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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: Ernie Zambon who wrote (161)9/7/1996 12:19:00 AM
From: Dan Spillane   of 42804
 
MRVC's "Deterministic Ethernet" announced...

What does it mean?

The term in this case would seem to be a comment on the inherently *non-deterministic* nature of Ethernet and the underlying CSMA/CD algorithm, especially under higher load. In other words, the improved MRVC algorithm which can anticipate collisions really acts more like ATM...almost, (but not quite) isosynchronous. Important for voice and video.

For laymen:
I other words, when the Internet load goes up, performance is more predictable (deterministic) and does NOT degrade in a manner characteristic of everyone else's ethernet network. This is presumably the ethernet algorithm MRVC has filed a patent on...?

I should add..."deterministic" networking is critically important to carry video and audio. You cannot tolerate an unknown propagation time when it comes to live video or audio. But there is more...

An even wider appeal of a deterministic ethernet would be a guaranteed (and calculable) response time for the average enterprise application. One of the biggest problems in corporate TCP/IP applications is varying levels of performance, depending on load conditions. Application response time becomes critically important in certain high-volume data applications. I believe corporations would drool over a "flatter application response time curve," and pay handsomely for such a solution.

I could also see the other network vendors drool over MRVCs algorithm...so much so, perhaps they would license it. Intel, Cisco, 3Com, ...? It becomes immediately clear to me why Intel is partnered with MRVC.

One need only look at the MRVC product line, partners, earnings growth, and surprisingly small market cap...
It isn't a just another "story company," It's a "story company, undervalued based on current earnings, with profitable solutions which hit customer needs squarely."

I ask myself how a small networking company could become the "Next Microsoft," and then MRVC strikes again--ahead of the pack--and this time with a patent in hand?

Dan
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