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Technology Stocks : INTERPHASE(INPH): Good future for this stock

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To: peter a. pedroli who wrote (732)1/2/2001 10:35:34 AM
From: peter a. pedroli  Read Replies (1) of 825
 
Networking Remains Hot Spot For
Integrators
(12/22/00, 1:03 p.m. ET) By Larry Hooper, CRN

While networking equipment vendors sweat the
possibility of a slowing economy and an industry-wide
slowdown in service provider spending, 2001 is ripe
with opportunities for network integrators focusing on
enterprise clients, industry observers say.

Equipment makers, analysts and integrators say two
technologies will drive networking business in the
enterprise space: voice-over-IP and wireless.

While both technologies have been hyped as the next
big thing for the past few years, the products -- and the
interest from clients -- are both finally in place.

"The voice-over-IP market is in its infancy," said Susan
Rullo, Avaya division manager at integrator Point to
Point Network Services, Methuen, Mass. "Last year
was an educational year. Clients wanted to talk about
voice, but they didn't want to write a check for it.”

Indeed, the VoIP market should show significant
growth over the next three years, said Ed Schwabe, an
analyst at Phillips Group-InfoTech.

"As more and more companies get into broadband data
networking, they find they have the bandwidth to lay the
voice right on top of the network," Schwabe said. "The
companies with 10,000 or more lines aren't totally sold
yet. The opportunities lie in the smaller companies and
in branch locations of the bigger companies."

That leaves the solution provider in a strong position to
take VoIP to market, said Nick Pegley, vice president
of small business and enterprise marketing at Nortel
Networks Corp. (stock: NT).

"The integration of voice and data will be very big
business next year," Pegley said, "and the channel is
going to be very involved because the enterprise clients
will go to their solution providers to get it."

It's no longer a question of whether companies will
eventually switch to VoIP, Rullo said.

"Now the question is who they're going to buy it from,"
Rullo said.

On the wireless side, wireless LANs and remote
wireless broadband access to corporate networks from
public facilities such as airports and hotels will serve up
immediate opportunities for integrators next year,
Pegley said.

"There's a huge interest in the wireless LAN area," he
said. "And as it's an extension of the data structure,
companies will look to their solution providers to get
this done."

Kevin MacRitchie, vice president of customer
satisfaction and training at Worldwide Channels for
Cisco Systems Inc. (stock: CSCO), agrees.

"The hottest area in the wireless space for channel
partners is wireless LANs," he said.

MacRitchie said he also sees integrator opportunities at
hotels, airports, and public facilities, all of which desire
wireless networks that will allow business travelers to
secure broadband access to their corporate systems.

On the mobile wireless side, access to enterprise
networks via mobile phones and PDAs is still in
question. Wireless form factor will continue to be the
ongoing debate among integrators who voice the need
for fusion of PDAs and cell phones.

"Until we come up with a reasonable design, cell
phones will be impracticable for browsing the wireless
Web," said Jeff Bernardis, vice president of wireless
applications at San Francisco integrator Cotelligent
Group Inc. (stock: CGZ). "Vendors will have to devise
a bigger screen and [a] better interface."
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