By Peggy Watt
Network World, 01/04/99

6 Lucent

Founded: 1995
Top executive: Richard McGinn, chairman, president and CEO
Employees: 135,000
Headquarters: Murray Hill, N.J.
1998 revenue: $30 billion

Lucent's slogan may not be succinct, but it accurately describes its mission and its power: "We make the things that make communications work."

Lucent financial and stock news Network World Fusion McGinn biography McGinn: Hold on for the next net Network World, 10/21/98 Lucent on the prowl? Network World, 09/21/98

Most of the other companies on this list need Lucent's wares, which include digital signal processors, switching and transmission equipment, and wireless networks. Its biggest single customer is AT&T, which accounts for about 14% of Lucent's sales.

Equipment suppliers such as Lucent are benefiting from the construction of networks for personal communications services, cellular, high-speed digital transmission, broadband and all things Internet. Lucent is the leading U.S. manufacturer of telecommunications equipment, from telephones to transmission equipment and wireless networks.

A Zona Research report calls Lucent "a telephony incumbent with muscle," and says the company is poised to rule Internet telephony because it has the software and switches as well as the telephone equipment.

Lucent is financially solid, made even more so this year with the sale of its advanced technology systems and consumer operations.

7 Intel

Founded: 1968
Top executives: Andy Grove, chairman; Craig Barrett, president and CEO
Employees: 63,700
Headquarters: Santa Clara, Calif.
1998 revenue: $26.3 billion

"Intel inside."

This successful branding campaign raised awareness of people who didn't (and perhaps shouldn't) care what chips run their systems. And, indeed, Intel microprocessors are everywhere - they run in the majority of PCs out there, for example.

Intel financial and stock news Network World Fusion Intel CEO: Gov't. case wrong Network World, 6/9/98 Intel president eyes bigger network role for chip maker Network World, 03/09/98

Networking has long been part of Intel's mission; company representatives, for example, speak of one billion connected computers. Toward that end, the company has operated a network subsidiary for six years, marketing network cards, and hubs and switches, of the plain old and fast Ethernet types.

In October, Intel boosted its visibility in the network arena with a $185 million bid for remote access vendor Shiva. With this acquisition, Intel extends its network reach into the virtual private network and remote access product markets, as well as into the router and network management software niches.

Intel has also shown it knows that much of the future rests with the Web world. It recently reported that it conducts $1 billion worth of business-to- business commerce from its Web site each month.

This Power Player certainly doesn't keep all its chips in one basket.

8 IBM

Founded: 1911
Top executive: Louis Gerstner, chairman and CEO
Employees: 269,400
Headquarters: Armonk, N.Y.
Estimated 1998 revenue: $20.1 billion in third quarter

Many criticize IBM for being a lumbering giant, but the fact is the company has proven itself particularly adept at chasing new network opportunities.

IBM financial and stock news Network World Fusion Gerstner biography Gerstner goes for the long term Network World, 11/23/98 Here to stay or going away? Network World, 3/16/98 AT&T to buy IBM Network for $5 billion Network World, 12/08/98

You need only look as far as its e-business market strategy for evidence. The company has aggressively promoted itself, even through national prime-time TV spots, as a full-service electronic commerce provider, and has created a division to handle that line of business. It also has extended its Web server line with systems for e-commerce, as well as for Java application management.

Beyond the Internet, other noteworthy mentions include Tivoli, which continues making a name for itself in the enterprise management software arena; and Lotus, which expects to sell 12 million new Notes seats by year-end. And let's not forget IBM's massive systems integration business.

The company continues to consolidate around its core businesses, as is indicative in the recent sale of IBM Global Networks to AT&T for $5 billion. Even without this global network, IBM will still be all over the map.

9 Compaq

Founded: 1982
Top executive: Eckhard Pfeiffer, president and CEO
Employees: 77,500
Headquarters: Houston
Estimated 1998 revenue: $9 billion

Compaq sits on this list with enormous potential as a networking titan, capable of crafting a strategy and product selection spanning the enterprise from the glasshouse to the desktop.

Compaq financial and stock news Network World Fusion Pfeiffer biography Pfeiffer pitches Compaq as global enterprise player Network World, 4/30/98 Eckhard makes it look easy Network World, 4/20/98 Compaq snaps up Digital Network World, 1/26/98

Thanks in large part to the acquisitions of Digital and, to a lesser degree, Tandem, it can play against the mighties in the hub, switch, modem, remote access, storage and, of course, server markets. This year, it even added Gigabit Ethernet switches to its lineup.

And, Compaq's got an ace in the hole with its well-respected professional services arm, which includes an extensive Microsoft practice. Through its Microsoft ties, Compaq already has announced efforts to make Digital's Unix variant more compatible with Windows NT and to implement Microsoft's Component Object Model technology on OpenVMS. It's also already unveiled new Unix servers - the 64-bit AlphaServer Global Solutions series - that draw on Digital technology.

Just recently, Compaq began showing a savvier online business sense, too. It's stepping up its Web presence in an attempt to tame Dell Computer's wild success at the desktop.

10 Network Associates

Founded: 1989 (as McAfee Associates)
Top executives: William Larson, chairman and CEO; Leslie Denend, president
Employees: 1,600
Headquarters: Santa Clara, Calif.
Estimated 1998 revenue: $950 million

OK, Network Associates bought its way onto this list - but that doesn't make it any less powerful.

Network Associates to buy security vendor TIS Network World, 2/23/98 Network Associates buys Pretty Good Privacy Network World, 12/2/97 McAfee and Network General merge Network World, 10/14/97 Network Associates financial and stock news Network World Fusion

In fact, the former McAfee Associates (one of the best known of the companies that now make up Network Associates) is decidedly an interesting firm to watch. It has acquired more than a dozen companies in the past five years.

Those purchases opened the doors for McAfee, after merging with network administration tools vendor Network General in 1997 to become Network Associates, to become a leading supplier of enterprise network security and management software. Its product lineup includes sniffers, administration tools, help desk software and a broad selection of security products.

Network Associates positions itself, appropriately, as a complete supplier. Bill Larson, chairman and CEO, refers to the firm as an emerging enterprise systems management company, evolving from first being a desktop tools company and then a network tools firm.

The power of this one-stop shop is that the company is likely to have a solution on its shelves. And if it doesn't, Network Associates just may go out and buy another company.

Power at a glance

A guide to our power rankings:

Customer loyalty: Determined by the number of repeat and long-standing customers, and general user group population.

Financial stability: Based on financial reports, including earnings, debt, and profit and earnings ratios.

Executive leadership: Determined by the leadership's background, experience with the company and respect in the industry.

Market presence: Based on penetration, reputation, profile and ongoing marketing efforts.

Technology: Factors include maturity of products, reputation for reliability and stability, and setting and implementing standards.

Back to companies 1-5