Local Cabletron Systems managing director Ian Fewtrell claims the company's stunning financial results for Q1 1998 prove its acquisition of Digital's Network Products division in February was a success.
In sharp contrast to Compaq's recently announced post-Digital acquisition plans -- which will see thousands of Digital employees laid off worldwide -- Fewtrell contends that Cabletron's acquisition of Digital's networking business has resulted in zero redundancies.
For the first quarter in 1998, Cabletron Australia and New Zealand reported 300 per cent revenue growth over the same period last year. Recent figures from the Gartner Group estimate the combined net growth of Cabletron and the Digital Network Products division at more than 50 per cent against a market average of about 14 per cent.
For the Australian switching market, Gartner also places Cabletron and Digital Network products at number four and five respectively with combined sales pushing them into number two position behind Cisco.
"It shows we are taking market share from someone," Fewtrell said. "My question is, whom?"
Key factors aside from the Digital acquisition for the results, according to Fewtrell, were the success of the company's SmartSwitch ATM switches and wide uptake of its Spectrum network management solution.
"We now have the largest installed base of ATM in the southern hemisphere," Fewtrell said.