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Commentary: Upcoming Ethernet products crucial to Broadcom growth

Broadcom has a fairly strong track record in the traditional Ethernet market, considering that it has only been a major player for a handful of years.

See news story: Broadcom eyes optical market for new chip business

By IdaRose Sylvester, Gartner Analyst

Broadcom has a fairly strong track record in the traditional Ethernet market, considering that it has only been a major player for a handful of years.

The company has shown the ability to do two things well. First, it has demonstrated a consistent ability to release the next logical product in each of the markets it addresses, as well as the ability to deliver.

Second, it has acquired new companies that will help it expand its markets or enhance its technology.

Making the right acquisitions and managing and integrating them well is a big part of guaranteeing sustained growth in the future. Most of the acquisitions that Broadcom has made are still fairly new, but the products the company has recently announced will complement its core business.

These two factors have taken Broadcom a long way toward delivering "systems on a chip" and end-to-end networking solutions. It has also entered a wide range of specialty markets, such as home networking and network security.

Although these are nascent markets today, they provide key building blocks and complement products. For example, home networking technology meshes with cable modem and set-top box technology.

The company's challenge now is to deliver the next logical Ethernet product, which is 10-gigabit Ethernet and support for optical fiber to sustain such speeds. This is the last great stop on the Ethernet roadmap, and a critical product area.

In focusing on this milestone, Broadcom is taking the logical next step in its product development to keep on top of the market trends shaping the industry.

Entire contents, Copyright © 2000 Gartner Group, Inc. All rights reserved. The information contained herein represents Gartner's initial commentary and analysis and has been obtained from sources believed to be reliable. Positions taken are subject to change as more information becomes available and further analysis is undertaken. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of the information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof.