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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Steven Messina,L.M.T. who wrote (23534)	3/27/1998 5:06:00 PM
From: David B. Higgs	Respond to of 97611

Here's a second article copied from CPQ's board at Yahoo along with ULR of "partner" by the name of Extremeworks. extremenetworks.com Compaq goes to Extreme for first Gigabit switch By Scott Berinato March 26, 1998 PC Week Online Compaq Computer Corp. next Monday will introduce its first Gigabit routing switch as part of its ongoing effort to make a mark in networking. The Houston-based company will OEM the Summit 4 switch from Extreme Networks Inc., of Cupertino, Calif., according to sources close to both companies. The pair will also co-develop a lower-density version of the switch, they said. Compaq, which has made no secret of its ambitions to become a Top Three networking company, will sell the switches as complements to its high-end servers that need high-bandwidth interconnections. "It's a good move for them as a first foray into this high-end networking space," said one source familiar with the new products. Industry observers said it's wise of Compaq to OEM the networking gear rather than develop it, but cautioned that the company cannot rely on its server customers to be the same group that buys the Gigabit routing switches. "They're getting volumes, not revenues, across their traditional product lines," said one analyst who requested anonymity. "So adding switches is a good idea [for getting a new revenue stream]. But if it were the case that the enterprise people who buy servers also buy networking equipment, IBM and [Hewlett-Packard Co.] would be the best networking companies in the world." A Compaq server configured with Extreme's Summit 4 switch will house 16 10/100M-bps ports as well as six Gigabit Ethernet ports. Also planned is a version configured with 16 fiber-based Fast Ethernet ports and six Gigabit Ethernet ports. Administrators can aggregate ports into one multiple-gigabit link. Compaq will also introduce a device with eight 10/100 ports and three Gigabit Ethernet ports, the sources said. Although pricing for Compaq's switch wasn't available, Extreme's switch ranges in price from $24,995 to $29,995. One user of routing switch technology isn't sure about buying networking gear from a company known for its servers. "We have departments that know what kind of server they need, and I listen to them," said Brian McNab, network administrator at The Miami Herald, in Miami. "If they came to me and said we should buy this switch along with the server, I would say we should not go with an off-brand switch. It's easier to mix and match brands on servers than it is on switches. There are support reasons for sticking with a networking company for switches, too." Compaq has previously partnered with Intel Corp. on network interface cards and workgroup switches. For the access side of networking, the company last year purchased Microcom Inc. for its concentrators. Both Compaq and Extreme officials declined to comment on unannounced products or relationships. Company Finder: Compaq Computer Corp. Hewlett-Packard Co. Intel Corp. Extreme Networks Inc. Select a Search Option Search for Sort by Relevance Date For magazine subscription savings, risk-free trial issues, newsletters, and more, click here! Copyright (c) 1998 ZDNet. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of ZDNet is prohibited. ZDNet and the ZDNet logo are trademarks of Ziff-Davis Publishing Company.

To: Steven Messina,L.M.T. who wrote (23534)	3/27/1998 6:53:00 PM
From: Trader J	Respond to of 97611

Being an IT guy, wish I could get excited about CPQ getting into the network infrastructure game. IMO, CPQ is making a mistake by trying to enter the market at this point. However, at least they are entering with the new Gig switches; at least they have a shot of some penetration with that introduction. But the market is owned by the big boys and CPQ needs to focus on what it does well. Heck some of the big boys like cabletron and even 3-com are having their difficulties. 3-Com is one of the big 3 too. Would seem to me that if they really wanted to be a player in this arena, they should have started with a purchase of a Bay or, possibly, a smaller player such as cabletron (arguable smaller) instead of DEC. They obviously thought that the service arena was a better spot to be currently.....and I agree. But who am I to say. I give them credit for at least trying it though, like I said, if they are going to do it, do it with the gig switches before they really start taking off. I don't see how they could get any significant share on any of the other lesser infrastructure devices. Luck to all. Good strength today. Monday will establish a new base at today's price, or prove that the old base still holds. Jeff. Investor by necessity, trader at heart.