Intel to launch big assault in networking
Monday February 23, 11:20 pm Eastern Time
SAN FRANCISCO, Feb 23 (Reuters) - Semiconductor giant Intel Corp is
expected to unveil on Tuesday the group's long-term strategy for its
networking business and products for high-speed networks, company
officials said.
On Tuesday, Intel's president and chief operating officer Craig
Barrett will outline Intel's vision for its network products group,
one of the fastest growing divisions at Intel.
''We are expected to make some product announcements, but the main
purpose is we are going to outline our strategy,'' said an Intel
spokesman. ''We want to establish that we are very committed to the
networking business.''
Intel has been in the networking business since the early 1990s, when
it first started selling switches, hubs, routers and network interface
cards, all important pieces in building a network that links personal
computers and servers together.
Several weeks ago, Intel launched a networking line aimed at small
businesses with an easy-to-install feature.
On Tuesday, Intel is expected to aim at bigger corporations with a
gigabit Ethernet adapter card for servers, according to recent trade
press reports.
Transmitting data at the speed of one gigabit (one billion bits) per
second through networks is considered a holy grail of networked
computing.
Gigabit Ethernet networks are 100 times faster than most networks
in businesses today and Intel's products will compete with 3Com Corp
(COMS - news) and its SuperStack gigabit Ethernet switch product
family and others.
On Monday, in anticipation of a new competitive threat from the
world's largest semiconductor maker, Intel's main networking rivals
were gearing up for an attack on their turf.
Santa Clara, Calif.-based 3Com announced some early customers who
are deploying its new gigabit Ethernet system.
''We made a commitment to our customers that we would deliver the
industry's first, end-to-end Gigabit Ethernet system - and we're
right on track,'' said Edgar Masri, a vice president at 3Com, in a
statement.
Bay Networks Inc (BAY - news), headed up by former Intel veteran Dave
House, also announced on Monday two customers selecting Bay Networks
technology for a high-speed network, using Bay's asynchronous transfer
mode (ATM) technology.
The Yankee Group said in a recent report that they expect Gigabit
Ethernet to be deployed in more than 50 percent of corporate campus
backbone networks by the year 2000.
In 1997, Intel's networking business was still under $1 billion in
revenues, but it grew 40 percent last year.
''We should do that again this year,'' said Frank Gill, an Intel
executive vice president said in a recent interview to discuss the
company's networking products targeted at small businesses.
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