D-Link's Pitch: We're Cheaper Than Cisco
Date : 25 Sep 2008 Category : Technology
NewsFactor NetworkThe Fountain Valley-based maker of networking gear, part of Taiwan's D-Link Corp., is pitching its routers and other products as a cheaper way for budget-conscious businesses to expand their networks.
The company's selling point: We're cheaper than Cisco.
D-Link's less expensive prices could appeal to small and midsize companies that have seen their businesses slow this year, crimping their ability to spend on technology.
They also appeal to resellers-tech shops that sell and install computer gear at businesses-which keep more of the profits on D-Link sales.
Targeting businesses is a bit of a switch for D-Link, which is better known for selling to consumers and home-based businesses.
"We have two different models we are running now, two different faces," Chief Executive Steven Joe said. "D-Link is well known in the consumer sector, which we started here in Fountain Valley a dozen years ago. But we've actually been involved hi the business sector for 22 years."
D-Link's Taiwanese parent got its start selling to businesses through resellers, according to Joe.
The Business Journal estimates D-Link's local operation, which has some 300 workers, sees about $1 billion in sales a year.
The bulk of D-Link's U.S. revenue comes from switches, routers, modems and network adapter cards sold at electronics stores and by online retailers.
Products aimed more squarely at businesses -- network switches, extra data storage and security cameras -- are a small, growing part of D-Link's sales, Joe said.
The company's main competitor for consumers is Jjvine-based Cisco-Linksys LLC, an independently run division of Cisco Systems Inc. that sells through electronics retailers.
For sales to smaller businesses, D-Link also competes with Linksys but more so with Cisco itself, as well as with Marlborough, Mass.-based 3Com Corp.
"As for the technology, we've been working on it to meet business...