This month?s price-cutting fever has spread from PCs to networking, as Allied Telesyn slashed prices on its Ethernet switches by half.
The vendor has cut the list price for the 16-port AT 3716TR to #740 ? less than #50 per port.
Allied Telesyn, which does not yet provide a gigabit solution, dismissed threats from this quarter. The firm?s head of Northern Europe, Ernie Jones, said: ?Major vendors shipping gigabit solutions are shipping very small numbers.
?All of the nearly 2,000 resellers we have recruited to our programme since April are interested in the here and now world of Ethernet, and have little time for anything else.?
Jones claimed that Ethernet switching is today?s immediate performance and bandwidth builder. ?Market research firm Infonetics says the worldwide market for Ethernet switches will top $4 billion in 1997. If this is accurate, UK sales need to approach 16,000 units.?
But that is highly unlikely, Jones said, although price cuts will help. ?Our relationship with the channel suggests current run rates are under 500 switches a month ? three times less than market expectations.?
The channel can generate additional sales by using an Ethernet switch and unmanaged hub combination, he claimed.
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