Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Greg h2o who wrote (31957)	5/15/2001 1:22:59 PM
From: James Calladine	Read Replies (1) \| Respond to of 42804

FROM LIGHT READING YESTERDAY (posted before????) <<<Today's focus: MRV's Zuma goes to the edge By Marguerite Reardon This month, Zuma Networks, an MRV Communications company, announced its Linux-based LightReef product, an edge networking device that incorporates security and IP services features. The company has positioned itself among switching companies like Cisco, Riverstone, Foundry and Extreme, as well as companies focusing on subscriber management and service provisioning like CoSine and Nortel Networks, along with a slew of start-ups like Celox Networks, net.com and Quarry Technologies. Zuma's product functions as a Layer 2 through Layer 4 switch/router that also incorporates IP services and security features such as firewalls and VPNs. Integrating application-level switching with security service provisioning is an ongoing trend, says Ron Westfall, an analyst with Current Analysis. Nortel has already been talking about integrating its Shasta 5000 service creation platform with its Alteon Web switch, he adds. "There's an ongoing effort to integrate application-aware switching and subscriber management service switching," he says. "I think that Zuma is hitting on an area of convergence within the industry. However, I have to see more of their story to see how they differ from other companies." The company sees its open Linux operating system as its big differentiator against others working in a similar direction. Linux will supposedly allow service providers to write new applications directly to the platform and develop new services, says the company. But some analysts, like Westfall, don't see this as a big selling point. "No one is against open systems," he says. "It's fine if they are just going after the Linux aficionados, but it's not clear to me how much of a zinger it would be to carriers who are already using their own billing systems that aren't Linux- based." It's no surprise that Zuma has used Linux for the basis of its platform, considering its background. The company originally began as part of NBase-Xyplex, another MRV start-up that had been developing a Linux-based core router to compete with Cisco and Juniper Networks. Although NBase still exists as a company, its technology has been scattered throughout different MRV companies like Optical Access and Zuma, says Russell Hertzberg, vice president of marketing for Zuma. Although the company may play up its open programming environment and mix of service creation and fast switching, it still falls short in a few key areas. For example, in its first release, LightReef won't support Multi-protocol Label Switching (MPLS) and border gateway protocol (BGP-4) routing code. Other edge-switch routing companies like Riverstone, Extreme, Cisco, Foundry and Unisphere Networks already offer BGP-4 in their devices. And it is viewed in the industry as a necessary element for routing. "It's a concern," Westfall says. "Most of the edge-switch vendors out there are already implementing BGP-4. It makes it harder for Zuma to position itself against these other players if it doesn't have it too." MPLS has also become a necessary buzzword that needs to be included on a marketing data sheet. Cisco and CoSine have already made it a part of their products, and customers are starting to roll it out. Also other switch/router vendors like Riverstone and Extreme are rolling out or at least announcing MPLS plans. Hertzberg says these features are on the roadmap for future releases, but he wouldn't specify when they would be available. Another potential problem is that the LightReef products are not Network Equipment Building Systems (NEBS)-compliant, which could hurt the company's plans to target incumbent service providers. But Hertzberg argues that Zuma can still target large carriers even without being NEBS-compliant. In support, he says that the company is currently testing its product with NTT, the big Japanese telco. "Not every service provider deploys equipment in a central office," he says. "So you don't necessarily have to be NEBS- compliant. We aren't the first company to release a product that isn't compliant and then redo it. And we won't be the last either." Although analysts agree that NEBS is not necessary to sell into carrier networks, it doesn't hurt. "This is like the MPLS and BGP-4 issue," Westfall says. "I think it will at least cause them some sales and marketing headaches. I'm sure their competitors will use that against them." The LightReef products are expected to ship in the third quarter of 2001.>>> ___________