![[Grove pic]](/gif/1229grove.gif)
More than Cisco, more than Cabletron, more than Bay Networks, the company
that scares 3Com the most is ... Intel.
Besides providing the microprocessors that drive most of the servers and desktops in the client/server world, Intel is pushing into networking in a big way with network interface cards, switches, server clustering and desktop management software. Hardware is Intel's game, and nobody knows more about maximizing manufacturing efficiency to pump out gear at low, low prices than Intel.
Witness the impact earlier this year on 3Com's stock when Intel slashed the price of Ethernet adapters, 3Com's bread and butter. Intel is going to put the squeeze on Cisco, Cabletron and Bay Networks as well by undercutting prices on Ethernet switches. Intel will force the Big Four to react to its pricing structure, which could wreak havoc on their profit margins, sales models and stock.
Andy Grove wrote the book about being paranoid in business. Paranoia is healthy, he claims. So is confidence. And Grove mixes equal parts paranoia and confidence.
The result is that Grove is spreading paranoia throughout the networking industry. That's power.
