Asante Launches Worldwide OEM Division; Kicks Off European OEM Effort At CeBIT
BusinessWire, Monday, March 16, 1998 at 08:11
HANNOVER, Germany--(BUSINESS WIRE)--March 16, 1998--
Silicon Valley-Based Technology and Systems Design Expertise Offers
Competitive OEM Solutions as Switch Pricing Spirals Downward
Asante Technologies (NASDAQ:ASNT), a leading provider of
high-performance networking solutions for graphics and image-intensive
applications, today launched a new division dedicated to servicing
worldwide networking OEMs. The company introduced the new division in
conjunction with its presence at the CeBIT '98 trade show, March
19-25. Asante is located in Hall 11, Stand C40-Booth A8.
As OEM customers struggle to keep up with the rapid rate of
change in the networking industry -- with switched Ethernet moving to
the desktop and 10/100 switch pricing fast approaching the $100 per
port level -- Silicon Valley-based Asante is forming a new division to
offer high-quality products at extremely competitive pricing to OEMs
in Europe, North America and other strategic markets worldwide.
A market opportunity for OEMs
The exploding LAN switch market presents tremendous growth
opportunities for OEMs as well as challenges to stay competitive in an
increasingly volatile market. Like the PC market, where the sweet-spot
of $1,000 will help put a computer in every household, the networking
market is expected to undergo similar fundamental change. Analysts
predict switches will overtake hubs to "be the device of choice for
delivering bandwidth to desktops."
International Data Corporation forecasts a 66 percent compounded
annual growth rate in desktop LAN switch port shipments by the year
2001 (to 40.7 million), in contrast to minus six percent growth in the
Ethernet hub market (decreasing to 36.2 million by 2001).
This growth in switch deployments is being fueled in large part
by plummeting prices. Dual-speed 10/100 switches are currently offered
at a range of $125-$175 per port list, but are expected to reach the
$100 mark over the next six months. Similarly, price pressures are
pushing 10+100 Ethernet switches below $50 per port list. Asante
recently released its unmanaged FriendlyNet 8+2 switch at a
breakthrough price of $37.90 per port list (or $29 street).
Lower prices for high performance switches let end users -- once
forced to use hubs -- apply switching to desktop and workgroup
applications, according to Bill Fenley, senior director of the OEM
Business Division at Asante.
"Demand for desktop switches is exploding, driven by rapidly
declining switch prices," Fenley said. "OEMs are looking for partners
who can keep up with the pace of technical change, while meeting
aggressive cost targets and compressed schedules."
*T
Asante offers a number of advantages to OEMs in Europe and
worldwide, including:
-- Keeping up with the changes in emerging technologies: Asante will
push the envelope, offering breakthrough pricing on first to
market products and sharing that advantage with OEM customers.
-- Delivering breakthrough pricing: Asante has proven its ability to
engineer and manufacture products with breakthrough pricing and
performance. FriendlyNet 8+2 switches, introduced to Europe at
CeBIT 98, is a leading edge switch for desktops and workgroups
priced at $29 and $39 per port street, respectively. Asante was
the first... first-to-market pricing for this type of switch
product.
-- Silicon Valley engineering plus flexible, turn-key manufacturing.
Based in the heart of the Silicon Valley, the company combines
the latest in technological innovation with agile, low-cost
offshore manufacturing -- making Asante the kind of flexible,
turn-key supplier OEMs need to keep up with a fast-changing
market.
-- Commitment to the OEM customer. In Europe and North America,
Asante is continually expanding capacity, programs and products
tailored to meet network OEM customer needs. Asante offers a
broad range of cost effective, reliable cross-platform networking
products, from Ethernet and Fast Ethernet hubs and switches, to
adapter cards and software products -- all built to customer
specifications. The company offers significant discounts off list
price to OEM partners, depending on quantities, custom features,
and specific terms offered.
*T
For additional information about OEM sales, product catalog and
OEM pricing, contact Asante at 1-408-435-8401 ext. 395 or
1-408-432-7317 by fax.
About Asante
Founded in 1988, Asante Technologies, Inc. (NASDAQ:ASNT) is a
leading provider of high-performance networking solutions for digital
graphics communications and education markets. The company offers LAN
switches, hubs and adapter cards, as well as web-based network
management software and network acceleration tools. Asante products
are available through a worldwide network of VARs, system integrators
and distributors. For additional information, contact Asante at
800-662-9686 or browse the company's web site at www.asante.com.
Forward-Looking Statements
This news release, other than the historical financial
information, may consist of forward-looking statements that involve
risks and uncertainties, including quarterly fluctuations in results,
the timely availability and acceptance of new products, the impact of
competitive products and pricing, and the other risks detailed from
time to time in the company's SEC reports. Actual results may vary
materially.
CONTACT: Asante Technologies
Jennifer C. Doettling, 408/435-8401 ext. 282
jdoettli@asante.com
or
Fleishman-Hillard, Inc.
Ken Kadet, 612/337-0354 ext. 108
kadetk@fleishman.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED PRODUCT TRADESHOW
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