Convergence /

New Cabletron company hones message

By Jim Duffy
Network World Fusion, 02/25/00

The first order of business for the CEO of Cabletron's new enterprise spin-out is to clearly articulate the company's mission to current and prospective customers, and to convince them that relations will not change dramatically.

Cabletron is about to break into four separate companies focused on four different markets (NW, Feb. 14, page 1). One of those companies, Enterasys, will devote all of its time, energy and resources to the enterprise space, Cabletron's traditional stronghold.

"The first priority is to make sure we've done a good job communicating with the customers in more detail what the transformation is going to mean," says Henry Fiallo, CEO of Enterasys. He points out that the new company will have to explain "how we plan on servicing and supporting and providing solutions to our enterprise accounts, who have been strong loyal Cabletron customers for years and years."

Fiallo will stress to customers that the change is for the better, arguing that Enterasys will be able to focus exclusively on enterprise networking needs with the agility of a start-up, but with an established product line, sales channel and account representatives. It will also have all of the "big company" resources of Cabletron at its disposal.

"What we've got is a combination that you don't find too often: a company that's going to be able to think like a start-up, be nimble, really focus on the needs of the enterprise - but at the same time we don't have the disadvantages that a start-up has," Fiallo says. "We've got the infrastructure of a company that's been doing business for quite awhile. When we talk customers through that, they understand, and so the reaction has been very positive."

Indeed it has (Follow-up: Users give Cabletron split a cautious thumbs up). But at the same time, Fiallo acknowledges the challenges that lie ahead.

One of the major challenges is getting Cabletron employees focused on the Enterasys mission as quickly as possible so that relations with customers and channel partners are not disrupted in any way. Another is to reassure new and existing customers that even though the name is Enterasys, the products are battle-tested Cabletron.

"If we totally abandon the Cabletron name I would be very worried about that," Fiallo says. "So, we're not going to do that. We're going to be very thoughtful about how we brand, how we create the image. We believe this will give us an added boost by being able to come in, knowing that we've got the legacy of Cabletron, but be able to tell the new story of Enterasys and what it means for customers."

A big part of telling that new story is improved marketing. Though Cabletron has had a long reputation of building highly reliable products, the company's marketing has been anything but.

"Quite frankly, our sales force has not done a great job in telling our story to the customer," Fiallo says. "We're going to do a great job in telling this story because it's a great story for us to tell."

That story will include how Enterasys plans to grab a big piece of the IP convergence and VPN markets with its highly regarded SmartSwitch and SmartSwitch Router products. And how the medium- to large-sized enterprise market is wide open, having been overlooked by competitors hone in on very large enterprises or small/medium businesses.

The story will also stress that Cabletron's legacy is not a legacy to be perceived as an albatross. It's more of a heritage. This will help Enterasys address traditional Cabletron verticals, such as education; federal, state and local government; and the financial and biochemical industries, as well as new markets, Fiallo believes.

"We are very proud of the fact that we are a Cabletron subsidiary," Fiallo says. "We are proud of the fact that we have a very strong legacy with customers. Luckily, the parent company and the executive team understand that as well, so we're going to make sure that we're very thoughtful and methodical about this."