WSJ general summary of N+I conference. [ASND VPN reference]
By MARK BOSLET Dow Jones Newswires, 5/8/98
LAS VEGAS -- Two familiar themes dominated this week's networking industry trade show here: producing gear that is faster and more powerful, and giving it the capacity to do more.
Vendors attending the Networld+Interop conference rolled out powerful switches, highlighted new network-management and security software, and focused on the convergence of voice networks and computer networks. They also talked up plans to bring more bandwidth to homes, even as some Internet-service providers promoted tiers of higher-quality, higher-priced access aimed at business customers.
As with other areas of technology, the networking industry is grappling with rapid change. That's meant more choices for customers, but it's also made it more challenging for network managers to sort through each wave of new products.
At the same time, the Internet has altered the rather static traffic patterns of mainframe and client-server networks, where users were grouped in isolated, self-contained areas. Now, administrators have less control of what users are doing and a greater need for oversight.
New Roles for Networks
"People are trying to get their infrastructures right" even as their networks are pushed into a role of finding new customers and business opportunities, said William T. O'Shea, president of business-communications systems at Lucent Technologies Inc.
Among the hottest topics in the networking world is the prospect of sending voice, data and video traffic across a single network, a cost-saving opportunity highlighted by 3Com Corp. Chief Executive Eric Benhamou in a well-attended keynote address. Mr. Benhamou described this convergence as the "next major milestone for our industry," and his sentiments were widely echoed.
It is the "hot topic right now" and a market that is "starting to happen," agreed Lucent's Mr. O'Shea. Systems to send voice, data and video across a single network are here today, he said, but widespread use is yet to come, and it will be two to three years before most customers adopt the technology fully.
The customers participating in trials now are mostly larger corporations acting as early adopters, said Edward L. Wadbrook, vice president of product management at NBX Corp., a private start-up developing a telephone-convergence product for small and medium-sized businesses. Broader market deployment, he said, is a year or two away.
Gigabit Switches
Several interesting technologies discussed in past years have reached market this year. Gigabit switches have been reaching the market over the past several months, and network managers attending the show were clearly moving to deploy them.
Among the high-powered boxes introduced at the show was a eye-catching product from Fore Systems Inc. The Warrendale, Pa., company unveiled its ForeRunner ASX-4000, an asynchronous transfer mode, or ATM, switch designed to sit at the heart of corporate networks and run at an impressive 40 gigabits per second.
Another product area moving from talk to market is layer 3 switching, a way of intelligently routing data using silicon chips instead of slower software. Industry leaders such as Cisco Systems Inc., Bay Networks Inc. and 3Com have been rushing these products to market.
Cisco officials said Tuesday that layer-3 switching should be a $2 billion market by 2001.
Last year's drawing-board promises have also translated into more sophisticated software and hardware for creating virtual private networks, "tunnel-like" connections across private networks and the Internet that provide better security and privacy for data communications.
From Smoke, Solutions
Where last year there was "smoke and arm-waving," this year there are actual solutions, said Grace Carr, vice president of corporate marketing at Bay Networks Inc. This year's products give service providers and corporations the tools for easier, more sophisticated tunneling and for more advanced monitoring of performance and security.
The market for virtual-private-network gear looks like a "rapidly growing" one that should really take off in three to six months, Ms. Carr said -- and market researchers see it quickly reaching at least $1 billion.
Both Bay and Ascend Communications Inc. introduced products for virtual private networks at the show.
Bay brought out its Extranet Switch 1000, a product for companies with up to 50 simultaneous remote or branch-office computer users who need to link to a central network. The product incorporates modem functions, security such as user authentication and abilities to manage the use of bandwidth. At the show, Ascend introduced a broadened business strategy for the market and software that provides network managers with information on network performance.
Internet-service providers, meanwhile, are seeing more savvy customer interest in higher-quality service, such as firewall, encryption and certificate security for data transmission.
"The awareness level is at such a point now [that customers] are definitely more sophisticated," said Scott G. Lewis, Internet-product manager at CompuServe, a unit of WorldCom Inc.
Industry leaders, of course, also worked to drum up interest in next year's technologies. Talk focused on the greater use of fiber optics in network backbones and on the evolutionary step to switching at layer 4, where, for example, a CEO's e-mail can be given a higher delivery priority than e-mail from accounting.
Today, however, sorting through the array of products and competing claims remains a time-consuming task for customers. "There is so much technology...thrown at them," said Bay's Ms. Carr.
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