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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Javelin who wrote (4950)	3/21/1998 5:59:00 PM
From: B.K. Ohneis	Respond to of 6980

any gurus out there who know something about the implication of IP phones for BAY? So much news about the IP phone revolution recently makes me dizzy. Will that do any good or harm to BAY? Thanks.

To: Javelin who wrote (4950)	3/21/1998 10:38:00 PM
From: Jurgen	Read Replies (1) \| Respond to of 6980

Chip King Intel Wants To Rule Network Space Date: 3/23/98 (Source: IBD) Author: Michele Hostetler The world's largest chipmaker is speeding its push into computer networking this year with a spate of products, such as switches, and a new division targeting home users. But Intel Corp. faces competition from Silicon Valley neighbors Cisco Systems Inc., 3Com Corp. and Bay Networks Inc. Mark Christensen, who heads Intel's networking division, recently spoke with IBD about Intel's plans. IBD: How critical is networking to Intel? Christensen: Networking is absolutely critical to Intel's future. Today all PCs are being connected. It doesn't matter what segment of the marketplace they're in. We have this vision of one billion connected PCs in the next decade. So to get there, networking is the key technology, as is network management, as is client-server. Where we're unique in the industry is that we're trying to bring all those things together. We're not a networking-only company. We don't just focus on the network. We're focused on networking, manageability and the cost of ystem) ownership. IBD: The latest networking buzz is Layer 3 switching, a technology that combines the speed of switches with the power of routers. Does Layer 3 fit into Intel's plans? Christensen: Yes. Silicon is able to drive performance. What you've seen in Layer 3 switching is the ability to take the function that used to be on a router and move it into high- performance silicon (chips) and do the routing right within the switch. IBD: Will Layer 3 switches represent Intel's chance to increase its push into networking? Christensen: No, I think Layer 3 switching is just another new technology. I think there's one thing that we've all learned: Technologies over time commoditize. They flow more and more into hardware, into silicon. The silicon allows the products to . . . become lower cost and higher performance so that more customers can use the technology. Layer 3 is at the beginning of that curve. What you're going to see is that Layer 3 is a feature. It's a great feature. But it gets behind the concept that hardware is commoditizing and silicon is a requirement (to commoditize). We believe our core competencies of silicon, manufacturing and technology really play into this idea. IBD: Why did Intel form a home-networking division this year? Christensen: It's part of our whole vision of a connected PC. Today in the U.S., there are about 14 million homes that have more than one PC. Often a second PC is purchased, and the first one goes into the kids' room so they can do homework. What you're seeing here is more PCs are being deployed in the home and that there's an opportunity to connect those 14 million PCs. Within two years, it will be 30 million homes in the U.S. having more than one PC. We're looking at technology that can make (networks) super-easy to install and easy to use. We hide all of the complexity to the end user. They've got to be able to go down to their local retail store, buy the (networking) product, take it home, install it, and it works. No phone calls, no tech support - it's got to just work. IBD: When will products appear on retail shelves? Christensen: We're not announcing our timetable, just that we have formed the group and we have people working real hard at it. IBD: How will Intel compete against Cisco, 3Com and Bay, which all have or plan to have home-networking divisions? Christensen: I think the Intel brand has won. I think the Intel brand is one of the top 10 brands in the world to consumers. But what it comes down to is ales) channels, and it comes down to great products that are super-easy to use. I think those are enterprise companies competing on Intel's home turf. I think you're going to see us do quite well in this area. IBD: Does Intel have plans for the integration of voice, video and data networks? Christensen: I believe that in specific areas within the network, the integration of voice and data is going to happen. I'm very excited about the concept of . . . using the Internet to do voice communications.