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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Joe S Pack who wrote (22903)	2/20/1999 1:23:00 AM
From: jach	Respond to of 77400

More competition from IBM that can potentially drive down margins drastically. The price/port looks like very aggresively priced. ------------------------------------------- 02/19/99 Data Communications By John Fontana IBM Adds Another Layer Of Blue To Ethernet Computer giant will unveil five new Ethernet workgroup switches that bring more fiber ports closer to corporate desktops. IBM's march toward credibility in the Ethernet switching space will advance five paces next week. The Armonk, N.Y.-based computer company will unveil five new Ethernet workgroup switches that bring more fiber ports closer to corporate desktops. The announcement is the latest of 18 Ethernet product releases IBM has made during the past 12 months as part of a campaign to build its own gear and establish itself in the market. The vendor previously relied solely on OEM agreements with Ethernet vendors. The new 8275 300 series and 200 series are fixed-configuration, Layer 2 switches with Fast Ethernet or Gigabit Ethernet uplinks. IBM said it plans to add Layer 3 and broader Gigabit Ethernet uplink support to the line in coming months. Both series support 802.1p and 802.1Q, RMON, SNMP, and Web-based management. The 300 series features the 318 model, with 16 ports of 100-megabit-per-second fiber and a 5-gigabit-per-second backplane. The 322, a mixed-media version, has 12 ports of 10/100-copper and eight ports of 100-Mbps fiber. The 326 has 24 ports of 10/100-copper. All three devices have two expansion slots and optional modules with one port of Gigabit Ethernet or two ports of Fast Ethernet. "This is definitely what we need on the edge to integrate with our 8265 ATM/Ethernet backbone switch," said Chris Blais, a network specialist at Telus Communications, an Alberta, Canada-based telephone company. "IBM is finally starting to catch on to fiber." The most interesting configuration may be the 322 with its fiber and copper ports on a single box. "We'll use these boxes for our bigger regional branches based on the port density and fiber," said Tim Colvin, assistant vice president of Internet and network manager at Citizen's Bank. The bank is in the process of rolling its WAN across four states and 150 offices. The port densities and speeds of the new 8275 boxes actually prompted Colvin to scrap deployment of IBM's 8275 113 Ethernet switch, a 12-port, 10-Mbps device. "The 113 was cost- effective, but too small. These new boxes are around the same price and give me 100-Mbps [throughput], more uplink options, and more ports," Colvin said. Those are the kinds of options some observers think will be the sweet spot for IBM. "We think this will be an attractive box for enterprises that need some fiber in a workgroup and have had to use a transceiver to accommodate that need," said Dan Del Vecchio, a partner with network-integration company Data Kinetics. But others who don't see a pressing need for fiber so close to the desktop have different ideas. "We haven't talked a lot about fiber, but we would have to evaluate speeds and costs before making a decision," said David Paul McGee, manager of network support at Dillards Department Stores. According to observers, part of IBM's fiber strategy is to support the company's e-business campaign. "They are presenting a two-part value proposition with their electronic commerce wares and their plumbing devices," said John Morency, an analyst with Renaissance Worldwide, a consultancy. "The message is, 'We can supply more of the solution than a Cisco, 3Com, or Nortel.' " To fill out the bottom of their plumbing line, IBM also is introducing the 8275 217 and 225. The two switches have 16 and 24 ports of 10-Mbps connectivity, respectively, and one Fast Ethernet port. Both have two expansion slots and optional modules for 10/100-copper or 100-Mbps fiber uplinks. Both the 200 and 300 series feature an illuminated control panel and menu buttons for configuration and status updates on the switch and its ports. IBM also said it would add policy-based networking features to the 8275 line later this year. The 8275 models are expected to ship next month. Pricing for the 200 series starts at $56 per port. The 326 starts at $119 per port, the 322 at $308 per port, and the 326 at $592 per port.