Here is the full Benhamou article. Uh, I think DLGC is in the right business. Wish I had some more cash! bp
3COM CEO Eric Benhamou Predicts Cost Savings of
Converged Networks During Keynote to Red HerringConference
biz.yahoo.com April 6, 4:33 pm Eastern Time
Company Press Release3COM CEO Eric Benhamou Predicts Cost Savings of
Converged Networks During Keynote to Red HerringConference
SAN FRANCISCO--(BUSINESS WIRE)--April 6, 1998--''Thirty percent of corporations will
be taking advantage of converged data, video and voice networks by the millennium,'' Eric
Benhamou, 3Com chairman and CEO, said today during a keynote address to the Herring on the
Enterprise conference in San Francisco. ''This convergence of networks will generate up to $10
billion in annual savings that can be reinvested in customer service, new business opportunities and
new technologies.''
Most corporate enterprises today employ multiple network infrastructures to support applications,
including voice, video and data transmissions. By converging and integrating the parallel networks,
corporations will be able to substantially reduce communications, operations and network
management expenses. 3Com Corporation (NASDAQ:COMS - news), a leader in developing
and implementing next-generation networking technology, recently estimated the global market for
capital equipment to enable convergence technology in the enterprise to be $15-20 billion a year
by 2003.
A typical enterprise could potentially reduce its long distance telephone expense 30 to 50 percent
by placing its voice traffic on the data network. ''The technologies used to build data networks are
now far more sophisticated and better adapted to handle multiple types of communications,
including voice,'' said Benhamou. ''We have added intelligence to our data networks -- not just in
the core, but also in the access infrastructure and at the network access points -- to handle
multiple classes of service over a common TCP/IP-based protocol infrastructure.''
The trend toward network convergence is accelerating the strategic alignment of
telecommunications vendors and data networking companies. This close working relationship will
yield more coherent architectures supporting converged network services across the enterprise,
small business, and consumer markets.
Network convergence will also lead to the development of more integrated networked
applications. Benhamou predicted new uses and efficiencies for many industries, include retail,
finance and education. ''Among other emerging applications, network convergence will enable
distance learning to deliver real time video, voice and instructional text from a classroom to a
remote student, and even allow collaboration on a virtual white board.''
During his remarks, Benhamou outlined some of the necessary transitions to implementing next
generation networks, including:
Moving the public access network from analog to DSL (digital subscriber lines) and cable
technologies Creating intelligent network access points
Further deregulation of the telecommunications industry
Developing a new generation of networked applications, adapted to converged network
services
Making networks more accessible and affordable to the small business and consumer
markets
Further extending the network from desktops and servers to laptops and palmtops
Benhamou pointed to some large enterprises, including United Parcel Service (UPS), that are
already planning to deploy next-generation networks for customer benefit and increased efficiency.
''A UPS customer will often use the Web site to track a package, but still wish to speak to an
operator for confirmation. The customer uses a data network for the Web transaction and a voice
network for the telephone conversation. UPS is in the process of combining this parallel traffic into
a single converged network in order to improve customer service and save operational costs.''
About 3Com
3Com Corporation enables individuals and organizations worldwide to communicate and share
information and resources at anytime from anywhere. As one of the world's preeminent suppliers
of data, voice and video communications technology, 3Com has delivered networking solutions to
more than 100 million customers worldwide. The company provides large enterprises, small and
medium enterprises, carriers and network service providers, and consumers comprehensive,
innovative information access products and system solutions for building intelligent, reliable and
high performance local and wide area networks. For further information, visit 3Com's World Wide
Web site at 3com.com or the press site at http//www.3Com.com/pressbox.
Note to Editors: 3Com is a registered trademark of 3Com Corporation. Contact:
3Com Corporate Communications Peter Ruzicka, 408/764-5853
Peter_Ruzicka@3Com.com More Quotes and News:
3Com Corp (Nasdaq:COMS - news)
Related News Categories: computer peripheral, computers, internet, networking, telecom
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