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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?


To: Dolfan who wrote (6614)8/24/1999 8:38:00 AM
From: polarisnh  Respond to of 8358
 
GartnerGroup Dataquest Reaffirms Cabletron Market Leadership in Layer 3 Switching

Dataquest Reports Cabletron SmartSwitch Router is Number One in Revenue and Ports Shipped in Newly Defined Low-Blocking Layer 3 Switch Category

ROCHESTER, N.H.--(BUSINESS WIRE)--Aug. 24, 1999-- Cabletron Systems (NYSE:CS - news) today announced that its award-winning SmartSwitch Router has achieved yet another independent industry ranking as a worldwide leader in Layer 3 Switching. According to a report issued by Dataquest on August 16, 1999, Cabletron's SmartSwitch Router (SSR) captured the number one position in both revenue and in port shipments for the newly defined ``Low-Blocking Layer 3 Switching' category during the first quarter of 1999. Updated market forecasts included in the report predict the Layer 3 Switch market will reach $12.1 billion in 2003.

``In a period of one year, Cabletron's SmartSwitch Router family has achieved number one market share,' said P.G. Menon, senior director of product management at Cabletron. ``This is especially remarkable considering Cabletron had never been viewed as a strategic routing vendor for enterprise or service provider backbone networks.'

Dataquest's forecast analysis, ``Redefining the Layer 3 Switch Market' restates its definition of Layer 3 switching and provides updated market forecasts to better reflect this dynamic market. According to the report, a switch meets Dataquest's low-blocking performance criterion if it can provide wire speed Layer 3 forwarding on all its Layer 3 ports when loaded with Layer 3 ports to at least 65 percent of its port capacity. The analysis details all manufacturer revenues and port shipments in the Layer 3 switch market, including 3Com, Cabletron Systems, Cisco Systems, Lucent Technologies, Nortel Networks and others.

Dataquest identifies various market accelerators driving growth and future opportunity, as well as a brief overview of the relationship between Layer 3 switching and traditional software-based routing. The report also details customer deployment and usage criteria unique to Layer-3 switches, challenging vendors to demonstrate the return on investment provided by Layer 3 switching through ``real world' demonstrations in the client's host environment and providing network solutions that are increasingly able to identify and manage application traffic types.

``The total worldwide Layer 3 switch market, which grew to $804.4 million in 1998, is forecast to reach $2.5 billion in 1999,' said Todd Hanson, senior networking analyst, Dataquest. ``This growth will be supported by the increased need for raw routing performance capabilities in the enterprise driven by new application demands from E-commerce, Enterprise Resource Planning (ERP) and the convergence of voice, video and data.'

1999 2000 2001 2002 2003

Port Shipments (K) 5,421.8 12,692.5 23,493.7 37,942.4 58,848.6
Shipment Growth (%) 261.4 134.1 85.1 61.5 55.1
Manufacturer Revenue ($M) 2,401.5 4,951.8 7,056.3 9,102.7 11,505.8
Revenue Growth (%) 214.7 106.2 42.5 29.0 26.4
Revenue/Port ($) 442.9 390.1 300.3 239.9 205.0
Total Switch Ports (%) 6.7 10.9 15.3 20.7 28.3
Total Switch Revenue (%) 20.4 35.1 44.0 51.2 58.8

Source: Dataquest (August 1999)

Cabletron's SmartSwitch Router family is the industry's highest-performing, most reliable and secure line of backbone switch routers, delivering more than 30 million pps routed throughput, full-function wire speed IP and IPX routing and switching. Also, the SmartSwitch Router is the only Layer-3 switch family that offers full function WAN interfaces including Asynchronous Transfer Mode (ATM), Cable Modem Termination System (CMTS), Frame Relay, High-Speed Serial Interface (HSSI), Point-to-Point Protocol (PPP) and Packet over SONET (POS) in addition to Ethernet/Fast Ethernet and Gigabit Ethernet.

Cabletron's Smart Switch Router family continues to earn market-share leadership and industry awards for its performance and functionality. Most recently, InternetWeek Magazine awarded Cabletron the ``Best of Breed' Award for its SSR 8000/8600 series in its May 10, 1999 issue. Additionally, the SSR 8000 won the ``Product of the Year' award from Network Magazine in its May, 1999 issue and received Data Communications Magazine's ``Hot Product' award for the backbone switch category in January 1999.

About Cabletron

Cabletron Systems, a premier provider of world-class networking solutions, delivers reliable network access and communications to millions of people worldwide. With scaleable products designed for Global 1000 enterprise networks, service providers and small businesses, Cabletron is the e-business communications specialist in the Internet economy. Listed on the New York Stock Exchange for more than a decade under the symbol CS, Cabletron is an S&P 500 index company. Cabletron's web site can be reached on the Internet at cabletron.com.