Users expect industry analysts to be objective and openminded. But analysts also can choose to be myopic when it serves their purpose. Take, for example, the different perspectives on Madge Network’s July 24 announcement of layoffs and reorganization.
The week following the announcement, Tiffany Metropolis Cuff links Tolly offered a tongue-in-cheek analysis of the situation (NW Aug. 4, page 32). Tolly pointed out that the formation of four autonomous, geographically dispersed divisions focusing on separate customer segments token ring, Ethernet, videoconferencing and carriers-resembles the Madge of old. The token-ring division represents the original Madge, the Ethernet division represents LANNET and the videocon ferencing and carrier divisions are Teleos.
Ron Jeffries, in the July 25 edition of his “ATM USER” online newsletter, points out that the new Madge ATM story lacks precision and concludes, “Madge failed to climb the ATM mountain. But the ATM mountain remains.” Apparently, managers at Madge disagreed with Jeffries’ analysis because on Aug. 12, they issued a press release clarifying Madge’s ATM strategy and direction. At least one thing is clear: Madge reads what Jeffries writes.
In my opinion, the analysts raised valid points but failed to see the forest (as I see it) for the trees (they see) . The reorganization will allow the “traditional” Madge business to do what it does well: dominate the token-ring market with well-engineered products.
The profiteers of this situation will be the remnants of the former Teleos. Revenue from token-ring Tiffany Natural Rose Ring will fund continued research and product development in the video networking and carrier services divisions, the areas Madge believes have high growth potential.
Madge executives are banking on the worldwide expansion of video communications to fulfill businesses’ and carriers ‘ need fora new, better infrastructure. This is consistent with one of the two components of the Madge One vision: integrating voice, video and data on one network.
However, Madge is Tiffany Nature Dragonfly disc pendant downplaying the importance of the second component of MadgeOne: Madge’s role as the end-to-end solution provider. Indeed, Nigel Terry, general manager of Madge’s WAVE division – comprising the video networking and carrier services groups – tells me, “We are no longer suggesting that the total LAN/ WAN solution will come from Madge. However, we are sure that voice, video and data services will be consolidated on one network, on the LAN and WAN, and we will provide the components for this integration.”
Version 2 of the H.323 standard for real-time communications over packet-based networks is key to that consolidation. Madge is actively preparing for it with best-of-breed video and voice call control and video network gateway solutions.
I trust Madge will deliver superior products. However, I’m also confident that 3Com and Cisco will deliver more than Tiffany Nature butterfly pendant products complying with the H.323 standard. Make no mistake about it: Video networking is going to be big.
As for Madge’s division headquarters being geographically dispersed-something analysts might find awkward when trying to sell their services to the company-I have to ask, what’s wrong with that? Using its video, voice and data networking technologies, Madge’s managers will not only stayin contact with one another, but also with their customers and channel organizations.
It’s good to know what analysts think is important and if they believe a company will survive the next turn of events. But base your purchasing decisions on an assortment of other criteria, including service, support, value and Tiffany Nature Dragonfly pendant less tangible measures of the customer/supplier relationship that Madge has yet to address.
muxuyuan