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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: paul_philp who wrote (51606)	6/1/2002 6:58:41 PM
From: gdichaz	Respond to of 54805

Paul: Hey, you sound like the Geoff Moore in the old days re telecom. Might I point out that "infrastructure" is not the key, the relationship of wireless data to the enterprise and the consumer is key and this is reinforced via the internet/intranet. All powered by the multiple applications BREW and/or Java for downloading everyting from position location to games, to pictures, to music, to .... Let's watch the BREW conference in the next few days. But then again, we won't know really until we see more as to how Korea and Japan go. The US will be a test - especially of Verizon with BREW and Sprint going it alone without - i.e. with Java. China will be worth watching as a swing case. Europe is irrelevant IMO. Curious again. Does anyone who is doing analysis and writing for RTW have a background in wireless or the mobile wireless/intrernet/intranet nexus? Why do you think that wireless is somehow so different if it is not likely to be part of the wireless/intranet nexus? Or do you see that as an absurdity? As for ARM, I defer to wiser heads here who are keeper of the keys of gorillaness. But I for one have voted yes with my money, adding gradually. See ARM as a gorilla, although no where near in as strong a position in its gorillaness as Qualcomm. <G> Best. Cha2

To: paul_philp who wrote (51606)	6/1/2002 10:24:49 PM
From: Mike Buckley	Read Replies (2) \| Respond to of 54805

Paul, Second, I have become convinced that infrastructure markets (telco, wireless) are different enough that the principles of Gorilla Gaming do not exactly apply. You weren't hanging out around here in our earliest days when many of us concluded that the intervention by governments in the adoption of wireless technology, (whether capitalists, socialistis or communists) are significant enough to realize that while most principles of Gorilla Gaming apply, there are certain other important distinctions that don't. However, it's probably fair to say that Gorilla Gaming doesn't apply to any two sectors in exactly the same way. It's our responsibility as investors to determine the variants and their associated risks and rewards. Cha2, Though there hasn't been any in-depth discussion of the wireles sector in the RTW newsletters, I hope you noticed that Qualcomm has always been one of the relatively few RTW companies. --Mike Buckley

To: paul_philp who wrote (51606)	6/2/2002 10:43:25 PM
From: Eric L	Read Replies (1) \| Respond to of 54805

Paul, << I have become convinced that infrastructure markets (telco, wireless) are different enough that the principles of Gorilla Gaming do not exactly apply. The economics and nature of advantages are very different. >> I'm wondering if you could expand on this, please? I myself do not see the "economics and nature of advantages" of "telco & wireless" and particularly mobile wireless telephony to be appreciably different from other technology markets that Moore describes in "The Gorilla Game" (or "Chasm" or "Tornado") as it relates to "the economics and nature of advantages". Not only don't I see it, mobile wireless could (should) be a model for illustrating and differentiating between a "proprietary open architecture" (Qualcomm cdmaone/cdma2000) and a committee based open architecture (GSM/3GSM-WCDMA). << I believe that enterprise computing will take on more and more of the characteristics of an infrastructure market over the next 10 years. >> Perhaps you have defined what you perceive to be the differences between an "infrastructure market" and "enterprise computing" on this thread before. If so, I did not pick up on it, and I apologize. Perhaps you could go over it for me. I have been kind of looking at this in reverse. I am of the opinion that "teleco & wireless" will increasingly take on characteristics of "enterprise computing" ... ... but I think I'm missing your definition of "infastructure". Best, - Eric -

To: paul_philp who wrote (51606)	7/9/2002 1:35:22 PM
From: Eric L	Respond to of 54805

re: ARM (ARMHY) Licenses Cryptographic Core from SafeNet (SFNT) << RTW reference. The June issue is quite exciting as it has detailed coverage of two of my favorite companies (NTAP and ARMHY) >> ARM deal here. SafeNet (fka Information Resource Engineering trading as IREG) of Baltimore is an interesting player in VPN & IS space. Only about $20 million in annual sales however and struggling to regain profitability. * Licensees of ARM cores will be able to integrate an ARM and SafeNet IP core into their own systems-on-chip for such applications as smart cards. * SafeNet ... also contracted with Texas Instruments to add security features to Open Multimedia Applications Platform-based mobile handsets and signed a deal with Samsung that lets the South Korean giant use SafeNet's IP across multiple product lines. >> ARM Makes Deal for Cryptographic Core Junko Yoshida EE Times July 8, 2002 (2:30 p.m. EST) ARM has licensed a security accelerator core from SafeNet Inc. (Baltimore, Md.), a security technology leader in the virtual private network (VPN) market. The move responds to concerns about security in consumer and business applications, from wireless to smart-card chips. The agreement will allow ARM to provide its technology partners with one of SafeNet's cryptographic acceleration cores. A high-performance version of the SafeNet core has already been certified for use in such high-security applications as ATM machines. ARM-Specific IP The SafeNet IP core licensed by ARM was specifically designed to work with ARM cores. Licensees of ARM cores will be able to integrate an ARM and SafeNet IP core into their own systems-on-chip for such applications as smart cards. "Smart cards are getting smarter," said Cees Jan Koomen, chairman of SafeNet Europe. "A lot of chip companies have been banging on our door," searching for ways to add security functions to their silicon. The partnership with ARM is the third large IP deal that the small security technology company has pulled off lately. It also contracted with Texas Instruments to add security features to Open Multimedia Applications Platform-based mobile handsets and signed a deal with Samsung that lets the South Korean giant use SafeNet's IP across multiple product lines. According to a recent report by SchlumbergerSema, a business unit of Paris-based smart-card vendor Schlumberger Ltd., the smart-card market expects a number of "new trends and technology shifts" over the next few years. In addition to a substantial increase in multiapplication cards and Java cards, SchlumbergerSema expects "smart-card-enabled public-key infrastructure [PKI] technology to start playing a growing role in the deployment of many 2.5- and third-generation networks, the rollout of national ID card programs, and the implementation of smart-card-based network access for enterprise IT systems." The report states that heightened security concerns, stemming from the events of Sept. 11, are driving "governments and businesses to explore new ways to protect the security of their IT networks and buildings without compromising the privacy of individuals. From a technological standpoint, such [public-sector ID] cards must support a sophisticated PKI to achieve the highest level of protection against counterfeiting. This necessitates powerful on-card cryptographic-processing capabilities." The security features of Safe-Net's EmbeddedIP-25 (EIP-25) modular multiplication and exponentiation accelerator core include a secure software environment, a quality true random- number generator, a PKI acceleration engine, a ciphering unit, a hashing unit, a secure memory, and overall security that ensures that all the modules are built in a way that makes them resistant to electromechanical probing. Although there are competitors that provide similar security IP, Koomen said, "we believe that ours is the first core that has the total feature set." Adding more rigorous security measures to a system-on-chip is one thing, but it's quite another to implement it so that it offers a combination of speed and minimum power consumption. Such features are critical, since smart-card chips are often used in battery-operated devices such as mobile handsets. SSL In 100 Milliseconds SafeNet's EIP-25 performs RSA operations within 100 milliseconds while consuming 5 milliamps of power. "We believe that getting an SSL [Secure Sockets Layer] transaction done in 100 ms is a sufficient response time acceptable to consumers," Koomen said. SafeNet engineers improved the low-power operation in its EIP-25 by designing a mechanism that turns off the core when it's not needed for calculations. "Five milliamps is a power budget for our IP . . . it doesn't mean that it needs that much all the time," Koomen said. SafeNet's IP core uses ARM's Amba AHB Bus as the bus structure. The EIP-25 functions as a "slave" to ARM's SecurCore microprocessor's bus master, according to SafeNet. SafeNet and ARM are "creating an innovative procedure," under which a third party will do "certifications on the IP level," said Koomen. That doesn't mean that the need for system-level certification will go away, but chip vendors will at least have the comfort of knowing that the IP they integrate into their applications are already certified, he said. << - Eric -