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Technology Stocks : Vitesse Semiconductor

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To: Beltropolis Boy who wrote (3094)2/28/2000 2:28:00 PM
From: Beltropolis Boy  Read Replies (2) of 4710
 
here's an update on the 10-GE standard if it's alrighta with you folks that i talk to myself.

if you prefer to ignore the "death of SONET/ATM" drivel, then skip down to the second-to-last para.

btw, anyone else notice Moto taking out C-Port (network processors) last week? with LU snatching up Agere, who wants to wager that SiTera is up next?

$430M for C-Port = $4.8M per employee
$415M for Agere = $4.6M per employee


just how much loot does Tomasetta have in his coffers?

-----

Electronic Buyer's News
February 14, 2000, Issue: 1198
Section: News
Alliance looks to spur 10-Gbit development
Mark LaPedus
techweb.com

Silicon Valley -- Last week's formation of the 10-Gigabit Ethernet Alliance could shake up the networking landscape by prompting OEMs and chip makers to accelerate their efforts in the high-speed LAN/WAN arena.

The consortium promises to develop standards and hasten deployment of 10-Gbit Ethernet technology to transport data over fiber networks at 10 times the speed of today's 1-Gbit Ethernet lines, but at only two to three times the cost.

Though the 10-Gbit Ethernet standard is not expected to be ratified until March 2002, OEMs and chip makers plan to pre-empt the target date by bringing a dizzying array of products to market in the next year. OEMs reportedly plan to roll out their first systems by the end of 2000, but some chip makers are already shipping limited quantities of 10-Gbit Ethernet components to get a jump on the market.

Many observers are urging buyers to exercise caution, however. Until the standard is set, these components will be noncompliant, creating a bit of a guessing game for OEMs. And until a market for the technology gels, chip makers will be hard pressed to develop low-cost, interoperable components.

"The ability of chip makers to deliver [10-Gbit Ethernet] components will be a challenge," said Tony Lee, president of the new alliance and director of product marketing at Extreme Networks Inc., Cupertino, Calif. "When you talk about [10-Gbit components], you have to worry about thermal dissipation, reliability, and cost."

Extreme, a supplier of Layer 3 switches for Ethernet-based networks, is one of seven founding members of the 10-Gigabit alliance. Other members are Cisco Systems, Intel, Nortel Networks, Sun Microsystems, 3Com, and World Wide Packets. As its first order of business, the alliance announced that the IEEE has authorized the creation of the 802.3ae 10-Gigabit Ethernet Task Force to develop the standard for the technology.

The task force will develop standards for two types of physical-layer (PHY) chips for the LAN and WAN. Sometimes called a transceiver, the PHY IC is a key component that sends and receives signals over the network. The task force will also create single- and multimode fiber-optic standards. Multimode fiber is designed to transport short-haul data at distances up to 300 meters, while single-mode media will handle long-distance traffic up to 40 kilometers.

In the past, Ethernet technology has been a de facto standard mainly geared for the LAN-only business environment.

But 10-Gbit Ethernet technology will extend to the WAN, creating the long-awaited convergence between the two networks. As a result, the technology will move into direct competition against the likes of ATM, SONET, and other WAN-only protocols.

Traditionally, ATM and SONET carry data traffic to high-speed, nationwide backbones, which utilize an optical technology called Dense Wavelength Division Multiplexing. However, given the pervasiveness and inexpensive nature of Ethernet technology in the LAN -- and now possibly the WAN -- some observers said 10-Gbit Ethernet technology could put ATM and SONET out of business.

Despite such predictions, the impending death of the rival protocols is greatly exaggerated, said Greg Collins, an analyst with the Dell'Oro Group Inc., Portola Valley, Calif. "While [10-Gbit Ethernet technology] will sell at lower price points than ATM and SONET, there's a big question whether it will replace SONET or ATM," he said.

Ken Brizel, strategic marketing manager at Lucent Technologies Inc.'s Microelectronics Group, Allentown, Pa., said 10-Gbit Ethernet will coexist on the WAN with ATM and SONET. "I don't think ATM or SONET is dead," said Brizel, whose company is a supplier of chips for ATM, Ethernet, and SONET applications.

Still, OEMs and chip makers are rushing into the 10-Gbit Ethernet market, which is expected to reach $1 billion in revenue by 2004, according to Collins.

In fact, a slew of LAN-based PHY-IC makers are readying their chips, including Agilent Technologies, Applied Micro Circuits, Lucent, and Vitesse Semiconductor Corp.

In June, Vitesse plans to introduce the first in a family of PHY ICs for 10-Gbit Ethernet applications, said Fred Weniger, product manager at the Camarillo, Calif.-based company. Its PHY-IC offering for 10-Gbit applications incorporates four separate transceivers. The chip will begin sampling by mid-2000.

No matter how many chip makers are behind the technology, OEMs may have to pay a price for being the first on their block to field 10-Gbit Ethernet products, said John Hawkins, product manager for the Microelectronics Group of Canada's Nortel Networks Corp. "Right now, there are a variety of debates" concerning the standard, Hawkins said. "There's a debate about serial data. There's an option for parallel-based fiber. And it gets more complex from there."
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