Chipmaker Intel aims to be the number two networking hardware vendor, behind Cisco.
Archie Wilson, Intel's national sales manager, said the company had strong ambitions for its networking products.
Intel's first step was to buy-out boutique software developer Dayna Corporation, whose products will now be sold as InBusiness. The line will be distributed by Sydney-based Conexus, which previously handled Dayna Corp's products.
Wilson said Conexus was traditionally placed as a Macintosh reseller, and this deal gives Intel access to a "new channel".
"The only way to get into the small business market is to deal with channel partners that are small businesses themselves," Wilson said.
Intel's push into the networking market started last year. Wilson wouldn't rule out further Intel acquisitions as the vendor pursued that goal.
He said it was a natural progression for Intel to become involved with networking: "Networking hardware all rely on microprocessors".
"By the year 2000 we want to have 250,000 small businesses connected to the Internet," Wilson said.
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