Aberdeen Launches Optical Communications Practice; IT Market Strategy Firm Examines Optical Networking Systems for Carrier and Enterprise Markets.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--March 7, 2000

Aberdeen Group, an IT consulting and market strategy firm, today launched its new Optical Communications practice that examines the burgeoning optical networking industry. The practice will help equipment suppliers to identify key trends and strategically position themselves in the rapidly changing communications marketplace.

"Suppliers that focus only on the technology and deliver unusable solutions will not survive," says practice leader Andrew McCormick. "The market will belong to the suppliers who first deliver cost-effective products that solve the problems service providers face."

The Optical Communications practice covers both supply- and demand-side players. Supply-side vendors include the young, aggressive startup that is typically focused on delivering one or two key products, and the established telecom players that have a vested interest in the electric legacy network -- and largely control the customer base. Demand-side players include carriers and service providers -- both of which will experience a fundamental shift in their business models due to next-generation optical networking. "The immediate challenge for both supply- and demand-sides will be how to best integrate this technology into existing networks to meet end-user needs," says McCormick.

Aberdeen has identified and will follow four optical network industry segments: long-haul networks, metropolitan area networks (MANs), access networks, and switching and cross-connects. To be an effective player in just one segment requires a significant capital investment, and each of these segments has unique operational issues requiring vast resources to manage. However, optical networks will significantly reduce the operational burden and lower the capital requirements due to the flexibility, capacity, and scalability of optical elements. Ultimately, optical elements will automate network management by integrating the service and transport layers, allowing the network elements to talk to each other. The result will free resources, both human and economic, for carriers and service providers to become full-service channels for the customer.

Suppliers covered by the Optical Communications practice include Agilent, Alcatel, Alidian Networks, Amber Networks, Appian Communications, Astral Point, Atmosphere Networks, Chromatis, Ciena, Cisco Systems, Corvia/Brightlink Networks, Corvis, Cyras Systems, Ericsson, Finisar, Kestral Solutions, Lucent, Luminous Networks, LuxN, Mayan Networks, NEC (eLuminant), Nortel Networks, Optical Networks, Pirelli, Qeyton Systems, Quantum Bridge, Redback Networks, Siemens, Sycamore Networks, Tellabs, Tellium, Tenor Networks, Xros, and Yipes.

For more information about Aberdeen Group's Optical Communications practice, visit our Web site at www.aberdeen.com.

About Aberdeen

Founded in 1988, Aberdeen Group provides IT consulting and market strategy advice to the IT supplier community. Steeped in technology and armed with end-user field research, Aberdeen focuses on answering clients' critical business and technology questions in the context of the Internet economy and across the product life cycle. Headquartered in Boston, Massachusetts, Aberdeen Group has offices in Palo Alto, California, and Amsterdam, The Netherlands. Aberdeen is located on the Web at www.aberdeen.com.

(c)2000 Aberdeen Group, Inc.

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