With a claimed 25% share of the European high-end Token Ring hub market, the Migda Ha-Emek, Israel-based LanOptics Ltd has established a UK subsidiary through which it plans to boost its profile here. To date, LanOptics has used distributors such as Datarange Communications Ltd, but following the establishment of the UK company, it is now to sell direct where it feels this is more strategic. Indeed, the plan has coincided with the takeover of Datarange by SFA Inc which – conveniently for LanOptics invalidates the current contract, enabling LanOptics to decide whether to continue the relationship. According to Christopher Wyles, managing director of LanOptics Plc, the company will initially concentrate on the Token Ring market, despite the fact that it also has Ethernet products in its range. The reasoning for this is that other people have a very good brand name in Ethernet – we don’t, and that the Ethernet marketplace has become too commodity-like.
Protect 3270 investment
Wyles did, however, drop hints that LanOptics has its own proprietary 100Mbps Ethernet system up its sleeve, which may be launched around the end of the year. While he would not be drawn on exactly how the higher speed has been achieved, he did say that the system enables users to retain their existing equipment. The company also intends eventually to produce Asynchronous Transfer Mode products, but is waiting for the specifications to be finalised before it makes its move. LanOptics claims several specific advantages for its Token Ring hubs. In particular, the chips used are claimed to eliminate jitter completely, enabling, the company says, a virtually unlimited number of users to be supported on a single network it claims that 500+ users are possible. It also says that because the hubs incorporate fault watch on each port, managers are alerted to beaconing terminals within 20mS. Finally, the company feels that the ability of its products to use 3270 coaxial cable, coupled with their ability to mange 3270 dumb terminals, gives it a unique advantage in targeting companies wanting to protect existing investment in 3270s as part of their migration strategy. One advantage LanOptics has over other companies is that although Israel is not in the European Community, there are no import duties payable for importing the products into Community countries. Similarly, Wyle says the Israeli government pays extremely generous research and development grants, which enable the company to spend 17% of its revenues in this area. The new UK company, based in Bourne End, Buckinghamshire, currently has 12 employees. In other countries, LanOptics has a variety of distribution arrangements; in Australia, Ungermann Bass Inc acts as its distributor, while IBM Corp acts as a reseller for the company in Norway. Indeed, LanOptics has just announced a $4.5m contract under which IBM is to supply LanOptics hubs for the Fellesdata joint venture between Norway’s savings banks (CI No 2,131). They will be used to connect over 25,000 point-of-sale terminals, with each hub linked via an X25 network.
