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To: Jules B. Garfunkel who wrote (88049)	9/9/1999 8:12:00 PM
From: Paul Engel	Read Replies (3) \| Respond to of 186894

Jules - re: "That something, I believe, is the Intel Network support Chips. I don?t believe that the analysts know how to size this potential market, and I am one of them. Therefore, could you please put into layman?s terms what you believe the potential is for this new market? Could you also please tell us how IBM?s future entry into this market might stack up against Intel?s entry." The potential is large - very large - conceivably ONE controller chip per router or switch that is manufactured. However, this "potential' assumes that programmable router/switch Controller CPUS become accepted practice in that kind of equipment. For Intel, the risk is that their implementation of such a controller chip does NOT become an accepted standard - a situation which will probably not become clear for 12 or 18 more months. IBM represents an ALTERNATE choice for router/switch makers. Another jeopardy is that Intel wants to sell COMPONENTS to the router/switch manuafcturers as well as COMPETE head to head with them. Clearly, this is an untenable position in the long run. Paul

To: Jules B. Garfunkel who wrote (88049)	9/9/1999 8:21:00 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 186894

Direct to you from the Better-to-Keep-Your-Mouth-Shut-Department: It really simple: Pretend a Switch is a PC. The market now consists of many different vendors, each with a proprietary chip and an operating system to run it. Pretend existing PCs are applications. What Intel intends to do is create a chip that will run a generic switch. Intel estimates the Market to be three hundred million switches. Anyone like an IBM who may attempt to proprietize (sp?) the market will go the same way as the Micro Channel. If they do attempt to make their product generic, then they better be the low cost manufacturer. Pretty simple, huh? (I am ducking under my desk even as I press the 'Submit Response' key.) :) Duke

To: Jules B. Garfunkel who wrote (88049)	9/10/1999 12:40:00 AM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Jules & Intel Investors - Intel's Networking Architecture is off to a START ! Cabletron may be the first to implement a router and a switch with Intel's new CPU architecture ! Cabletron Pumps Up Internet Routers and Layer 3 Switches With Level One's Internet Exchange Processor Intel's Internet Exchange Architecture to Speed Design of New Applications and Services in Cabletron's SmartSwitch Router Platforms Paul {=============================} Thursday September 9, 3:59 pm Eastern Time Company Press Release Cabletron Pumps Up Internet Routers and Layer 3 Switches With Level One's Internet Exchange Processor Intel's Internet Exchange Architecture to Speed Design of New Applications and Services in Cabletron's SmartSwitch Router Platforms ROCHESTER, N.H.--(BUSINESS WIRE)--Sept. 9, 1999-- Cabletron Systems (NYSE:CS - news) today announced that it will collaborate with Level One Communications, an Intel company, to design and develop faster networking products by combining the speed of Level One's new network processor chip with the Layer 4, application-aware functionality of Cabletron's industry-leading SmartSwitch Router (SSR) family. Based on Intel's recently-announced Internet Exchange Architecture (see Intel Unveils New Internet Communications Architecture, dated 9/1/99), the flexible, programmable interface in Level One's IXP1200 network processor is used to speed the design of Cabletron's SSR family, offering a wider array of applications and services to Cabletron's customers. Level One's new network processor augments the routing ASIC chips in Cabletron's SSR family, and provides the flexibility necessary to handle the explosion in emerging web-based applications. ''We're pleased to be one of the first in the industry to work with Level One on an endeavor that will have a huge impact on our customers,'' said Cabletron chairman and CEO, Piyush Patel. ''Together, Cabletron and Level One are building the next-generation of intelligent, wire-speed solutions.'' The micro-engines in the IXP1200 provide the performance, scalability and flexibility necessary to augment high-speed routing ASICs in the SmartSwitch Router with VPN and enhanced QoS features, allowing Cabletron to bring to market a smarter generation of Layer 3 switches and Internet routers. ''Cabletron continues to maintain industry leadership in the ASIC-based Layer 3 and Layer 4 switch market,'' said P.G. Menon, Cabletron's senior director of product management. ''Our work with Intel, and now with Level One on its line of programmable networking silicon, shows Cabletron's commitment to continue offering best-of-breed technology to our customers.'' Cabletron's SSR was recently ranked number one in revenue and port shipments for ''Low-Blocking Layer 3 Switching'' by GartnerGroup/Dataquest (see related press release, dated 8/24/99). The SSR also captured market share leadership for total ports shipped in the rapidly growing Modular Layer-3 Switched category, according to a recent Dell'Oro Group report (see related press release, dated 8/19/99.) About Cabletron Systems 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. -------------------------------------------------------------------------------- Contact: Cabletron Systems Ann Kelly, 603/337-2588 akelly@cabletron.com -------------------------------------------------------------------------------- More Quotes and News: Cabletron Systems Inc (NYSE:CS - news) Related News Categories: computer peripheral, computers, internet, networking

To: Jules B. Garfunkel who wrote (88049)	9/10/1999 5:54:00 AM
From: Amy J	Respond to of 186894

Re: "That something, I believe, is the Intel Network support Chips. I don?t believe that the analysts know how to size this potential market" Jules, I agree in part (i.e. I don't think they exactly know the size of this potential market, their scope appears to be smaller than what the opportunity really is), but I disagree the opportunity is mainly/only Network as you defined it to be- it's also possibly a large telco opportunity as it probably relates to McKinley (i.e.the Server biz where margins are large), and here I would say the analysts probably have somewhat limited data as to the real opportunities here since a lot of these emerging startups (using technology which could be possibly better driven by Intel chips) are either privately held companies (who don't report) with a lot (maybe 85%) of their business happening internationally. Much of this data could be out-of-reach to the analysts, so they may not necessarily see things changing underneath them. I'd also say they are overly pessimistic on the concept of standards in this other market, the Network market. While there are bumps, it's my perception the technology and market have advanced so that standards may be feasible. I don't think the analysts (an extremely conservative bunch) view it this way, which is fine. It gives us Intel investors lead time. I think analysts tend to be focused quarterly and annually, while CTO's are focused on visions that extend well beyond the quarterly curve. This is probably too soft of a science for straight accounting, which tends to look back, not forward. And it will probably involve more of an engineering mindset to get in there and really look at the technological issues around standards, instead of taking the same old position of, "we'll believe it when we see it." By the time some analysts see it, the stock may have risen (again). In fact, I would predict we may begin to see more analysts start focusing on the risk of this type of technology because, moving forward, the potential gating item for Intel and these two markets will be the risks in technology, not the market opportunity. Best, Amy J