The LAN market: segments at a crossroads

Computer Industry Report, August 31, 1995

The PC-server platform will emerge as the platform best suited to meet PC clients' demand for enhanced network services. As a result, the worldwide percentage of PC servers with TCP/IP will increase from 18.2% in 1994 to 66.1% in 1999. In their efforts to meet this demand, customers will leverage their desktop operating system expertise by using the related PC server operating system (such as OS/2 or Windows NTAS) and by shopping through the same distribution channels.

Issues

The administration and management of large networks has migrated from mainframes to network operating systems within PC LANs. In conjunction with this shift, these services are transitioning from single-vendor solutions to more distinct products available from multiple suppliers. TCP/IP-based products exemplify this trend in that today many users are piecing together their own solutions using several products from multiple vendors. Other key issues include:

* Administration -- Currently, the administration of TCP/IP networks is time consuming and difficult. For TCP/IP to continue to grow as a network standard, simpler TCP/IP configuration and management tools are required. The Dynamic Host Configuration Protocol (DHCP), which enables the dynamic allocation of IP addresses, should help in this regard.

* Security -- Distributed networks, like those based on TCP/IP, require new security controls. Thus far, fire-walls have addressed this concern, but ultimately customers will need solutions that ease their ability to maintain a secure a network.

* Windows 95-Windows 95, with its integrated 32-bit TCP/IP stack, has upped the ante for vendors in the TCP/IP market. Now more than ever vendors must provide higher-level applications if they want to be included in customers' purchasing plans.

* Universal client desktops -- Customers are demanding universal clients so that via one bundled package they can connect to multiple types of hosts/servers (IBM mainframe, AS/400, VAX, etc.). As a result, vendors like Attachmate and Wall Data are finding that they now compete with TCP/IP vendors like FTP Software and Net-Manage. Pricing will fall as single-purpose solutions get squeezed into lower-margin products while at the same time integrated products compete with higher-priced single-use products.

Recommendations

If TCP/IP is to become the base network standard, vendors must provide a full range of product services (stacks, applications, management tools, security) combined with a strong service and support organization. These services, which were traditionally built into the operating environment, are just emerging in distributed TCP/IP networks.

It is not enough for a TCP/IP vendor to offer narrow solutions such as PC Internet access. In order to be a major player, it must provide a portfolio of server-based offerings such as management, administration, accounting, and security in conjunction with client applications. These pieces should be available separately, but as a package they should give users coherent control of the network. To capitalize on the growing migration to TCP/IP, vendors must articulate a clear strategy to customers and leverage TCP/IP's broad appeal in corporations. In addition, they must provide comprehensive solutions that integrate diverse systems in the enterprise. Customers will base their mission-critical network on TCP/IP and thus will select vendors that are experienced and committed to providing high-level network management, administration, and configuration tools.