19 pandemic has made lead times for procuring technology hardware substantially longer, which has led to customers and even channel partners, looking outside of Cisco’s authorized channels to get their hands on new products faster. This issue has resulted in a spike of counterfeit activity for Cisco in 2022, said Al Palladin, Cisco’s legal director of global brand protection.
Cisco and its colleagues in the Alliance for Gray Market and Counterfeit Abatement (AGMA), which includes the likes of HPE, Juniper Networks, and Microsoft, have estimated the economic loss to channel partners exceeds $100 billion a year. From a Cisco perspective alone, the company estimates $1.2 billion a year in losses to Cisco partners that are displaced by other partners winning deals with counterfeit, or low-quality gray market gear or customers purchasing outside of the Cisco supply chain.