To: Tony Viola who wrote (87426 ) 8/30/1999 12:14:00 PM From: Nevin S. Respond to of 186894
Anybody see this on Techwebteledotcom.com Intel Pushes Into Network Chip Market By Marcia Savage, Computer Reseller News INTEL NEXT WEEK plans to make a big push beyond Personal Computer processors to the hot market of networking. Intel, based in Sata Clara, Calif., will extend its reach from desktops and laptops into the carrier and enterprise networking markets using packet processing technology from two of its recent acquisitions: Softcom Microsystems, Fremont, Calif., and Level One Communications, Sacramento, Calif. Intel plans to reveal its game plan at a developers' conference in Palm Springs, Calif., next week, sources said. Intel will introduce the Internet Exchange Architecture, a set of hardware and software building blocks that includes a processor and accompanying chips, sources familiar with Intel's plan said. The product's processor, based on Intel's StrongARM core, is not expected to ship until later this year. The product details follow Intel's announcement in April that the company planned to jump into the network processor market. At that time, Intel said it was going to offer network processor components that would allow new features to be added "quickly and economically to multiprotocol enterprise- and service provider-class switches, routers and access concentrators." The software-programmable network processors would give equipment vendors the ability to add features to their products well into the development cycle or after products have shipped, compared with traditional ASICs, which force vendors to lock down feature sets 12 months to 18 months before a product release, according to Intel. For Intel, the network processor market is key because of the shrinking prices on PC processors, analysts said. "Intel is good at doing relatively complicated designs, manufacturing them at high volume and they like to sell their stuff at high prices," said Nathan Brookwood, an analyst at Insight 64, Saratoga, Calif. "But [Intel] is running out of people who will pay $200 for a microprocessor that goes into a PC," he said. "[Intel] is saying a Cisco or Lucent could build a box that does more than their current boxes, has higher performance, ports more line, costs less to make and is more flexible, which the end user wants so they can expand, add more services or reconfigure their network on the fly," Brookwood said. Intel executives said the company intends to be the "building-block supplier" to the Internet. To that end, they are focusing on components for the Internet, including networking devices, servers and a new range of services. Intel declined to comment on unannounced products.