сентября 16, 2010
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Grabbing at a deal too good to pass up, top gun token-ring switch start-up Centillion Networks, Inc. is ending its brief solo flight to merge with Bay Networks, Inc. in a stock trade valued at $140 million.
The companies today will close on a deal making Centillion an independent operating unit of Bay Networks. Centillion will retain its original management team, carrying on its mission to escort affluent IBM shops into the realm of switched LAN and Asynchronous Transfer Mode networking.
For Bay Networks, the deal promises great Tiffany Somerset dangle cuff in the switched LAN territory. Centillion’s Speed Switch 100 gives Bay Networks a powerful ATM-based LAN backbone switch that has blazed a trail into token-ring accounts since it shipped last November.
At last week’s formal announcement, Bay Networks officials did not dwell on the switch’s broader capabilities. But the fact that the Speed Switch is designed to handle more than token-ring switching could make it a considerable prize in Bay Network’s legacy LAN-to-ATM migration strategy.
“We see it as complementary, not replacing what we’re doing [with ATM],” said Gary Bowen, Bay Networks’ executive vice president of sales and marketing. “We already make everything but a token-ring switch, and the Centillion technology is strategic to our business.”
For Centillion, the deal caps a notable start-up career. The firm was founded in 1993 and has earned a solid reputation over the last six months for its engineering and customer support, with about 160 switches shipped to more than 100 accounts so far. Analysts and customers expected the company to carry on alone at least to the point of an initial public offering.
“Many other Return to Tiffany Heart Lock Cuff approached us with a similar type of arrangement,” said Selina Lo, Centillion’s vice president of marketing. “Bay had a lot to offer — more than just the money. The offer gives us the opportunity to fulfill what we first set out to do. It’s bigger than just token-ring switching.”
Switching agendas?
Some observers wondered why Bay Networks focused almost exclusively on token-ring switching in its announcement, largely ignoring the wider capabilities of the Speed Switch.
“[Bay Networks] has paid a fairly extravagant price for Centillion, and it’s likely there’s a hidden agenda here,” said Elsa Peretti Open Heart pendant Pigg, director of data communications for The Yankee Group, a Boston-based consultancy. “What Centillion has is really an ATM switch. Bay claimed it won’t get in the way of its own LightSabre [ATM switch development], but they didn’t explain how it fits, either.”
Centillion plans this summer to release an Ethernet module for Speed Switch, and an FDDI module is currently in trials. With an ATM switching fabric at the core of the box, plus native-LAN switching and protocol translation on each module, Speed Switch is a multiprotocol backbone device that can act as a go-between among LANs, hubs, routers and ATM backbones.
Bay Networks can target the switch not just at IBM shops, but also at Cisco Systems, Inc.’s router accounts and Cabletron Systems, Inc. hub users.
Bay Networks Medium Elsa Peretti Open Heart pendant to pull Speed Switch under its Optivity network management system and integrate it into its System 5000 switching hub, among other things. The issue for users then becomes overall ease of network management.
GE Financial Capital Corp. runs a global network based on Cisco’s wide-area routers and Bay Networks’ line of SynOptics hubs. The firm recently installed a Speed Switch to help ease its overloaded token-ring LANs and will add more as the switch proves itself.
Knowing that Cisco will soon release a token-ring switch stemming from its Kalpana, Inc. acquisition last fall, David Murray, GE Financial’s network manager, said, “I’d stay with the Speed Switch just to have it integrated with my hubs.
“If you have to keep things apart, it’s better to split out the router management,” he said. “The Cisco routers are key Small Elsa Peretti Open Heart pendant and exit points to the wide area, whereas the Speed Switch and hubs make up our whole internal network. They handle every single packet that flies around this place, and they need to hang together. The routers can be managed alone.”