3Com Outlines Strategy for Continued Leadership in Small- to Medium-sized Enterprise Networking and Personal Internet Access
SANTA CLARA, Calif.--
3rd Annual "Networking Connections" Conference for Financial
Analysts Turns Out More Than 150 From Around the Country
At a networking industry conference for financial analysts yesterday, 3Com Corporation (NASDAQ:COMS) outlined its strategies for continuing to lead the industry in providing networking and Internet access solutions for small- to medium-sized enterprises and for individuals.
Small- to Medium-Sized Enterprises (SME)
Currently, the SME segment of the networking market, which includes workgroup hubs, switches, remote access servers, and boundary routers, is estimated to be approximately $8 billion per year, growing to $25 billion by 2003, according to certain industry analysts.
"With less than 20 percent of small- to medium-sized businesses being networked today, many analysts expect the SME segment to grow faster than any other part of the networking market," said Edgar Masri, Senior Vice President for 3Com's SME Business Unit. "3Com is the leader in the SME segment, based on its product leadership position in every category servicing small- to medium-sized enterprises. 3Com has accomplished this by having the broadest and deepest relationships, with more than 40,000 resellers worldwide, and by offering customers many clear advantages that will enable us to further expand this leadership."
Mr. Masri outlined the additional advantages 3Com has with manufacturing cost leadership, brand recognition and product ease of use. Mr. Masri noted that 3Com was the first company to address the unique networking needs of small businesses with a product line designed specifically for small business, and announced that since its introduction in 1996, 3Com's OfficeConnect(R) line of small business networking products has shipped more than 10 million ports.
Personal Internet Access
Neil Clemmons, Vice President of Consumer Marketing for 3Com, briefed analysts on 3Com's Personal Internet Access business. While outlining 3Com's strategies to lead the next generation of "always-on", digital access through xDSL and cable modems, Mr. Clemmons emphasized that the primary method of Internet connectivity for consumers will remain analog modems through 2000 and beyond.
Citing a Visionquest study, Mr. Clemmons stated that approximately 80 percent of 90 million new personal Internet connections in 2000 will be via analog modems, with 98 percent of those being V.90 (56Kbps(1)). Mr. Clemmons stated that more than 800 ISPs are live today with V.90 dial-up access including America Online, IBM Global Services, MindSpring, UUNet, and Web America. He also emphasized 3Com's ability to provide users with a superior Internet experience by having technology on both ends of the dial-up connection, through U.S. Robotics(R) modems and 3Com Total Control(tm) remote access servers.
Palm Computing
Since its introduction in 1996, more than 1.6 million handheld computers built on the Palm Computing(R) platform have been sold, capturing 63 percent of the worldwide market according to Dataquest. At the briefing, Janice Roberts, Senior Vice President of 3Com and acting President of 3Com's Palm Computing subsidiary, stated that the Palm Computing platform is now supported by more than 7,500 software developers, as well as over 200 hardware developers.
Ms. Roberts indicated that in the future Palm Computing's line of handheld computers would continue to be enhanced with more power, smaller, more streamlined form factors, and expanded connectivity capabilities to the Internet, enterprise data and converged networks. "Our goal," stated Ms. Roberts, "is to maintain 3Com's market leadership position through continued innovation and strategic partnerships and to establish the Palm Computing platform as the next paradigm in universal connectivity."
About 3Com Corporation
3Com Corporation enables individuals and organizations worldwide to stay more connected by communicating and sharing information and resources anytime, anywhere. As one of the world's preeminent suppliers of data, voice and video communications technology, 3Com has delivered networking solutions to nearly 200 million customers worldwide. The company provides large enterprise, small and medium enterprise, carriers and network service providers, and consumers with 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 3com.com.
Note to Editors: 3Com, OfficeConnect, and U.S. Robotics 56K modems are registered trademarks and Total Control is a trademark of 3Com Corporation.
Palm Computing is a registered trademark of 3Com Corporation.
(1) 56 Kbps technology refers to server download speeds only and
requires compatible modems at server sites. All V.90 products are
capable of 56 Kbps downloads; however, due to FCC rules which
restrict power output of service providers' modems, current
download speeds are limited to 53 Kbps. Actual speeds may vary
depending on line conditions. Uploads travel at speeds up to 31.2
Kbps. Requires phone line compatible with 56K technology.
CONTACT: 3Com Corporation
Leslie Davis, 408/326-7187
Leslie_Davis@3Com.com
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