9/7/2004 -- Former Cisco reseller Dell Inc. last month introduced the PowerConnect 5324, a new 24-port managed Gigabit layer 2 switch. With this new offering, analysts say, Dell is taking dead aim at Cisco in the SMB space.

In late 2002, Cisco de-authorized Dell as a reseller of its networking equipment, ending a relationship of more than five years. Although officials on either side refused to comment, analysts say Cisco’s move was prompted by Dell’s own ambitions in the networking space. The new PowerConnect 5324, coupled with other recent product announcements out of Round Rock, appear to bear this out.

Dell says the new PowerConnect 5324 features 24 copper Gigabit Ethernet ports and four SFP slots for fibre, along with support for a bevy of standards, including link aggregation, port mirroring, SSL/SSH encryption, RADIUS and TACACS+ remote authentication, and integrated manageability features -- all for $1,299 MSRP, less than $55 per managed Gigabit port.

At that price point, says Steven Schuchart, an analyst with consultancy Current Analysis, Dell could very well make some headway against networking kingpin Cisco Systems Inc. “Dell should go after Cisco with this product, pounding the ease of management and competitive price of the PowerConnect 5324 as significant advantages over Cisco’s products,” he writes.

At the same time, Dell’s nascent networking product line has a bit more growing to do before the company can realistically be seen as a threat to Cisco.

“While the PowerConnect 5324 is price competitive, it lacks the stacking capabilities that many switches in its class possess, putting it at a competitive disadvantage in an environment that needs more than 24 ports,” Schuchart writes, adding that “Dell cannot provide a full line of products, leaving a mixed-vendor environment in all but the smallest of the SMEs. Until Dell gets serious about switching, the company will remain a perennial bit player.”

As a result, Schuchart says Dell shouldn’t concentrate solely on Cisco. “Dell should market directly against Hewlett-Packard and 3Com for the price-sensitive market,” he concludes. -Stephen Swoyer