Samsung to Aim WiMax at SMB Networking

Wed, May 23, 2007 — IDG News Service (San Francisco Bureau) — WiMax will face a test as an enterprise network technology with Samsung Electronics' entry into the U.S. business market Tuesday at the Interop trade show in Las Vegas.

The South Korean vendor, better known for mobile phones and consumer electronics, is using the wide-area wireless technology as its calling card with a series of all-in-one networking devices for small and medium-size businesses. The Ubigate iBG Series products all combine data networking, voice and security features, and in the third quarter Samsung plans to introduce WiMax modules.

Already making WiMax gear for its home market and working with Sprint Nextel for the carrier's upcoming national rollout of the technology, Samsung has a head start on other vendors competing in this popular space. Cisco Systems will have 3G (third-generation) cellular data modules next month for its popular ISR (Integrated Services Router), but the company has said nothing about WiMax for the platform.

WiMax is designed as an IP (Internet Protocol) network that delivers megabits per second of data over several miles or kilometers. Sprint is betting big on the technology, planning a national network that will first go commercial in certain areas next year. Like 3G, it could serve as a backup connection for small and branch offices or even an economical alternative to DSL (digital subscriber line) and cable modems in some cases. However, betting on WiMax is a long shot when the technology is just starting to emerge globally and has barely arrived in the U.S. Samsung's problem, in addition to its newcomer status, is that it's too far ahead of the market, said Yankee Group analyst Zeus Kerravala.

The lineup consists of the iBG2006 for small branches and small enterprises, the iBG2016 for medium-size branch offices and midsize businesses, and the iBG 3026 for large offices, regional offices and headquarters. The 3026 can accommodate several hot-swappable modules for various functions as well as dual power supplies. All the products provide LAN and WAN (wide-area network) connections.

At a news conference Tuesday morning at Interop, Samsung emphasized the convergence of voice and data, as well as of fixed and mobile communications. This may be a good time to jump into the rapidly changing voice-and-data market, though big players such as Cisco and Microsoft are already active there. A panel discussion on the future of phones and other communications clients at the show drew a standing-room-only crowd.

Samsung's target is enterprises with between 50 and 300 users, with its scope expanding later to 500-person companies, said Alex Kim, vice president of Samsung's enterprise network division. The products will be sold through resellers and system integrators, and Samsung is also open to selling through service providers with a managed services model. The products, introduced last year in Asia, are now available in the U.S. Samsung would not detail pricing but said they will be priced competitively against rival products including the ISR.


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