This would seem to apply to CS as much as Coms. Convergence of data and voice in networks using IP.
Message 3269476
Mix in this and the company seems well positioned:
====================================================================== Backbone Switch Router Offers Industry's Best Functionality At The Lowest Price Per Port
As part of a comprehensive strategy to extend the capabilities of traditional network infrastructures, Cabletron Systems (NYSE:CS) today announced the SmartSwitch Router family, firmly establishing the company as a premier provider of high-performance, low-cost routing solutions for the next generation of networking. Switch routers represent a quantum leap forward in network performance, giving companies the chance to construct their networks in a new way. By combining wire-speed performance with full-function routing features, switch routers make it possible to simplify network designs without sacrificing performance, manageability or security. Cabletron's newly branded products, the SmartSwitch Router family, were acquired by the company through its recent purchase of switch-router visionary YAGO Systems, Inc. "This was a critical acquisition for Cabletron and finally provides the company with a solution to compete head-on with Cisco and others for enterprise cores as well as make a play for the service-provider market," said IDC analyst Esmirelda Silva.(1) "The YAGO technology opens important doors for Cabletron, allowing us to aggressively pursue a next-generation LAN backbone market that according to IDC, is valued at over $9.5 billion," said Don Reed, Cabletron's president and CEO. "As customers begin to upgrade their existing campus backbones, it is critical that they understand that Cabletron offers the industry's best solution for integrating switch routing into their enterprise networks." For the first time in several years, many customers are identifying compelling reasons to upgrade existing backbones to keep pace with the dramatic bandwidth and performance demands being placed on the network. While traditional routers are no match for the requirements being driven by bandwidth hungry applications such as the Internet, electronic commerce and the centralization of key network resources, SmartSwitch Routers increase performance by 100 times, at one-tenth the cost of traditional routers. Cabletron has outlined a multi-pronged strategy for quickly integrating the SmartSwitch Router with its award-winning SPECTRUM, SecureFast and SmartSwitch offerings:
- Pricing/Availability - With pricing beginning at $499 per port for Fast Ethernet, Cabletron offers better performance (15 - 30 million packets-per-second), capacity (250,000 route entries) and functionality (IPX and BGP protocol support) -- at the industry's lowest price per port. The eight slot SmartSwitch Router is available in the second quarter, with up to 14 Gigabit Ethernet ports and 56 10/100 ports. A 16 slot SmartSwitch Router, supporting up to 30 Gigabit Ethernet and 120 10/100 ports, is expected to begin shipping in the second half of 1998. - SecureFast - Using industry standards including 802.1Q for VLANs, 802.1P for policy and RMON/RMON2 for accounting, Cabletron is standardizing many SecureFast features. Standardization insures compatibility with existing SecureFast installations worldwide. The company plans to continue developing SecureFast value-added features. - SmartSwitch 6000/9000 Integration - Leveraging the value of comprehensive integration with Cabletron's SmartSwitch family, the company expects to integrate the YAGO technology in the second half of 1998. - WAN Interfaces - For high-speed, wide area network connectivity, a full line of WAN modules is expected in the second half of the year. Planned interfaces include PPP, Frame Relay, HSSI, ATM and Packet over SONET modules at both OC-3 and OC-12 line rates. - SPECTRUM Management - In conjunction with this announcement, Cabletron is also unveiling an integrated management module that exploits SPECTRUM's industry-leading enterprise management capabilities. The module provides customized management features, including extensive control and configuration capabilities. - Service and Support - Building on Cabletron's extensive experience in the enterprise market, Cabletron's global service and support resources and channel partners will insure smooth backbone design and operation. - Direct Sales and Partner Programs - Simultaneous with volume shipments of the products, Cabletron is expected to unveil a comprehensive incentive program targeted at direct customers, as well as key channel partners.
About Cabletron
Cabletron Systems, a recognized leader in providing high- performance computer networking products, has provided dependable network access and communications to millions of people throughout the world. With scaleable products designed for Fortune 1000 enterprise networks, service providers and small businesses, Cabletron provides simple, reliable and cost-effective business solutions for the information age.
Certain statements in this press release concerning YAGO and Cabletron constitute forward looking information. The actual results achieved by Cabletron following the acquisition could differ materially. Among the factors that could cause actual results to differ are delays in completing the development and introduction of products based upon YAGO's technology, competition from existing competitive products and new products expected to be introduced, the difficulty of integrating YAGO and Cabletron, including the difficulty of coordinating geographically separated organizations, and the distraction from day-to-day business resulting from the required dedication of management resources. For a more detailed discussion of the risks and uncertainties related to the Company's business, please refer to the Company's Annual Report on Form 10-K for fiscal 1997.
(1)"Cabletron Delivers on its Multilayer Switching Promise and Acquires YAGO Systems," Esmirelda Silva, International Data Corporation, January 1998. |