April 10, 2002

Cisco GBIC Sourcing & Support Policy

We are continuing to receive questions concerning the consequences of Cisco
end users acquiring GBICs (Gigabit Interface Converter) modules from
non-Cisco sourced third parties or directly from GBIC suppliers for
deployment in Cisco routers and switches.

Apparently there is still some confusion on what Cisco's position and policy
is in respect of these third party GBIC's, which is why I would like to
summarize those for you and highlight the main points. I would also like to
take this opportunity to outline what Cisco would expect from you as a
Channel Partner when it comes to you supplying non-Cisco GBIC's together
with Cisco equipment to end users.

Cisco's policy:
Products from non-Cisco sources do not qualify for Cisco support and may not
be compatible with hardware, power, or software requirements. Cisco sourced
GBIC's can be easily identified by the Cisco logo and trademarks on the
label. If a GBIC does not have the Cisco label and trademarks on it, then it
has not been sourced from Cisco and is subject to the conditions outlined
below.

GBIC's acquired through non-Cisco sources will be subject to the following
conditions:

1) Cisco TAC is not under an obligation to support any non-Cisco GBIC
modules;

2) Cisco SMARTnet will not cover non-Cisco GBIC modules;

3) Cisco does not guarantee the performance or results you may obtain by
using a non-Cisco GBIC;

4) In the event that an end user experiences a support issue that Cisco
determines is caused by use of a third party GBIC, Cisco will not provide
warranty support or support under SMARTNet or another Cisco support program
for that issue. On the other hand, where a product fault or defect occurs in
the network and Cisco concludes that the fault or defect is not attributable
to the use of a GBIC installed by our customers or partners, Cisco will
continue to provide support for the affected product under warranty or a
Cisco support program. The nature of the defect or error is the key to
determining what Cisco's support obligations are.

Cisco sources GBIC's from third party suppliers, who agree to follow Cisco
quality standards.  Sometimes, Cisco disqualifies a supplier because of
quality issues with that supplier's product, or for other reasons (i.e. EMI
or power requirements). Disqualified suppliers may continue to sell their
GBIC's and please note that they or parties that have purchased from them
may claim that their GBIC's are Cisco approved. Such statements are at best
unreliable and our customers should understand that only by sourcing GBIC's
directly from Cisco or a Cisco Authorized Channel, can our customers be
confident they are getting Cisco approved modules that will qualify for
Cisco support (Cisco sourced GBICs can be identified by the Cisco logo and
trademarks on the label). We are taking appropriate legal action against
suppliers using such false and misleading statements.


What does Cisco expect from its Authorized Channels?
Obviously we believe strongly that our GBIC's are superior in terms of
quality and performance to any non-Cisco GBIC. Nevertheless, you may in
certain instances prefer to resell third party GBIC's. As stated above, this
may occasionally give rise to support and warranty issues, and may cause
confusion with the end users. In order to prevent such issues and to protect
Cisco's brand and reputation we would like to ask you to observe the
following guidelines when reselling non-Cisco GBIC's together with or
already installed in any Cisco products you are reselling:

    Inform the end user of the fact that he is receiving a non-Cisco GBIC;
    Inform the end user that such a non-Cisco GBIC will not qualify for
Cisco support;
    Inform the end user of the brand of the non-Cisco GBIC and how they can
obtain support on those products and what the warranty terms are.

Although this statement specifically covers GBIC's, the same issues arise
with other third party components e.g. memory or cables.  With regard to
those products the same principles as set out in this letter apply.

For any specific questions please contact your Cisco channel account manager.

Yours Sincerely

Paris G Arey
VP EMEA Channels & Alliances
Cisco Systems Inc.



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