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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00150-28.6%Dec 11 9:30 AM EST

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To: joe who wrote (22101)9/23/1998 11:30:00 AM
From: Moonray  Read Replies (1) of 45548
 
3Com Connects In High-Speed Modems
Computer Reseller News - September 21, 1998

When 3Com Corp. merged with U.S. Robotics in June 1997, it not only acquired that company's
name and product line. It also received the honor of continuing to sweep all three business
categories of the CRN Inside Spending brand-preference poll for high-speed modems.

In the annual survey of MIS managers, 3Com, Santa Clara, Calif., had the most
widely installed modem base in the small-, midsize- and large-business markets.

Modems from 3Com were in use at 63 percent of large businesses, 51 percent of
midsize businesses and 43 percent of small businesses. These represent strong
gains over the corresponding figures from last year's poll, when the former
U.S. Robotics was the brand of choice.

3Com's closest rivals in this category, Hayes Microcomputer Products Inc.,
Norcross, Ga., and Motorola Inc., Schaumburg, Ill., placed a distant second
and third, respectively.

Hayes and Motorola each claimed 6 percent of the large-company installed
base. In the midsize-market space, Hayes earned 9 percent and Motorola earned
7 percent. Among small businesses, Hayes was named by 7 percent of respondents
while Motorola was named by 4 percent.


3Com officials said the company's broad product line was a key factor in taking such a large share
of the corporate modem business. "We don't just do desktop modems," said Don Fotsch, vice
president of product management for the Personal Communications Division at 3Com.

"Enterprise customers want one-stop shopping," Fotsch said. "Our PC Card modem offerings; our
Courier high-end, corporate-oriented products; and the new 3Com [after the merger with U.S.
Robotics]-which includes network interface cards, hubs and so on-give us an extremely broad
portfolio and puts us on the track to meeting their needs."

3Com also offers modems specifically for the small-business market, Fotsch said.

"We have some third-party SOHO software we bundle with 3Com modems for SOHO operations,"
he said. "Also, our line of Office Connect products lets businesses use ISDN or analog lines to
connect their LANs to the Internet or a corporate intranet. In the past, this required equipment
costing $10,000 to $15,000, but now it can be done for $400 to $500."

Good brand awareness is also important, Fotsch said. "Don't forget the U.S. Robotics brand. . . .
That goes all the way through our product line," he said.

Several other factors have contributed to 3Com's success, Fotsch said, including reliability and a
track record of supporting corporate customers.

Just as critical, he said, is product performance. "Standards compatibility is a significant issue. . . .
Relative to the competition, we have a strong track record of not only supporting [the latest]
standards, but of being first with new products," he said.

Copyright r 1998 CMP Media Inc.

CAN YOU SAY MONOPOLY?

o~~~ O
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