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To: Christopher White who wrote (13869)	2/10/1998 6:19:00 PM
From: Maverick	Respond to of 45548

INTC introduces GBE products at $1,400 per port, lowest in industry Intel Turns Up Network Juice By Scott Berinato February 10, 1998 11:07 AM PST PC Week Diving into the deep end of the networking business, Intel Corp. this month will introduce its first Gigabit Ethernet products. The Feb. 24 announcement in San Francisco will kick off a two-month product blitz. Among the products expected are a Gigabit Ethernet adapter for servers, a Gigabit module for the company's Express 510T switch, and new Fast Ethernet and Gigabit Ethernet routing switches. The new products are part of Intel's strategy to woo customers with low-cost networking wares that fill gaps between the workgroup and the enterprise backbone, company officials confirmed. The Santa Clara, Calif., company will lay the groundwork for the new products this week when it cuts the price of its Express 10/100 hubs to $83 per port for a 24-port device, down from $99, and to $116 for a 12-port version, down from $127. The Express 510T, a 24-port 10/100 switch, will drop switched Fast Ethernet to $154 per port from $199, officials said. A one-port Gigabit Ethernet module for the 510T, a switch that has two expansion slots, will debut at the Feb. 24 event. Pricing has not been set, but sources indicate it will come in at close to $1,400--competitive with 3Com Corp.'s recently announced SuperStack II 9300 Gigabit Ethernet switch. Intel also will introduce a fiber-based Gigabit adapter for servers, currently in beta testing, sources said. The network interface card is expected to be released next quarter, priced as low as $800, they said. Also due are Intel's newest Express 500-series stackable switches. An eight-port 10/100 switch with Layer 3 route-switching capabilities and two expansion slots will be priced at about $400 per port, similar to Extreme Networks Inc.'s new Summit3 switch.

To: Christopher White who wrote (13869)	2/10/1998 6:22:00 PM
From: Maverick	Respond to of 45548

INTC introduces GBE products, part II "Those prices would attract our attention," said John Ruhl, strategic planner at the Aberdeen Test Center, in Aberdeen, Md., which currently uses networking hardware from Cabletron Systems Inc. "As we add buildings and users to our network, we might add a vendor if the price is compelling." For the higher end, Intel will demonstrate an eight-port Express 500-series Gigabit Ethernet routing switch. The switch, which will officially debut in the second quarter, will be targeted at "entry-level backbones, or companies just setting up their first backbone," said Mark Christensen, group manager for Intel's Network Products Division in Hillsboro, Ore. Most existing Gigabit switch/routers, Christensen said, are targeted at larger enterprise backbones--a space in which Intel does not wish to compete. In the enterprise area, Intel will continue to leverage its OEM agreements with major networking vendors Cisco Systems Inc. and Bay Networks Inc. Intel, which previously has focused its networking business on lower-end products such as LAN adapters, will face some challenges in wooing network administrators who have long-standing relationships with more traditional networking vendors such as Cisco. "[Intel] will have a tough time of it," said Brendan Hennigan, an analyst at Forrester Research Inc., in Cambridge, Mass. "Right now, they can get in line behind the [four major networking vendors]." But as the world's leading chip maker, Intel's brand recognition and dominance in the desktop space will likely win over some networking converts. "I like using Intel switches because I know the Intel PCs will run well with the networking equipment," said Ha Nguyen, senior engineer at Marquette Medical Systems Inc., located in Torrance, Calif. "The price points are another reason I use their equipment. I think Intel can become a full-fledged networking company."

To: Christopher White who wrote (13869)	2/10/1998 6:24:00 PM
From: Maverick	Read Replies (2) \| Respond to of 45548

INTC introduces GBE, Part III Intel's powerful standing in the industry also would lend assurance to potential customers like the Aberdeen Test Center's Ruhl. "One advantage Intel has is you can establish a long-term relationship with them," he said. "I'm reasonably certain they're not going to be bought or go out of business. [With] some networking companies, you never know." Additional reporting by Carmen Nobel