Extended Systems is a very well run company that has done quite well with un-exciting products. They were a major part of the "printer sharing" (pre LAN) era and rode the coattails of the HP LaserJet (which was produced across the street in Boise, ID). They have always had very high product quality and excellent support, and mostly dull products. They have an excellent reputation with resellers but little recognition in the end user community.
They missed a major opportunity back in the 80's to dominate LAN print servers. The problem was due to the classic HP problem (all the founders were from HP) of ethnocentrism. "Why use a LAN when our ShareSpool will share the printer at a lower cost." Today, this era in their history should be looked at is a point of strength, as it did not kill the company. They are financially conservative and intelligently managed.
Today they have a number of different products, sold in several different ways. They do still sell print servers, Port extenders for laptops, database software, InfraRed desktop communication system, the ExtendNet VPN server and ExtendNet IAS everything box for the Internet. Excellent diversification and good distribution.
Their biggest problem is vision and ability to move quickly enough to take advantage of opportunities in the market. Perhaps this is a reflection on their careful, though out, planned mentality; which has saved them from technology pitfalls in the past.
They have some BIG opportunities now. They have a very dominate position in the desktop infrared communications (connect your laptop to the internet by just putting down on your desk and turning it on!) which seems to be mostly an OEM business for them. It is slick technology, works well and may take off. If so, they will win BIG.
Their ExtendNet products are also a huge opportunity. Someone in the press hit the VPN Box as "Pathetic" but that now looks like the writer was a loose cannon. The VPN box is standing almost alone as a solution for smaller businesses to take advantage of the Internet for remote access. The VPN technology is a bit complex but that gives their resellers the opportunity to sell high margin consulting services. The other half of the ExtendNet (IAS) they OEM from Apexx Technology (also in Boise). It has almost everything a small business would want for the Internet, is easy to install and works well. The problem here is that this is such a HOT market, another new company announces a like product every week. Most of them are VC backed with deep pockets and lots of high powered marketing. The jury is out as to the success of Infrared, but everyone knows the small business market Internet business will be huge. This is the 90's. ExtendNet is good technology in the right market, but can Extended Systems work quickly enough to become a dominant player? Perhaps they will take the IPO funds, buy Apexx, more tightly link the two products and be huge. Can they handle an exciting product??
XTND will NOT be another Netscape or SystemSoft, but it sure could be another HP. The down side is minimal and the up side is good. |
