Cisco to give away Wi-Fi technology
Published: 24 Feb 2003 16:01 GMT
Cisco Systems announced on Monday it will share key technology at no cost with chipmakers and computer companies to help drive the use of wireless networks within corporations.
The network equipment maker said it will license software designed to improve the security and range of wireless networks that use Wi-Fi technology -- the reigning standard among wireless technologies that has grown in popularity among consumers over the past year. Corporations, however, have been slow to adopt the new technology out of security concerns.
Cisco hopes that by working closely with the leading semiconductor companies and computer makers, it can assuage such concerns.
Chipmakers such as Intel, Texas Instruments and Atheros said they will use the free technology from Cisco to develop new chips with embedded features that enhance wireless security and functionality. Likewise, computer makers such as IBM and Hewlett-Packard said they will come out later this year with new laptops that use the improved chips. Other companies participating in the programme include Agere Systems, Atmel, Intersil and Marvell.
All the gear and devices created through this partnership will be compatible with Cisco network equipment, a company representative said. Once a new product's compatibility with Cisco's networking gear has been confirmed, Cisco will grant it the right to bear a "Cisco Compatible" logo -- mimicking the successful "Intel Inside" branding campaign.
Analyst Christin Armacost sees potential in Cisco's programme.
"We believe (Cisco's) somewhat unusual move will help stimulate the corporate WLAN (wireless local area network) market, which has been slow to adopt the technology due to lack of standards and security issues," Armacost, an analyst at investment banking firm SG Cowen Securities, said in a report on Monday.
The volume of Wi-Fi products adopted by the corporate market is expected to have risen 65 percent to 11.6 million units in 2002 compared with 2001, according to a recent report by market researcher In-Stat/MDR. The security of wireless networks remains the most debated topic within business circles, the report noted.
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