Cisco Subnet An independent Cisco community View more

Cisco sues HP over VoIP contract

Claims it's owed $58M while HP seeks "full credit" after cancellation

internet gavel keyboard

Cisco is suing HP in a dispute over a $58 million contract to provide services to an HP VoIP customer. The contract dates back to 2012, according to this post in The Recorder.

Cisco agreed to provide support for HP's VoIP service purchased by an unidentified HP customer. That customer then cancelled its HP service, and HP in turn cancelled its Cisco service in 2013, according to The Recorder.

The cancellation entitled HP to early termination credits applied toward its remaining balance. After the credits were applied, Cisco determined HP still owed $58 million.

HP responded that the company is entitled to a "full credit," and should have to pay nothing. Cisco claims HP is now seeking credits that amount to more than what HP owes.

States a Cisco spokesperson in an e-mail:

On August 24, 2015, Cisco filed a lawsuit in Santa Clara Superior Court seeking to recover monies owed after the early termination by HP of a services agreement between the two companies. The services agreement at issue was financed by Cisco Capital and the dispute relates to the calculation of a monetary credit to be applied to the loan balance owed by HP under the financing agreement. As this matter is before the courts, we will not provide additional comment.

An HP spokesperson says the company has a policy of not commenting on pending litigation.

More from Cisco Subnet:

Must read: Hidden Cause of Slow Internet and how to fix it
Notice to our Readers
We're now using social media to take your comments and feedback. Learn more about this here.