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


To: Steve Porter who wrote (17859)6/22/1998 12:57:00 AM
From: joe  Respond to of 45548
 
3Com NEWS:

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techweb.com


Target Your Apps
By Amy K. Larsen


In this unpredictable Webbed world, getting core business applications
to hit acceptable service level targets is no simple task.

Managing multiple protocols while the company migrates to IP is
tough enough. Trying to keep costs under control at the same time
really tests your skills.

So, if you expect to get your intranet and E-commerce projects moving
forward, it's more important than ever to define and demonstrate a
bottom line impact on the business. Fortunately, a new class of tools
that measures end-to-end IP applications has emerged to compile
availability statistics and clock application response times for highly
distributed networks.

But tools aren't enough. It's up to you to target which apps are
business-critical and, ultimately, to define acceptable service levels.

"In every industry-but especially in established industries like
utilities-cost containment is essential," says Bryan Bates, president of
Supportnet Consulting Inc., a Calgary, Alberta-based firm that
specializes in application management for utilities. "Business and the
IT groups have to communicate what their priorities and resource
limitations are."

Honeywell Space Systems in Phoenix, a unit of $8 billion Honeywell
Inc., takes this lesson seriously. The company's space technology
products division is bent on deploying Oracle across its intranet in a
way that's meaningful to the business.

The division's first step was recognizing that with users accessing
Oracle apps from distributed servers across the corporate WAN,
response times were almost guaranteed to be inconsistent. "We needed
a way to qualify and quantify performance," says Boyd Conner, a
network manager with the space technology products division.

Conner's goal was to identify slowdowns before they had a negative
impact on operations and to prove how IT is making it easier for
employees to make queries and send information. In the past,
Honeywell's support team relied on protocol analyzers to capture
traffic data, identifying the app by port number. Conner says that
approach delivered inconsistent margins of error, so he looked
elsewhere for a tool to fill the void.

He was looking for a way to measure overall response time, but he also
wanted to break out network latency and factor in information like
network volume to get an accurate performance profile. "There are
tools out there to tell how long a query takes at the server, but we
wanted to be able to see what the total turnaround time was," Conner
says.

Honeywell's search led to Ecoscope, a turnkey solution from
Compuware Corp. that compiles app performance and network
utilization statistics. Ecoscope uses a series of probelike devices that
listen in on the network, capturing traffic data as packets traverse the
network.

The application totals point-to-point response times and looks at the
impact the application has on network resources. The Compuware
product also automatically recognizes hundreds of apps-a key feature
Conner says helped Honeywell get it running quickly.

Conner says although his group has some "generic" service level
agreements in place, it just passed the infant stage of the Oracle project
and still has a way to go before it has a full-fledged service level
management program in place.

The space technology division's short-term goal is to define acceptable
performance levels and identify potential fixes.

The idea is to improve service levels continually, increasing
productivity and reducing costs-delivering results the business side can
understand.

Happy Together

Using tools to set metrics and define service levels is important. But
nothing moves forward unless corporate IT is working in step with the
business side.

Granting business groups ownership of technology gives them direct
responsibility for equipment and a better understanding of the resource
limitations IT faces. This alliance also gives IT personnel insight into
how they support business processes--and which ones take precedence.
In turn, that helps network managers set goals, devote technical
resources and guarantee recovery time for high-priority applications.

"Getting the business and IT sides talking has helped us set a better
expectation of performance because both sides understand the
limitations from the beginning," says Alan Nguyen, a senior network
management engineer for $5.6 billion 3Com, which is spearheading
service level contracts for all new transaction-based apps on its internal
network.

An increasing number of businesses are even starting to employ
application managers, technical personnel responsible for the
performance of a few corporate applications, according to Steve Foote,
vice president of research strategy at Hurwitz Consulting Group Inc.

Although these managers have roots in the IT organization, they receive
bonuses from individual business lines based on application
performance.

These managers apply technical knowledge to assure service quality.
That includes both pre-deployment planning and post-production
follow-up.

"For successful application service level management, you need to
cover both the micro- and the macromanagement, and not get caught in
between," Bates explains.

Macromanagement means anticipating how much of the enterprise
resources an application will consume and how well it will perform
once it's deployed.

Bates points out that to anticipate an application's resource
requirements and predict response time, application developers and
capacity planners need to test applications adequately prior to
production.

Bates uses Application Expert from Optimal Networks Inc. to estimate
response times based on different bandwidth allotments and other
resource variables.

Micromanaging applications amounts to keeping a tight handle on
availability and response times once they're in production. That also
includes recognizing falloffs in performance before they impact
business processes.

Of course, benchmarking performance is an inexact science. "It's
difficult to project what type of response time we should be getting
without having some kind of baseline to compare it against,"
Honeywell's Conner says.

Bates faces similar dilemmas. "By itself, all the modeling and
simulation in the world can't tell you exactly how an application is
going to perform on the production network or how it will impact
other resources," he says.

He cites the case of a utility client that tested an application in the
development phase and deemed its 14- to 20-second transaction
response time adequate for the business process it was running at the
time. Once the customer rolled out the application on the network,
response time rose to an unacceptable minute-and-a-half average.

After considerable analysis, Bates discovered that none of the necessary
drivers were resident on the user's NT workstation, so every time a
client machine initiated a request, the machine had to download the
drivers from a network server.

Today, most companies are focused on basic metrics. Only a few, such
as 3Com, actually are writing agreements.

"We draft an official document that all the managers from the business,
data, network and application sides sign off," Nguyen says. "Basically,
we don't roll out a new application now without doing one."

3Com is using VitalSuite, a set of performance tracking and analysis
products from VitalSigns Software Inc., to track and diagnose
response-time issues with critical business applications such as
PeopleSoft and SAP R/3.

Performance Results

3Com's network operations center monitors intranet application
performance at the networking company's headquarters in Santa Clara,
Calif., and its branch offices in Boston, Chicago, Singapore and
Europe.

Nguyen reports an overall positive result from the SLAs so
far-including a quicker resolution to long-term performance issues
such as insufficient bandwidth allocations. However, he does offer
some criticism of the nature of the available tools.

"There isn't any fully integrated product for planning and
management," he says.

As a result, his team stitches together data from the VitalSuite,
homegrown tools and products such as Make Systems Inc.'s Netmaker
XA for bandwidth impact analysis. Nguyen also says there are no real
commercial applications for automated problem resolution.

In the meantime, network managers will continue to cobble together
data from their apps to define acceptable service levels and the
resources required to achieve them.

The reality is that although tools are improving, there's no single
product out there that will do it all for you. If you really want to
demonstrate corporate IT's value to the business, be prepared to roll up
your sleeves-and target your apps.

SIDEBAR: Four Ways To Measure Performance

Network managers typically use four basic approaches to measure and
assess application performance: ghost tran-sactions, point-to-point
packet inspection, client-based agent measuring and application
response measurement. Here's a quick rundown of each:

- Ghost transactions. App developers can apply application simulation
products that use ghost transactions to mimic activity and record
response times. Products like Chisel from Network Tools Inc. emulate
actual transactions and are largely used for stress testing or capacity
planning.

- Point-to-point packet inspection. This approach, used in products
like Ecoscope, monitors packets as they travel between network points.
Although it's an easy way to track apps, there is a drawback:
Point-to-point packet inspection can miss the client side of the
equation.

- Client-based agent measuring. Applications like ETE Watch from
Candle Corp. and VitalSuite from VitalSigns Software Inc. equip client
workstations and PCs with software agents that clock response times.
The advantage to putting a timing device on the client side is seeing
performance from the user perspective-a metric IT managers can align
with business productivity. This approach also offers a more granular
view of query and transaction response times.

- Application response measurement. ARM is a set of application
program interfaces that reports performance data back to a management
application. By using the APIs, an application can leave a trail of its
activity and compliant software products can then determine the
specific path taken by each request to get a read on response time.
-Amy K. Larsen



To: Steve Porter who wrote (17859)6/22/1998 1:34:00 AM
From: joe  Respond to of 45548
 
3Com News:

Interesting comments by Eric B. on the Bay/Nortel
combination (see bottom of article):

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techweb.com

Nortel Snaps Up Bay -- Pact Gives Rise To New Big
Three

By John T. Mulqueen

Northern Telecom's plan to buy Bay Networks, announced last week,
propels the company into the ranks of a new Big Three of data
networking with Cisco and Lucent Technologies Inc.

Nortel's investors gave the $9 billion stock deal a resounding
thumbs-down, selling the stock in droves and knocking nearly $3
billion off Nortel's market value before the end of last week.

Bay's long-depressed shares rose $3.69 to $33.75. At the time the deal
was announced, Bay's stock was valued at $38.21 per share.

Though investors didn't like the move, securities and industry analysts
did. They said Bay can provide Nortel with a much-needed entree into
enterprise data networks to complement Nortel's strength in the
telecommunications switching and transmission market. It also can help
Nortel counter the burgeoning product lines of Cisco and Lucent.

Bay, which has struggled unsuccessfully to keep pace with Cisco, will
be reinforced by a strong parent, analysts said.

The merger sets the stage for the three giants to slug it out in the
emerging market for integrated data, voice and video networks based
on IP and packet switching.

Analysts also expect large equipment manufacturers to continue buying
smaller vendors for their technology or engineering talent.

"This will set the structure for the industry,'' said Rick Malone, a
principal at Vertical Systems Group, a market research and consulting
firm. "Now you will see the big three-Lucent, Nortel and Cisco-and
some of the international companies being fed by the smaller
companies. They will cherry-pick these smaller companies."

Malone and other analysts raised the possibility that Nortel's purchase
of Bay might not go through because of the sharp drop in Nortel's share
price last Monday from $58.69 to $52.50. Nortel's shares had been as
high as $69.25 in May and were at $66 early in June.

Terms of the deal call for Bay shareholders to receive 0.6 Nortel shares
for each Bay share; they would get 21 percent of Nortel if the deal
closes this summer as expected. The drop in Nortel's stock price
lowered the value of the deal to about $7 billion.

But Andy Schopick, a securities analyst at Nutmeg Securities, said
when "deals are done for strategic importance like this one is, my
experience is that they don't fall apart."

He noted that when 3Com bought U.S. Robotics in 1997, 3Com's share
price collapsed. The same thing happened when Ascend
Communications Inc. bought Cascade Communications Corp., and
when Wellfleet Communications Inc. and SynOptics Communications
Inc. merged to form Bay Networks in 1995. All those deals were
completed.

Nikos Theodosopoulos, an analyst at UBS Securities LLC, said the
price was not surprising and the deal not unexpected. Other analysts
said that Lucent, which resells Bay products, seemed to have passed on
the chance to buy Bay, but Theodosopoulos doubted that Lucent wants
to buy a manufac-turer of routers and shared media hubs. Lucent said it
will continue reselling Bay's products.

If the deal goes through, Nortel's Enterprise Data Networks business
will be integrated with Bay Networks' operations. John Roth, currently
president and CEO of Nortel, will remain chief executive officer. Dave
House, chairman, CEO and president of Bay Networks, will become
Nortel's president and hold a seat on Nortel's board of directors.

Despite the title, House apparently will focus primarily on Bay
Networks, with additional data networking sales and marketing
operations reporting to him. He also will help Roth with Nortel's IP
strategy.

When he was named chairman of Bay 18 months ago, House said he did
not take the job to sell Bay, which had stumbled badly in the areas of
product delivery, sales and marketing in 1995 and 1996.

Last week, House said that he had decided to sell Bay to Nortel because
public carriers were demanding IP products and Bay didn't have
established sales channels to sell to the carriers. Also, Bay's enterprise
customers now will be able to buy end-to-end solutions for voice,
video and data networks.

House also admitted that Bay has had a tough time competing against
Cisco. Sales of switches are hot but have not offset slowing demand for
hubs and routers.

House was able to improve the basic operations at Bay, but it wasn't
enough, observed Eric Benhamou, CEO of 3Com. "He fired all his best
shots," he said.

Benhamou said it had become clear over the past few months that voice
and data networks will converge, and asserted that Bay found itself
lacking. 3Com established a partnership with Siemens AG over a year
ago to address that market, so Benhamou claimed 3Com is about a year
ahead of Nortel/Bay in that respect.


For the nine months ended March 28, Bay reported revenue of $1.8
billion, up 16 percent from the year before, and a $55 million loss after
$161.4 million in acquisition expenses. Third quarter revenue rose only
7 percent to $547 million, and Bay lost $144 million.

Nortel's revenue for the first quarter, ended March 31, was up 5 percent
to $3.5 billion. Its data networking sales rose 29 percent to $196
million and orders rose 70 percent, Theodosopoulos said.



To: Steve Porter who wrote (17859)6/22/1998 1:41:00 AM
From: joe  Respond to of 45548
 
Networks in the everything, including the kitchen sink....

(see bottom of paragraph for highlight)

----------------------------------------------------------------
techweb.com

Coactive: bringing the other network into focus
By

First into the new market, Coactive Networks is set to press home its
early advantage. Company president David Gaw spoke with technology
news editor Cassimir Medford about advances in the control network.

VARBusiness: How much of an impact do control systems data have on
the data network?

Gaw: This is not a bandwidth hog. We're talking about hourly meter
readings. The IT professional's charter is to deliver information where
it's needed, and the control network-the intelligent building and the
energy systems-are sources of new information. So IT and the channel
have to be involved in how this information is delivered, and I think it
really fulfills part of their charter.

VB: You say that you already see interest from the VAR community. Is
that interest coming from any particular kind of VAR or systems
integrator?

Gaw: It's too early to say if it's a particular type. The companies that
have approached us have simply been forward-thinking groups that see
this as an opportunity to expand their businesses. People on the IT side
see it as a differentiator, but they also see it as a leading-edge
technology. But it is also being driven by some vertical markets more
than others. If you're an integrator trying to sell WAN retail branch
communications systems, and you're trying to convince a large retail
outlet that it makes sense to put in a wide area network, you could add
the control systems as another use of that network. If you can add more
to the network, it makes it more cost- effective and easier to make the
sale. This is an exciting market. LonWorks is already in a very strong
position in energy management, and home and commercial
applications.

VB: Why should VARs go with Coactive specifically?

Gaw: We've been in business for roughly five years. We started as a
systems integrator doing product development and application
integration in distributed, imbedded systems. In the past couple of
years, we've focused on connectivity as our specialty. It fit very well
with our core expertise. We've also developed a complete line of
products to address what we see happening in the market. We're the
first vendor to deliver products that connect control networks to IP,
such as a Java interface to a control network. We've taken a leadership
role.

VB: What's your marketing strategy among systems

integrators?

Gaw: We want to make people from IT aware of the existence of these
invisible networks. They are out there, and they are beginning to have
an impact on the shape of things to come. There are a lot of
opportunities for VARs and systems integrators to be a part of this
connectivity, particularly in large applications such as energy
management for retail branch communications. There is a very large
market out there. Our initial approach has been to train the control
systems integrators-allow them to extend their business and add value
by tying into the infrastructure. But we're starting to see interest now
from IT integrators.

VB: This sounds like some of the things Novell attempted to cover with
NEST...

Gaw: NEST was focused on home networking. That was an attempt to
converge computer networking and home networking on one media.
The thinking right now is that there will probably be a couple of
networks in your home. There will be an Ethernet data network that
companies such as 3Com are selling.
There will also be a network
installed that will include your security system. Tying those things
together will give you superior access to information in the home. The
requirements of those two networks are quite different in terms of
speed and wiring. But those grand visions have made it possible for us
to come in with a much more nitty-gritty approach. People are looking
for solid applications of these technologies. Once you have a permanent
WAN connection to your home, all you need is our device. Spending a
little bit of money to LonWorks- enable a few devices in your home
would save utilities a lot of money. The cost of putting in the right
infrastructure to make this happen has just gone way down because of
these parallel initiatives happening in the market