Extreme to cash in on M&A uncertainty

Vendor claims its single-minded focus on Ethernet networking could tempt partners from more thinly spread rivals

By Sam Trendall

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18 Jan 2010

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Gary Newbold
Newbold: We are the last pure Ethernet networking company and see that as a real advantage

Extreme Networks claims its undiluted focus on the Ethernet networking space could allow it to cash in on continued vendor consolidation in the market.

The latest blockbuster buy-out to reach fruition was Avaya's acquisition of fallen rival Nortel's enterprise wing, which closed a month ago. Gary Newbold, Extreme's regional director for the UK and Ireland, claimed the deal offered a chance to woo unsettled partners and customers.

"The Nortel (acquisition) offers an immediate opportunity as people are unsure of where it is going as a business," he said.

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Newbold added that Extreme's dedication to its core strengths was a key differentiator.

"We remain the last pure Ethernet networking company – we do not sell any other products and have not diversified into any other areas," he said. "We see that as a real advantage; it is something we focus on and are experts at. If you went to Cisco, but did not like its storage offering, there is potentially a conflict there."

EMEA field marketing director Jan Hof added: "Now Cisco has gone into the server market as well, it could make partners a bit uncomfortable. Market leaders are not known for innovation; we have a best of breed approach."

Newbold claimed Extreme could offer VARs considerably more attractive margins than Cisco.

"Our routes to market are more or less identical and each will claim they have the advantage in different (technological) areas," he said. "We are a safe bet in terms of history and the killer punch is that we deliver it at really good value."

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