Another example of NT's stealth strategy.........embedd OIE into every key edge hardware vendor to bring down the proprietary/high-cost CSCO routers.
On the surface it appears NT is simply trying to weakend it's foe's cashcow but in hindsight, NT is trying to commoditize routers and open up the Internet to the small/medium enterprises who are not prepared to pay the big bucks to CSCO to get connected into the IP network.
Of couse, once this snowballs and every small little business is IP enabled, you can imagine the demand on the backbone where NT specializes.......so it is a great strategy in that it can potentially kill two birds with one stone --- i.e. commoditize, drive down router price, and as result geometrically ramp up the demand for capacity playing right into NT's dominance in the optics field where the real battle for networking will be fought in the next 5 years.
As repeated many times, Scott McNeely could not have been more prophetic when he said "Network IS THE COMPUTER" except now he should that the "Network IS THE ROUTER" !!!
3/27/00 - Hyperchip And Nortel Networks Committed To Delivering Smarter Generation Of Network Equipment
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MONTREAL, Mar 27, 2000 (INTERNET WIRE via COMTEX) -- Hyperchip(TM) (www.Hyperchip.com), the Petabit Routing Company(TM), today announced that it has signed a license agreement with Nortel Networks* [NYSE/TSE: NT] to enable it to add the robust flexibility of Nortel Networks' Open IP Environment with the extreme scalability of Hyperchip's petabit routing architecture. Combining the power of Hyperchip's leading-edge architecture with Nortel Networks' advanced routing software will solidify Hyperchip's position as the leader in petabit scalability.
"We are excited about our relationship with Nortel Networks," said Richard Norman, Hyperchip President and CTO. "By combining Hyperchip's revolutionary connectivity hardware with Nortel Networks' state-of-the-art routing software, Hyperchip is building the most powerful routers on the planet. This will deliver the bandwidth that the Internet needs to support high-speed access on a massive scale".
"Hyperchip and Nortel Networks share a commitment to deliver a 'smarter' generation of high-bandwidth systems that can evolve at the speed of fiber. By combining Open IP Environment with Hyperchip's petabit routing systems, we will provide that power and flexibility."
Jeff Pickering, Open IP Environment engineering prime, Nortel Networks, said, "Time to market is a critical component in the success of a product, but it is equally important to provide a full-featured solution. The Hyperchip solution, using Nortel Networks' Open IP Environment, provides network designers with the best of both worlds -- flexibility and acceleration of a full solution."
Nortel Networks' Open IP Environment allows system vendors to quickly deliver robust and proven high-performance support for key routing protocols such as OSPF, SNMP, RIP, and BGP4. This avoids the traditional trade-off between broad support and time-to-market, allowing network equipment vendors to bring sophisticated products to market faster and at lower cost. The modular architecture enables developers to choose features and capabilities based on the size and type of device to be IP-enabled, from PDAs to large routers. Open IP is a big step toward building a more reliable, more secure, faster Internet and is driving a shift from expensive, complex "Old World" routers.
Hyperchip's petabit routing architecture allows IP routing to scale from terabits to petabits per second of aggregate port bandwidth. These extreme-performance routers are based on Hyperchip's massively parallel semiconductor technology, producing systems that scale to 65,536 high-speed ports to allow routing technology to unleash the bandwidth potential of optical fiber.
About Hyperchip
Hyperchip is a Montreal company whose investors include Siemens Mustang Ventures, Argo Global Capital (backed by several leading telco carriers), Vertex, Vontobel, Advent and TechnoCap. Founded in 1997 after 10 years of patent work and 4 years of proof-of-concept work, Hyperchip has pioneered major advances in key computing and communication technologies. Hyperchip is the leader in petabit scalability for the WAN, and is driving the merger of the world's networks to provide end-to-end multi-gigabit connections between users, servers and storage, regardless of distance. More information about Hyperchip can be found at www.hyperchip.com.
About Nortel Networks
Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever. It is redefining the economics and quality of networking and the Internet through Unified Networks* that promise a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
Hyperchip and the Petabit Routing Company are trademarks of Hyperchip Inc. *Nortel Networks and Unified Networks are trademarks of Nortel Networks. Other trademarks identified in this release are the property of their respective companies.
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