Intel Corporation`s latest acquisition of Ipivot, an Internet commerce equipment specialist, is the latest in a line of acquisitions in its growing and healthy networking and communications division. Craig Brunsden, networking product manager at local distributor AXiZ, discusses the implications of this recent string of acquisitions and investments.
"The evolution toward a multi-dimensional model is key to Intel`s networking strategy," says Brunsden. "In the past, the `network` was viewed as essentially a collection of infrastructure devices. This notion is becoming outdated due to the rapid and dramatic ways in which business is changing."
Today`s networking paradigm is based on the notion of the "connected PC" - desktop PCs and servers vitally linked to the universal global network. Intel understands that this new paradigm requires striking a balance between the network devices, the client and server systems connected to the network, and the management solutions needed to control network and PC hardware.
Intel`s efforts in the networking arena focus on delivering industry standards-based technologies that support the transition to higher-bandwidth networking and reduce TCO. Intel`s strategy recognizes the need for solutions that address a number of key areas, including performance, control, productivity, speed, security, reliability, flexibility, lower costs and ease of use. Intel further recognises that solutions must take into account the "whole network" - even the PC architecture - not just the network infrastructure.
"Mark Christiansen, Vice President, Small Business and Networking Group General Manager, Network Products Division at Intel recently described Intel`s contribution to networking very neatly," says Brunsden. "He said: `Intel can do something that no one else can do by bringing the client, the server, the network, and the management infrastructure all together in a unified solution.`"
In less than three years, Intel has gone a long way to improving its networking offering. By making just-in-time acquisitions of the right nature, the company has developed its fledgling networking and communications products into best-of-breed. As part of its drive in this direction, Intel recently set up a US$200 million fund to invest in networking and communications companies.
"The first stated focus of the fund is to invest in companies developing solutions based on Intel`s new Internet Exchange (IX) Architecture," says Brunsden. IX Architecture provides an open, standards-based design that enables systems designers to add new network functionality quickly and cost-effectively.
Intel has not been shy to put its money where its mouth is. Other recent investments and acquisitions include:
. Shiva - this acquisition has enabled Intel to rapidly expand its networking product line to include integrated remote access solutions based on Shiva`s direct dial and virtual private networking (VPN) products for the medium-sized enterprise market segment.
. Trillium Digital Systems - a communications specialist which will optimise and port its communications software for telephony, the Internet, wireless and broadband networks to Intel`s recently announced network processor and the IX Architecture
. Ipivot - the company designs and manufactures Internet commerce equipment, and will supplement Intel`s network equipment expertise in switches, routers and servers. This is expected to increase application availability and improve response times.
. NetBoost - Intel has announced its intention to acquire this privately held company, which will provide Intel with a complementary set of silicon capabilities, systems modules and software tools that address the complexities of today`s networks.
As a result of these and other acquisitions, Intel has already come to market with new products. These include:
. Intel 6000 Series Switch, Intel Express 9510/9515 Routers, and the Intel Express 9520/9525 Routers. With the addition of these offerings, Intel broadened its network systems offering to provide medium-size enterprise customers with more flexible and manageable end-to-end networking solutions.
. A family of silicon components based on the Intel Internet Exchange (IX) Architecture, a new approach to designing networking and telecommunications equipment based on reprogrammable silicon and open interfaces.
. A network security-enabled family of products for adapters and LAN-On-Motherboard applications. These devices incorporate a new security chipset that will be used to help companies protect proprietary information by encrypting data as it travels over corporate networks. The chipset, which combines the Intel 82559C Fast Ethernet Controllers and the Intel 82594ED Network Encryption Co-Processor, will allow the PC or server to offload network security functions from the CPU.
"This all shows a major commitment to the development of networking standards," says Brunsden. "Intel has also been strongly involved in initiatives such as the one spearheaded by Intel, Compaq, Entrust, IBM and Microsoft to provide end-to-end security systems. Intel wants to be able to help create a trusted, secure, virtual network - and will continue to work towards this goal."
AXiZ
AXiZ is South Africa`s premier computer component and peripherals distribution company, with offices in Johannesburg, Durban, Cape Town and Pretoria and a staff complement exceeding 150 professionals. Founded in 1989, AXiZ has evolved from a supplier of memory modules and processors to be the leading distributor of branded end-to-end PC components, from motherboards, processors and PC cards to networking products, storage products, software, monitors and graphics cards. In addition, AXiZ provides services such as a PC and server configuration service, customer deliveries, and training and education.
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