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Technology Stocks : Brocade Communications
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To: Fred Williams who wrote ()9/3/1997 8:12:00 PM
From: Steve Scribe   of 55
 
Fred, here is what Cal Nelson, the new President of Ancor and
former VP of Engineering said at the annual meeting regarding class 1:

<<-When asked about class 1 switches Cal Nelson said that as systems
become saturated that is when class 1 really starts to pay off.
Connectionless switches(class 2,3)start collapsing when they get overloaded.
Just like ethernet you can load it up to a certain point and then
it starts collapsing. Thats when class one is needed. On real
small systems you can get by with class 2 or 3. He also said there
are big hurdles to any competitors developing class 1 switching.
Also, Ancor will be getting patents on the next generation switch.
Attractive candidates for class 1 include video applications,
data backup, geosismic, and CAD/CAM.>>

A good analogy of a large scale system is the phone system.
It is a class 1 connection based switching system. It would collapse
quickly if it was connectionless (class 2 or 3) because of the
constant interruptions and constant efforts to reconnect from those
interruptions and from the time it takes to keep reconnecting.

Also, someone posted a while back on AOL and SI that Brocade's
switches suffer SEVERE congestion if more than 32 ports are used.
I can't confirm the accuracy of that post but perhaps you could
as part of your due diligence before investing in the Brocade IPO.

Another consideration for large systems is the fact that Ancor
sells 64 port switches. You would have to waste a lot of ports connecting
and cross connecting Brocades 16 port switches in order to get
64 useful ports.

Regards,
Steve

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