Cabletron Systems, Inc. today will announce a sweeping new strategy aimed at shoring up customer loyalty, tightening the company's product focus and attracting new customers.
On the hardware side, the No. 4 network concern will hone in on the switching marketplace, and will not counter the "all things to all people" strategies of Cisco Systems, Inc., Bay Networks, Inc. and 3Com Corp.
On the software side, Cabletron is seeking to double its network management market from some 25% currently, to 50% - within nine months.
It hopes to do so by partnering with third-party software companies, as well as through licensing and other sales-related deals.
This week's news, released during a teleconference, also is a bit of a coming-out party of co-founder Craig Benson, who recently grabbed the reins as CEO.
In an exclusive and wide-ranging interview with Network World yesterday, Benson explained his turn away from end-to-end rhetoric. According to Benson, companies such as Cisco that claim to be end-to-end in fact have large gaps in their products lines, including such stalwarts as PBXs, servers, core bit of network software, and the like. "Nobody is end to end, let's get real." It also makes little sense for users to buy everything from one outfit. Not only are some of the products inferior, but the customer ends up getting locked into one vendor's strategy.
Benson also discussed his agreements and disagreements with former CEO Don Reed. According to Benson, just about all of Reed's strategies were sound - buying YAGO Systems, buying Digital's Network Business and its associated channel contacts and infrastructure. One difference Benson had, however, was with Reed's plan to keep the Digital business separate. Instead, look for the Digital stuff to be fully rolled into Cabletron over the next few months.
Benson also is seeking to rationalize the product line. For instance, he hopes to have a common switching engine that drives multiple products and form factors. The company also plans, for the first time in its history, to eliminate products. According to Benson, these are smaller products that "no one had ordered for 2 1/2 years."
RELATED LINKS
Cabletron CEO's bold new plan
Network World, 4/13/98
Cabletron boosts ATM switches
Network World, 4/13/98.
Whither Cabletron?
Our online forum on the company. Where do you see it heading?
Cabletron in chaos
Our report on Reed's departure. Network World, 4/6/98.
Reed's resignation
Benson has some decisions to make, writes Keeping Current columnist Fred McClimans.
Cabletron moves to strategic implementation
Cabletron's own page on the management changes. Includes Benson's statement and a Q&A.
Cabletron to buy switch maker NetVantage
Network World Fusion, 4/8/98.
Cabletron snaps up Yago Systems
Network World, 1/15/98.
Cabletron finally buys Digital networking division
Network World Fusion, 11/25/97.
Latest Cabletron financial and stock news
Apply for your free subscription to Network World. Click here. Or get Network World delivered in PDF each week.
Request a reprint or permission to use this article.
