3Com partners with Trapeze Networks to raise its profile in wireless enterprise

Rethink IT, Oct, 2004

* 3Com seems unable to escape the role of pig in the middle. Over the past two years, it has made repeated statements geared to raising its profile in the wireless enterprise, but it remains unconvincing--overshadowed by Cisco at the high end, not as cheap as Linksys and Netgear in the consumer and SMB spaces, hazy on key issues such as voice over IP. Now it has outlined another wireless Lan blueprint, centered on a development partnership with WLan switchmaker Trapeze Networks.

The deal, which involves joint development of future products as well as 3Com OEMing the current Trapeze line, is certainly good news for the switchmaker. Although one of the earliest and most aggressive in the market, Trapeze suffered a series of cutbacks last year and faces competition on many fronts, notably from fellow start-ups such as Airespace as well as the looming Cisco. The example of Airespace, which has important deals with NEC, Alcatel and others, shows that the best way for switchmakers to survive as independents will be through OEM arrangements with larger players, preferably with some help with R&D costs--as the 3Com-Trapeze alliance offers--and the possibility of future acquisition. 3Com brings Trapeze the credibility of a tie-up with a company that has a strong presence and profile in the medium-sized business area.

STRUGGLING FOR A FOCUS

But the deal is less exciting for 3Com watchers. The Lan company has been struggling to find its identity in recent years. In March 2003 it announced a major revamp of its strategy, selling its CommWorks carrier hardware unit and saying that it would focus on a smaller range of markets, with the wireless enterprise a key element. It aimed to use WLan equipment as one tool to hoist itself into the top rank of suppliers targeting the large enterprise by 2005.

Although 3Com is strong on price/performance it is, in perception and reality, a provider of point products to medium-sized companies, and does nor behave like an enterprise vendor. It relies heavily on an SME-focused channel and lacks corporate-targeted partnerships. Its wired and wireless products are good, but they do not fit together to provide a complete corporate system with the services and applications support to match.

It is seeking to address the latter with an integrated wired/wireless roadmap, but again, this seems too little too late when rivals such as Extreme have already talked up similar moves, and the whole sector is overshadowed by the fact that Cisco is finally delivering on its own integrated promises.

3Com said recently that its own approach will rest on switches, the Trapeze RingMaster software for network planning and management--widely seen as the key strength of the smaller company's range--and on seeking to converge management, security and deployment of wireless and wired networks to deliver applications such as voice over IP over mixed systems.

END-TO-END NETWORKS

Like Cisco, 3Com is working towards offering end-to-end networks, with security and management facilities built into every aspect of the system. However, it is doubtful whether it has the market clout to convince large companies to instal 3Com end-to-end (and indeed, it is hedging its bets by also promising integration of its switch-based WLans into multivendor wireless or wired networks). Cisco's huge installed base gives it the power to form the complex web of third party partnerships required really to deliver end-to-end for a large site--notably through its Cisco Compatible Extensions program, which certifies equipment to run with its systems. 3Com is talking vaguely about a string of partnerships, but so far it just has Trapeze, which though a clever switchmaker, dues not put its larger ally in any better position than rivals such as NEC--which also has good OEM deals, bur has enterprise experience and expertise in voice systems, critical for emerging VoIP.

3Com has entered the market for switched WLans fairly late and, though the deal with Trapeze will allow it to catch up rapidly, it is hard to see where its differentiation can come from in the enterprise. Once again, it risks being thrown back on price as its key differentiator. Given that switches have, to dare, been strongest in medium-sized businesses and departments, 3Com may do better to rein in its enterprise vision and focus on the SMB space where it has strong channels, and can compete effectively on functionality as well as cost, against companies coming up from the consumer world, such as Netgear.