3COM IGNITES NEXT BIG SHIFT IN NETWORKING MARKET
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 27, 1998--
Unprecedented Number of Breakthrough New Products for Corporate Enterprises Deliver
Unparalleled Performance, Network Control and Low Cost For Business Networks
As businesses face the prospects of deploying a new generation of power-hungry computer
applications, they are bracing themselves for the next big shift in networking: a leap from
traditional Ethernet to Gigabit Ethernet networks with a 100-fold performance boost. Sparking
this explosion in purchasing patterns, 3Com Corporation (NASDAQ:COMS) today introduced a
complete desktop computer-to-data center system that shatters the existing price/performance
barriers to 1000 megabit per second (Gigabit Ethernet) networks and the necessary intermediate
performance level -- 10/100 megabit per second (Mbps) gear.
The company will lead this charge with the industry's broadest array of 10/100/1000 Mbps
networking equipment. The new "hot products" include: a 3Com Fast EtherLink(R) 10/100 Mbps
network interface card (NIC), plus a broad range of 3Com SuperStack(R) II stackable products
including a 10/100 Mbps autosensing hub, 10/100 Mbps switches and 100/1000 Mbps switches.
Based on a new generation of 3Com's application specific integrated circuits (ASICs) and
advanced standards-based TranscendWare(TM) system and DynamicAccess(TM) NIC
software, the new products feature industry-leading performance, dramatically lower prices per
user, plus unparalleled levels of desktop and network management and control capabilities. Next
Big Step In 3Com's Strategy for Campus LANs
Following the recent introduction of 3Com CoreBuilder(TM) networking products for the center
(or core) of corporate networks, today's announcement is the second big step in 3Com's
strategy to outflank its competitors with a broader, more intelligent and more cost-effective
solution for corporate campus local area networks (LANs). The CoreBuilder products offer 10
times the performance and the network control of traditional, competing core networking
products -- or routers -- at a fraction of the cost. The new 3Com NIC and SuperStack II
products today complement the CoreBuilder products to provide a complete system, the only in
the industry with flexible 10/100 Mbps to Gigabit performance, new industry standard software
for control (IEEE 802.1p and Q) and complete remote network monitoring (RMON) software.
Packed with this superior level of intelligence, these products are designed to work together to
support new multi-media, video, push-technology, graphics and data-intensive business
applications at the highest performance possible, with the lowest overall cost of ownership.
For example, the new products start at the low price of $79 per 10/100 Mbps user connection,
deliver 17 percent higher performance desktop connectivity than competing 10/100 Mbps NICs,
and pack the industry's highest performing stackable Gigabit Ethernet switching (17.8 million
packets per second) performance -- up to 50% higher performance than competing systems at
half the price. "Our considerable distribution channel, prowess in low-cost/high-volume
manufacturing, 47 percent market share leadership in Ethernet NICs and 37 percent in Ethernet
hubs and switches, put 3Com in a perfect position to ride the next industry wave ahead of our
competitors," said Ron Sege, senior vice president of 3Com Enterprise Systems. "The demand is
mounting for high performance, and we've just opened the flood gates, making 10/100 Mbps an
irresistible choice and Gigabit Ethernet a realistic top-end migration path. This breakthrough
technology and pricing will ignite the market."
"3Com excels in providing customers with top quality products and flexible technology options --
all at leading low prices," said Tam Dell'Oro, founder of the Dell'Oro Group, a Portola Valley,
Calif.,-based research firm. "3Com's focus has consistently been to provide customers with the
best value and that makes 3Com a winner." Fueling a Market Ready to Explode Worldwide
sales-per-year for next-generation Ethernet switching solutions are expected to grow rapidly as
follows: 100 Mbps Ethernet hubs from $488 million in 1997 to $740 million in 1998; 100 Mbps
switches from $2.1 billion in 1997 to $4.8 billion in 1998; and 1000 Mbps Gigabit Ethernet
switches from $250 million in 1998 to $1.4 billion in 2000 (source: Dell'Oro Group).
Foreshadowing this dramatic shift in technology deployment, the market is already moving away
from traditional 10 Mbps NICs to purchasing to 10/100 NICs, with an increase in 100 Mbps
Ethernet NIC purchases from 27 percent in Q1 1997 to 43 percent in Q3 1997, while 10 Mbps
Ethernet NIC purchases have declined by almost 10 percent per quarter, falling from 62 to 46
percent in the same respective quarters (source: In-Stat).
"With 3Com shipping nearly 1.5 million NICs per month, we serve more desktop users and have
the biggest reach into this growing market than any other vendor," said Doug Spreng, executive
vice president of 3Com Interface Products. "Market data shows that customers are ready for
the next step in networking, and 3Com is the only vendor with the full solution and the best
price." To accelerate the deployment of complete 10/100/1000 systems, 3Com's new technology
offers: Gigabit switching performance for as low as $1,249 (U.S. list price) per connection (the
same price of most fiber-based Fast Ethernet switches today); the flexibility and ten-fold
performance improvement of 10/100 hubs over 10Mbps technology for only $79 (U.S. list price)
per user (less than twice the price of traditional 10 Mbps-only hubs); and new 10/100 Mbps NIC
technology that boosts desktop computer performance by 17 percent at no additional cost above
current 10/100 Mbps NIC prices (source: LANQuest Labs, Dec. 1997). Hot Products and
Industry-Leading Solutions Set a New Competitive Standard
Based on 3Com innovations in ASIC technology, Web-based management, advanced embedded
TranscendWare and DynamicAccess software, the new products far surpass even recent
volleys from major competitors and start-up companies, including Cisco, Bay Networks,
Extreme and Foundry. The new 3Com products announced today include:
--SuperStackII Dual Speed Hub 500 --Fast EtherLink XL 10/100 Network Interface Card
--SuperStackII Switch 1100 and Switch 3300 --SuperStackII Switch 3900 and 9300
For more technical details on these products, which are expected to start shipping in January
1998, see the following press releases also issued today: "3Com Drives Widespread Deployment
of 10/100 Networks," and "3Com Defies the Competition With New 10/100 Ethernet NIC."
About 3Com 3Com Corporation enables individuals and organizations worldwide to
communicate and share information and resources at anytime from anywhere. As one of the
world's preeminent suppliers of data, voice and video communications technology, 3Com has
delivered networking solutions to more than 100 million customers worldwide.
The company provides enterprises, network service providers and carriers, small businesses and
consumers with comprehensive, innovative information access products and system solutions for
building intelligent, reliable and high performance local and wide area networks. For further
information, visit 3Com's World Wide Web site at 3com.com, or the press site at
3com.com. Note to Editors: 3Com, EtherLink, and SuperStack are
registered trademarks and CoreBuilder, DynamicAccess and TranscendWare are trademarks
of 3Com Corporation. All other names are trademarks or registered trademarks of their
respective holders.
CONTACT:
3Com Public Relations
David Hayward, 978/264-1773
david_hayward@3com.com
OR
Cindy Cooper, 408/326-1962
cindy_cooper@3com.com
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