Compaq takes Lan strategy to Extreme

Extreme's Summit 4 Lan Switch is the probable choice.

Compaq has revealed a key plank in its strategy to move into tomorrow's high-speed Lan market. The company will shortly announce its decision to market switch products manufactured by Extreme Networks, a Silicone Valley start-up.

"We are not hiding the fact that we are partnering with Extreme Networks, although it's not yet been publicly announced," said Ian Whiting, business manager for Compaq's communication products group.

"This is not an OEM deal. We have taken the silicone and the guts out of the Extreme boxes, reconfigured them and supplied our own software and enhancements," stated Whiting. However, he agreed the core technology in the units came from Extreme.

George Prodan, Extreme's vice president for marketing refused to disclose specific details of the deal prior to the official announcement. "Extreme has signed OEM deals with several large manufacturers. I can't give details, but we're very happy that such companies want our products," he commented.

Despite the lack of details, analysts believe Extreme's flagship product, the Summit 4 Lan Switch, will be one of the products Compaq has selected.

This unit can support up to six Gigabit Ethernet ports together with 16 Ethernet or Fast Ethernet ports.

Given the David and Goliath relationship between Extreme and Compaq, speculation has arisen that Extreme would be swallowed up by the hardware giant. But Prodan remains defiantly committed to Extreme's independence.

"Everyone asks about getting taken over, but we have grown the company to stand alone," he declared.

Whiting gave a more pragmatic assessment: "I am not making any predictions, but Compaq is a very acquisitive company. We aim to become one of the top five international networking organisations before the year 2000. To do this we will need to both grow organically and acquire."