Home / Analysis / The biggest rip-off in networking: Ortial supports Gartner’s stark warning about third-party transceivers

The biggest rip-off in networking: Ortial supports Gartner’s stark warning about third-party transceivers

Networking, memory and data storage manufacturer Ortial Technologies has urged the industry to take Gartner’s advice on third-party transceivers.

In a report entitled “How to Avoid the Biggest Rip-Off in Networking”, Gartner highlights the overheads that big name brands charge, calling them out on the scare tactics used against third party suppliers.

According to Gartner research, network transceivers make up 10% to 15% of enterprises’ network capital spending. “So the cost saving opportunities of making the smart choice here are significant,” points out Ortial. “With brands like Ortial Technologies offering up to 40% price reduction on the Original Equipment Manufacturer (OEM) alternative, this results in around a 5% saving to the overall network outlay.

“Since this is significant, one has to ask why more companies are not taking advantage of this?” asked Ortial in a recent blog post about the latest report.

According to Gartner, the answer lies in the “fear, uncertainty and doubt cast on the reliability and compatibility of third-party alternatives”.

Gartner states that some aggressive OEMs use strong language to dissuade customers from using non-branded alternatives. Phrases used include “void the warranty” and “illegal” when referring to third party goods. The Gartner response to this is a strongly worded “simply not true”.

“This supports the feedback we have had from our own customers, who have installed our SFPs into branded systems with absolutely no conflict,” said Ortial. “In fact, in many cases, the branded system simply does not register that the third party component is there.”

Read more about how this works over at Ortial Technologies’ blog.

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