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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Porter who wrote (17341)	6/12/1998 11:20:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

Steve, Enjoyed your opinions! >>I also see the possibility of pure bandiwdth providers popping up to fill the void that Cable and teh telcos seem to be leaving. And they deploy the fiber and then sell bandwidth to the cable and telcos. Imagine Cable and Phone on the same piece of wire. It will happen. Mark my words.<< By chance are you investing along these thoughts in any stocks like CIEN, TLAB, or Sprint, Qwest,....? By the way, how long is summer up there? joe

To: Steve Porter who wrote (17341)	6/14/1998 1:28:00 AM
From: joe	Read Replies (1) \| Respond to of 45548

To All: Channel Up To Speed On V.90 -- Distributors report strong sales of new modems techweb.com ---------------------------------------------------------------------- ---------------------------------------------------------------------- Channel Up To Speed On V.90 -- Distributors report strong sales of new modems By Hailey Lynne Mckeefry New York -- As the V.90 modem standard nears ratification, distributors are finding that the channel is well-equipped to handle the demands of resellers for the newest devices that provide download speeds of up to 56 Kbits per second and uploads at speeds of up to 33.6 Kbps. The final version of the standard, expected in September, will be the death knell for the incompatibility issues and confusion surrounding 56 Kbps modems that have plagued resellers and users alike. Distributors report that demand for new V.90 modems has been strong and consistent since the units became available. They agree that modems are readily available from those manufacturers who are already shipping product. Even with of the availability of new V.90 modems, however, distributors say they feel little concern about being left with older 56 Kbps products. Two older standards will be replaced by the new V.90. The K56flex standard was co-authored by Lucent Technologies Inc. and Rockwell International Corp., while the competing X2 standard was created by U.S. Robotics Inc. and 3Com Corp. The V.90 standard, which was developed by the International Telecommunication Union, an international standards organization, will supercede and replace both X2 and K56flex. Even if there are older modems left on distributor shelves, most of them, whether K56flex or X2, can be upgraded with software downloaded for free from the modem manufacturers' Web sites. "We have moved out most of the old products," said Jenny Ayala, senior director of purchasing at distributor Ingram Micro Inc., Santa Ana, Calif. "In fact, it has been easy to do because all the manufacturers offered free upgrades to their new products. Sales have been consistent and good." Distributors reported an initial spike in demand for the V.90 modems when unit shipments first became available. "I am seeing a strong push on V.90 sales for the manufacturers who have them available," said Tina Fisher, product manager at D&H Distributing Co. Inc., Harrisburg Pa. "The consensus is that people would rather buy a modem that incorporates V.90 than do the upgrade via the Web," she said. The first modem vendors to enter the market include Santa Clara, Calif.-based 3Com, which started shipping a V.90 and X2 model and Zoom Telephonics Inc., Boston, which introduced internal V.90/K56flex modems. Other manufacturers will quickly join the ranks with new products, and product shipments will reflect that. Moorpark, Calif.-based VisionQuest 2000 Inc., a market researcher, estimates the number of modems shipped each year likely will rise to 75 million by the year 2000, from 50 million in 1997. Currently, many manufacturers are offering dual-mode modems that combine support for V.90 and X2 or K56Flex, to answer the concerns of users until V.90 support is more readily available from Internet service providers. "About 95 percent of manufacturers have moved to V.90 standard," said Scott Knapp, a buyer at Ingram Micro. "The consumer markets will migrate to V.90 when the ISPs migrate to the new standard now and through the next six months." This means that resellers still need to be aware of which standard the Internet service provider that its customer will be using supports. Some manufacturers said they plan to ship modems that support the older standards until next fall when the standard is finalized, in hopes of avoiding adding to the number of product SKUs. ---------------------------------------------------------------------- ---------------------------------------------------------------------- At 75 million units/year, they can do damn well with 'low margin' products. If 3Com gets ownership of the modem market, with its 'expertise', it won't be "just low margin" profits.

To: Steve Porter who wrote (17341)	6/14/1998 1:50:00 AM
From: joe	Respond to of 45548

To All: Com Connects With Resellers -- Remote-Access Champion Sweeps All eight areas techweb.com ----------------------------------------------------------- ----------------------------------------------------------- 3Com Connects With Resellers -- Remote-Access Champion Sweeps All eight areas By Paul Korzeniowski Com Corp. staged a repeat performance as the winner of the remote-access server category of the Channel Champions survey this year. The Santa Clara, Calif., vendor swept all eight area rankings and emerged with an overall satisfaction score of 5.9, comfortably ahead of its two competitors in the survey. Resellers gave 3Com a very high score of 6.4 (out of 7) in the important product quality and reliability area. The company also scored a solid 6.0 in upgradability and compatibility. Cisco Systems Inc., San Jose, Calif., finished second in the survey with an overall score of 5.6. Ascend Communications Corp., Alameda, Calif., came in third with 5.4. 3Com actually improved upon its 1997 winning reseller satisfaction score of 5.7. This product category was added to the Channel Champions survey just last year. In achieving its victory, 3Com coupled a top product line with a comprehensive channel program, so few resellers had complaints. "The U.S. Robotics merger [with 3Com] caused a little bit of confusion with the company, but it is now on an even keel," said Don Grasse, chief executive officer at Nanco Inc., a Flossmoor, Ill., reseller. "3Com does everything a reseller desires: It keeps promises, offers many training programs and supports its products with technicians who have thorough product knowledge," Grasse said. Many resellers praised 3Com for its products' quality and reliability. "It's clear to me that 3Com thoroughly tests all of its products; we've seen very few instances where its devices fail," said Greg Bryan, IT manager for reseller Hilyard's Inc., Wilmington, Del. 3Com's products can be simpler to install than competitive offerings, a major selling point in the remote-access space, according to resellers. "Many of my customers are small and medium corporations that are not technically sophisticated," said Duane Merck, president of Duane C. Merck Business Systems Inc., a reseller in Bull Shoals, Ark. "So, the simpler a remote-access system is to install, the better." Yet, simplicity can be antithetical to this product category. Corporations have a wide range of remote network access options-lease lines, ISDN services, dial-up connections-and each operates at a number of different speeds. To ease setup chores, 3Com now includes Quick Wizard Applications, precanned routines that walk a reseller through the installation process. The company also has taken installation simplification a step further. Traditionally, resellers have had to manually configure each customer's remote-access system, a tedious and time-consuming chore. Michael Santiago, director of marketing for the carrier business unit in 3Com's Chicago office, said the vendor began bundling commonly chosen options into turnkey systems and shipping them to resellers. "We want our resellers to spend their time selling rather than configuring our products," he said. While 3Com fared phenomenally well in this year's survey, Cisco also garnered some high marks, placing second in six of the eight survey areas. "Cisco's products are easy to integrate, and the network setup is relatively easy and pretty straightforward," said James Jaibert, a senior technician at PC Services and Support Inc., a WAN equipment reseller in Caribou, Maine. Cisco also has concentrated on easing remote-access system installation. John Marler, president of Marfam Computer Services Inc., San Jose, noted that Cisco improved its Access servers and 2500 product line. "About a year ago, we asked Cisco to add a default TCP/IP address to its product, so when a new system is added to a network, central network technicians can find it. The latest release of Cisco's products includes that feature," Marler said. Product improvements from all vendors come quickly because competition is fierce in the remote-access market. The recent rise in telecommuting and continued user interest in Internet access have lured a large number of suppliers into this space. In addition to product improvements, the intense competition has lead to rapidly falling prices on remote-access hardware. 3Com's Santiago noted that a few years ago, a vendor could sell a high-speed modem for as much as $895. Now it would cost less than a hundred dollars. 3Com has been successful at keeping pace with these changes. The vendor gained a 5.9 rating in the price/performance area, compared with 5.6 for Ascend and 5.5 for Cisco. "Recently, I took a look at 3Com's remote-access products and was quite impressed with their pricing," Merck said. "The company has done a good job pricing them for small businesses: A four-user system from 3Com costs about $400; Cisco's products are close to $1,500." 3Com has remained price-competitive without sacrificing customer service and support, resellers said. Nanco's Grasse said 3Com's remote-access products carry multiple-year warranties and lifetime guarantees on certain parts. Such features make them attractive to corporate customers, he said. 3Com also seemed to be in tune with reseller support requirements. The company's rating of 6.2 topped the product availability area. 3Com also came out ahead in vendor return policies with a score of 5.7. Some resellers said 3Com's return policies are a strong point for the company. "Once we called 3Com with a defective system, and the next day Federal Express dropped off a new system," Marler said. "I was pleasantly surprised." 3Com also took top honors in the technical support area with a 5.9 rating. "Whenever I call with a problem, 3Com usually solves it within 12 hours-24 hours, if the problem is quite difficult," Grasse said. 3Com is taking a proactive approach to technical support, officials said. Last year, the company focused on increasing the number of resellers that have completed its authorization programs, and even cut the price for certain courses to zero. While resellers welcome additional technical training, especially when it is free, the vendor also benefited from the initiative. "Since we offered resellers more training, the number of calls coming into our technical support center has dropped," 3Com's Santiago said. Even though 3Com topped this year's survey, Santiago said the company plans to improve its relationship with resellers. The first item will be to alter the marketing focus for its remote-access wares. "Corporations are not really interested in individual product features. They want integrated solutions," Santiago said. So, the company is teaming with other vendors to deliver such packages. 3Com will hold a series of sales and technical support sessions so resellers can learn how to couple 3Com remote-access hardware with Winframe, a remote-communications package from Citrix Systems Inc., Fort Lauderdale, Fla., and deliver complete remote-access systems. Working with other suppliers to train resellers could require additional corporate resources, but 3Com is willing to make such investments. "This year, we will spend more training resellers than on product advertising," Santiago said. In an industry where intense competition makes it difficult for suppliers to build brand loyalty, that is a bold strategy. If its programs are successful, 3Com could maintain its current dominance in the remote-access category next year. ----------------------------------------------------------- -----------------------------------------------------------

To: Steve Porter who wrote (17341)	6/14/1998 2:22:00 AM
From: joe	Read Replies (2) \| Respond to of 45548

To All: 3Com First In Network Hardware -- Satisfaction Scores Tight In All Survey Areas techweb.com ----------------------------------------------------------------- ----------------------------------------------------------------- 3Com First In Network Hardware -- Satisfaction Scores Tight In All Survey Areas By Lynn Haber Com Corp. edged out four competitors to take the lead in the highly competitive Channel Champions network hardware category for the second year in a row. With an overall reseller satisfaction rating of 5.8, the Santa Clara, Calif.-based vendor barely overtook second-place finisher Kingston Technology Corp., which, in its first appearance in the poll, received an overall satisfaction score of 5.7. Close behind 3Com and Kingston, Fountain Valley, Calif., were three vendors tied for third place: Intel Corp., Santa Clara; Cisco Systems Inc., San Jose, Calif.; and Bay Networks Inc., Santa Clara. All received an overall satisfaction score of 5.6 out of a possible 7. Resellers gave 3Com the top rating in four survey areas: product quality and reliability; upgradability and compatibility; product availability; and return policies. However, it won only one of these four areas outright. (Resellers gave 3Com a 6.2 in product availability, a full two-tenths of one percentage point higher than second-place Kingston.) Underscoring the intensity of the competition in this product category, 3Com tied or won in four areas, Kingston tied or won in four areas, Cisco tied or won in two, and Intel tied in one. Intel, which tied with 3Com in this Channel Champions product category two years ago and finished a close second last year, lost this year by a wider margin than in 1997, slipping in price/performance and co-op marketing areas. Bay Networks, meanwhile, failed to win any of the eight areas included in the reseller survey. Although the company received its highest scores ever in two areas-a 5.8 in both product availability and upgradability and compatibility-it lost ground in product quality and reliability, where resellers rated it fourth out of five companies. Though not on par with Kingston, Cisco also fared well in its first Channel Champions outing, tying 3Com in the area of product quality and reliability with a score of 6.3 and even beating every contender in technical support with a rating of 5.8. The secret to 3Com's success in the poll was that it did not have to blow away its competition to win because it earned solid second-place scores in all the survey areas in which it did not place first. Some resellers were not surprised 3Com came out on top in areas such as product reliability and availability. "The NICs are always available, I've never had to call technical support, and I've never had to return any," said Prit Gill, sales manager at MegaMicro Devices Inc., Milpitas, Calif., who is a big user of 3Com NICs. Jerry Dickson, owner of Jerry's Computer Solutions, a Lubbock, Texas-based reseller that installs a lot of 3Com 10/100-Mbps hubs, said: "The 3Com hubs are a little expensive, but their overall component quality can't be beat." Raju Padole, account executive at En Pointe Technologies Inc., Los Angeles, agreed that in terms of product quality and reliability, 3Com is a name he and his customers can rely on. Padole offered one reason for 3Com's first-place score in upgradability and compatibility. "3Com now offers several product lines with a nice growth path. They used to offer that kind of expandability in only one product line," he said. "The company's product pricing is also great," Padole added. He pointed out that 3Com's Office Connect solutions for small and midsize businesses give his customers the performance they need at a good price. "If users want more functionality, they can buy optional modules when they need to. I'd rather sell a customer what they need versus over-engineering a solution," he said. Padole also said he has seen considerable change at 3Com over the past six to eight months in the areas of product strategies and channel programs. "3Com streamlined its router line of products, and offered more tools and rebates and more flexible upgrades," he said. Regarding 3Com's tie with Cisco for top score in product quality and reliability, Padole said: "When it comes to routers, I think that 3Com knows Cisco is the one to beat." While 3Com did not win in either vendor response time or co-op marketing programs, some resellers noticed improvements in the vendor's efforts in these areas. Gill said the confusion that arose around the time of the merger between 3Com and U.S. Robotics Inc. has waned, and getting in touch with someone at 3Com has become much easier. Padole agreed. "There was a time when the reps were invisible and seemed indifferent about returning calls," he said. But over the past six months, he has noticed a change. "Now, 3Com is a more willing partner to help work out strategies on both small and large accounts," he said. Dana Christensen, business development manager of SuperStack products at 3Com, said resellers know what counts the most: product reliability. "We have always invested and continue to invest dollars into research and development as well as leading-edge manufacturing capabilities," Christensen said. More extensive product integration also enables 3Com to reduce product production costs as well as product points of failure, she added. **************************************** Key to 3Com's business strategy is the vendor's desire to be viewed as a true provider of end-to-end solutions-from the NICs to the hubs and switches at the edge of the network-to-core products, she said. ************************************** "In all of these product categories, our intent is to be an industry leader without sacrificing product quality or reliability," Christensen said. 3Com backs up its commitment to quality with a limited lifetime warranty on many of its products, she added. 3Com also recognizes the importance of preserving customers' investments in network technologies, and therefore makes product compatibility and upgradability a core feature in its various hardware lines, Christensen said. Providing tools and resources, as well as ongoing training and marketing programs, goes hand-in-hand with 3Com's engineering efforts, she said. According to Tiffany Finocchio, manager of channel development at 3Com, the company continues to bolster its Network Partners program for resellers. Finocchio said that over the past year the company realized it has not invested the time it should focusing on its small and midsize accounts. "We're looking at that now and are working on how to support all our channel partners," she said. In the meantime, 3Com has significantly beefed up lead generation through a faster access program, Finocchio said. Christensen pointed out that 3Com's newest line of stackable products targets price-sensitive small to midsize businesses. Not only do the new products offer high quality, but they are easy to install, she said. "We're extending our expertise to a new set of customers," she said. 3Com's work on all fronts-in products, engineering, manufacturing, pricing, support and marketing-has paid off in the results of this year's satisfaction survey. The vendor's strategy to forge partnerships with resellers has led to success with the channel once again. However, there are no shoe-ins in this Channel Champions product category. The question is: Can 3Com maintain or lengthen its slim lead? ----------------------------------------------------------------- ----------------------------------------------------------------- If these articles are correct, then it appears that 3Com "owns the channel"**. Does any body have any better way of getting hundreds of thousands of people working for a company?