Subject: [NEXTEL-1] Cisco to share Wi-Fi technology with others

From: Marcel <[email-masked]>
Date: Mon, 24 Feb 2003 18:44:05 -0500

Cisco to share Wi-Fi technology with others

Cisco Systems today said it plans to share its wireless technology with other companies,
at no cost, in a move to
help spread wireless networking into the enterprise. Chipmakers such as Intel and Texas
Instruments said
they plan to use Cisco's technology to develop new chips. Also, computer makers such as
IBM and
Hewlett-Packard said they would come out later this year with new laptops that use the
improved chips. Other
companies participating in the program include Agere Systems, Atmel, Intersil, and
Atheros. Cisco wants to help
spread wireless networking technology so it can sell more of its networking equipment,
including routers and
switches. Since the tech meltdown at the end of 2000, Cisco has struggled with declining
hardware sales.

Cisco lets chipmakers in on Wi-Fi tech

By Sandeep Junnarkar
Staff Writer, CNET News.com
February 24, 2003, 1:52 PM PT

update Cisco Systems announced Monday that it will share key technology with
chipmakers and computer companies to help drive the use of wireless networks within
corporations.

The network equipment maker said it would license software designed to improve the
security
and range of wireless networks that use Wi-Fi technology--the reigning standard among
wireless technologies that has grown in popularity among consumers in the past year.
Corporations, however, have been slow to adopt the new technology out of security
concerns.

Cisco hopes that by working closely with the leading semiconductor companies and computer
makers, it can assuage such concerns.

It is collaborating with chipmakers that together represent more than 90 percent of the
client
reference design market, including Intel, Texas Instruments and Atheros. Computer makers
such as IBM and Hewlett-Packard said they would come out later this year with new laptops
that use the improved chips. Other companies participating in the program include Agere
Systems, Atmel, Intersil and Marvell.

By participating in the "Cisco Compatible" extension program, the companies aim to speed
the
introduction of innovations to their corporate customers. The program concentrates on
improving security, defenses against rogue access and voice and management capabilities of

wireless networks.

Right now, the group is working on version 2.0 of its jointly developed software. The
upgrade
will be available to companies in 60 to 90 days and will be available to customers in the
second
quarter, said Bill Rossi, vice president and general manager of Cisco's Wireless
Networking
Business Unit.

"We want to get (innovations) to market without the delays that occur in the IEEE," said
Rossi,
referring to the Institute of Electrical and Electronics Engineers, an industry body that
often
sets standards.

"This is still an immature market...We will bring (innovations) to the standard bodies for

consideration, once they are proven to work, so they can be added to standards later,"
Rossi
said, adding that he expects the group to disband once the technology moves beyond its
infancy.

Meanwhile, the group is continuing to look for other silicon makers to work with and will
announce four or five other partners as well as new products soon, he said.

All the gear and devices created through the partnership will be compatible with Cisco
network
equipment, a company representative said. Once a new product's compatibility with Cisco's
networking gear has been confirmed, Cisco will grant it the right to bear a "Cisco
Compatible"
logo--mimicking the successful "Intel Inside" branding campaign.

A third party, Keylabs, will test the interoperability of Cisco gear with chips from its
partners,
Rossi said.

SG Cowen Securities analyst Christin Armacost sees potential in Cisco's program.

"We believe (Cisco's) somewhat unusual move will help stimulate the corporate WLAN
(wireless local area network) market, which has been slow to adopt the technology due to
lack
of standards and security issues," Armacost said in a report Monday.

The volume of Wi-Fi products adopted by the corporate market is expected to have risen 65
percent to 11.6 million units in 2002, compared with 2001, according to a recent report by

market researcher In-Stat/MDR. The security of wireless networks remains the most debated
topic within business circles, the report noted.

News.com's Richard Shim contributed to this report.

http://news.com.com/2100-1033-985672.html
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