Dell'Oro Group Reports High Interest in Gigabit Ethernet; First Comprehensive Survey of Expectations and Needs Concerning Gigabit Ethernet Reveals Most Would Evaluate This High-Speed Networking Option.

ATLANTA--(BUSINESS WIRE)--NetWorld+Interop--Sept. 17, 1996-- The Dell'Oro Group announced today the results of a recent survey probing respondents' requirements and perceptions of Gigabit Ethernet. The vast majority of those surveyed (over 80 percent of the end users and almost 90 percent of the network integrators) indicated that they would commit resources to evaluate for purchase, or to resell, Gigabit Ethernet products.

The impetus for this study began with the Gigabit Ethernet Alliance, a multi-vendor effort committed to providing customers with open, cost-effective and interoperable Gigabit Ethernet solutions. The Alliance and the Dell'Oro Group cooperated on the initial scope and methodology of the survey, which was then expanded upon by the Dell'Oro Group to make this the first comprehensive study to date of user perceptions of and requirements for Gigabit Ethernet.

"The results of this survey strongly indicated that users would consider Gigabit Ethernet technology at the server, and second layer of backbone," said Tam Dell'Oro, Founder of the Dell'Oro Group. "User demand for switches was five times greater than shared hubs at the server level. For backbone applications, demand for switches outpaced router interfaces more than two-to-one.

More than 40 network equipment end users and 90 network integrators participated in this study via telephone interviews. The end users were early adopters and users of sophisticated networks. The systems integrators represented a cross-section of large and small companies that work with a broad spectrum of end users. The survey revealed the following perceptions, issues, and requirements:

-- Although Gigabit Ethernet is expected to compete with LAN ATM, roughly 30 percent of the end users indicated that ATM's deterministic qualities and integration with the WAN infrastructure would influence their LAN backbone purchase decision. Many of the end users saw Gigabit Ethernet and LAN ATM coexisting in complementary applications.

-- Imaging, video editing and multimedia were the most frequently mentioned applications that were perceived to drive high-speed technology.

-- Many users were not aware that Gigabit Ethernet was being developed to run over copper wiring.

Survey results and market sizing will be presented at the Interop show in Atlanta, and a report will be available from the Dell'Oro Group starting October 21, 1996. Call 415/233-2300 for more information, or visit our Web site at http://www.delloro.com.

The Dell'Oro Group is a research and consulting firm that specializes in business planning and strategic competitive analysis in the networking industry.

CONTACT: Dell'Oro Group

415/233-2300