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EZchip Semiconductor Ltd. Message Board

  • Netwerkers Netwerkers Aug 20, 1998 4:01 PM Flag

    Guardian vs. LanMaker...

    CrlChilders,

    You are right about the
    firewall and bandwidth market, however, you really should
    look at the low end switch market if you are
    interested in a commodity market. Two to three years ago
    switching was high margin business, but today the prices
    are approaching shared pricing.

    The 10/100
    switch market is purely a commodity business today.
    Companies like Intel and 3Com are loosing market share
    rapidly so they have started slashing prices. There is no
    real margin to be made in this market. What is
    LanOptics going to do? I guess the market is telling us...

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    • " The 10/100 switch market is purely a commodity
      business today. Companies like Intel and 3Com are loosing
      market share rapidly so they have started slashing
      prices. There is no real margin to be made in this
      market. What is LanOptics going to do? I guess the market
      is telling us... "

      This is not exactly
      true.... There is still a large margin (granted it is
      coming down) on switched ports (as opposed to group
      switches that have 8, 12 or 16 ports per switched
      segment).
      LanMaker does seem to have an edge in both
      price, performance and modularity/expandability (at
      least compared to an equivelant offering from Bay.) I
      still havent had the time to compare to some of Cisco,
      Xylan, 3-com and Intell's offerings...

      I do
      agree that there is a massive quantity of competition
      for the LanMaker line. AND HERE IS WHERE MARKETING
      WOULD PAY OFF!!! (the caps were aimed at the higher ups
      at LNOPF)

      - Still long

      • 1 Reply to Nodoze10
      • Nodoze,

        You claim that LanMaker has an
        edge in price, performance and
        modularity/expandability over other networking vendors offerings. That is
        very strange since the LanMaker's cost per port is
        significantly higher than any of the major and minor players.
        10/100 (the preferred port configuration) port density
        is very low as well as very expensive.

        Now if
        you compare the LanMaker Chassis to the Catalyst
        Chassis or the Xylan Chassis you will find very similar
        pricing per port; however, you do not get anywhere near
        the performance or flexibility. The LanMaker does not
        function at Layer 3 today (they have said something about
        a field upgradeable backbone module), nor does it
        offer ATM or Gigabit uplinks. The products from Cisco,
        Bay, 3Com and Xylan all support Layer 3, Gigabit,
        Trunking, VLANs Q&P, ATM and other options today. So to
        really get a comparable product you need to look at
        something from NBase which is 30% of the cost of the
        LanMaker or one of the standalone Bay, Cisco, 3Com 10/100
        switches.

        LanMaker is really a low end product with
        a high end price. Long time LanOptics customers
        will choose it because they like dealing with
        LanOptics. New customers would be foolish to purchase the
        product since they could get better performing products
        for the same cost or less.

        Marketing can help
        any product. Look at Cisco, they have always had a
        slightly retarded product in every catagory but their
        sales and marketing machine pull them through with the
        rest of the really excellent products. LanOptics lacks
        a pull through product not to mention the sales or
        marketing force to sell it.

 
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