Tut splits into two units

Electronic News, March 25, 1996

Pleasant Hill, Calif.--Tut Systems announced it has split into two business units to focus on high-speed communications markets. Using its Fast Copper Technology in combination with off-the-shelf discrete analog components, the Public Networks Business Unit and Enterprise Networks Business Unit plan to separately create customized transceiver modules for public and private network applications.

Part of the company's strategy rests on strategic alliances and partnerships. A few of these relationships are expected to bear fruit this year, the company said. AMD, for example, recently agreed to license Tut's technology for its 10Base-T Ethernet products (EN, Data Net, March 4).

Tut's Fast Copper Technology is said to enable broadband speeds over installed copper cable. That, coupled with the standard parts approach--rather than developing individual chips--is what Tut sees as its cost and time-to-market advantage.

"Our expertise is a copper technology that is very transferable, meaning it can be applied to Ethernet, ATM, internet access and video delivery, using the copper telephone wire that is already installed. What that means for the customer is the best end-to-end solution with a lower overall project cost," said Linda Seale, VP and GM of the Public Networks Business Unit.

Ms. Seale recently joined Tut from Ericsson Raynet, where she was VP of international operations. Ericsson Raynet develops and deploys fiber-optic systems for the access portion of the public network.

Her Public Networks Business Unit will target telecommunications, internet and entertainment programming service providers, designing products to compete with ISDN, ADSL/HDSL and cable (CATV) solutions. Currently in development is a 2-megabyte ATM module for set-top box systems. Ms. Seale said the group is working with a specific, large OEM customer and expects to deliver first products next quarter.

Meanwhile, the Enterprise Networks Business Unit will concentrate on high-bandwidth local area network (LAN) and campus connectivity products primarily targeting OEMs, licensees and end-users of Ethernet and ATM network interface cards (NICs), switches and hubs.

"One of the things we will be doing is looking at ways of cost reducing 155-megabit-per-second ATM, and providing a higher level of integration in 155Mbps," said Nick Berberi, VP of the Enterprise Networks Business Unit. Additionally, Tut is developing an Ethernet product for 2Q96 release, however, further details were not provided.

Mr. Berberi joined the company from VLSI Technology, where he was director of network product development. He sees Tut's off-the-shelf approach as part of a minor trend.

"We're seeing transformer manufacturers, for example, pulling more functions onto a board to make a transceiver. The main difference is, Tut's expertise is in communications. The transformer manufacturer's focus is on just a small aspect of the interface," Mr. Berberi said. Companies like Pulse and Valor have made some moves in that regard, he said.

Tut's claim is that its patented balun technology provides better noise performance using the same parts as competitors--65-80 decibels noise reduction, compared to a typical 43 dB, Ms. Seale pointed out.