Bay Sells Routing Software To Other Vendors (http://www.techweb.c

Stefan Savage (savage@cs.washington.edu)
Thu, 25 Jun 1998 09:40:29 -0700

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Does Bay have an academic relations person?

- Stefan

<<Bay Sells Routing Software To Other Vendors.htm>>

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=0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= Bay Sells Routing Software To Other Vendors=0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A=
=0A= =0A= =0A= Bay Sells Routing Software To Other = Vendors
=0A= =0A= =0A= =0A= (06/24/98; 7:25 p.m. ET)
=0A= By Monua Janah,=0A= InformationWeek=0A=
=0A= =0A=

=0A= =0A= =0A= =0A= Bay Networks said it would start selling its routing software to other = vendors, a move aimed at making standards-based routers=0D easier to = manufacture and increasing competition for Cisco's=0D devices.

= "What we're trying to do is foster a renaissance in routing=0D = development," says Paul Callahan, vice president of business = development at=0D Bay. "We'll sell those components [of Bay's routing = software] that we=0D perceive to be no longer to our competitive = advantage, so that=0D everybody can benefit from using them. That way, = we foster more=0D innovation industrywide, and more products."

= Last week, Santa Clara, Calif.-based Bay (company=0D = profile) acquired Phase2 Networks, which supplies=0D routing = code components -- for example, implementations of standard=0D routing = protocols like Open Shortest Path First and Routing Information = Protocol -- to about 50 vendors, including=0D start-ups and some = larger vendors. Bay plans to add some=0D features of its BayRS routing = software to the Phase2 code.

Phase2's routing software varies in = price, from $30,000=0D for an individual module to $200,000 for a full = routing suite.

Michael Speyer, an analyst at the Yankee Group, = says Bay is betting=0D the availability of this software will = encourage more start-ups to=0D make routers. And even if these = products compete against Bay's=0D own routers, in the long run, "a = bigger installed base of=0D standards-based routing software might = undermine the strength of=0D the Cisco [Internetwork Operating=0D = System] in the marketplace." IOS is Cisco's routing software, chunks of = which Cisco has=0D licensed to third parties.

San Jose, = Calif.-based Cisco (company=0D = profile) has seen its margins in high-end routers shrink slightly, = and its=0D products are facing more competition from a new generation = of=0D route switches. But it still dominates the routing market, with = Bay a=0D distant second. Adds Speyer, "Nobody should underestimate the=0D = power of Cisco."=0A= =0A= =0A= 3D"TW"=0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A= =0A=

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