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June 12, 2001
Nortel Networks Unveils Industry’s First 10-Gigabit Ethernet Optical Adapter for Servers
Ten-Fold Increase in Link Speed Improves Performance Between Server, Switch
BOSTON – Combining the power of optical networking with the simplicity, flexibility and cost effectiveness of Ethernet, Nortel Networks* [NYSE/TSE: NT] announced the industry’s first 10-Gigabit Ethernet Optical Adapter for Servers. The device is currently in trials with Hewlett-Packard Company.
Nortel Networks 10-Gigabit Ethernet Optical Adapter for Servers drives a ten-fold increase in access and data transfer speeds between servers and networks compared to technologies available to end users and businesses today. This is expected to improve the performance and economics of enterprise and Internet data center services delivery. In the past, server-to-switch transmission rates were constrained both by system architecture bottlenecks and link speed limitations, but newer switching equipment now scales to 10-Gigabit per second levels. Servers are also evolving rapidly to include multiple CPUs, high-speed buses and switched architecture designs that will significantly improve data throughput and management. Nortel Networks 10-Gigabit Optical Ethernet Adapter for Servers will help to accelerate deployment of 10-Gigabit Ethernet into data centers by reducing congestion and maximizing the performance of servers and storage solutions. For end users, this will mean more efficient, less complex and higher performance networks. “Although today’s communications technology is powerful, its capabilities and effectiveness are limited by network/server bottlenecks,” said Pat Walsh, vice president, product management, High-Performance Optical Component Solutions, Nortel Networks. “Our 10-Gigabit Ethernet solutions are designed to break through the bottleneck to deliver high-speed access to eBusiness transactions, databases and other Web-related applications,” Walsh said. “With this product, Nortel Networks continues to provide customers with greater efficiencies and lower costs by leveraging Optical Ethernet capabilities to simplify wide area, metro and local area networks.” The 10-Gigabit Ethernet adapter is currently in trials on HP Superdome and HP 9000 series servers. “Considering customers’ increasing demands on data centers and networks, this announcement represents a significant milestone in 10 Gigabit Ethernet technology,” said Mark Hudson, director of Marketing, HP Business Systems and Technology Organization. “This announcement complements HP’s strategy to provide powerful solutions for an always-on Internet infrastructure.” Nortel Networks 10-Gigabit Ethernet Optical Adapter for Servers will operate in a PCI-X slot and enable any PCI-X based server to cost-effectively accelerate I/O to multi-gigabit speeds. This will enable very high-speed data communication between servers and downstream network devices like switches and routers. 10-Gigabit Ethernet is an emerging technology led by the IEEE 802.3ae Working Group. Cahners In-Stat (September 2000) expects demand for 10-Gigabit Ethernet Optical Adapters for Servers to reach 286,000 units by 2004. For the same time period, IDC forecasts demand for more than 4.5 million 10-Gigabit Ethernet switch ports. Leading a portfolio of 10-Gigabit Ethernet ICs, modules and subsystems for computing, storage and switch router vendors, Nortel Networks expects to begin sampling 10-Gigabit Ethernet Optical Adapters for Servers later this year. Nortel Networks previously announced 10-Gigabit Ethernet integration on Nortel Networks Passport* 8600 Routing Switch. Nortel Networks Optical Ethernet solutions are in service worldwide. Nortel Networks Optical Component Solutions business is one of the largest optical component businesses globally. The business is a world leader in the design, development and manufacture of high-value modules for the Optical Internet, including those for 10 and 40 gigabits per second systems. It has established industry leadership and competitive differentiation by translating the art of innovation and design into volume manufacturing of components and modules that are at the heart of the high-performance Internet. It has employees in Ottawa, Ontario; Boston, Mass.; San Jose, Calif; Raleigh, NC; Harlow and Paignton, United Kingdom; and Sydney, Australia. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel Networks, the Nortel Networks logo, the Globemark and Passport are trademarks of Nortel Networks.Contact for Press and Analysts:
Ben Roome
Nortel Networks
+44 20 7529 3036
benroome@nortel.com
Ann Fuller
Nortel Networks
613-768-1208
afuller@nortel.com
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