BUSINESSWEEK ONLINE : MARCH 13, 2000 ISSUE
COVER STORY

THE NEW INTEL


COMMUNICATION PRODUCTS
Nine years after launching its first networking gear, Intel has only a single-digit share of a $20 billion market. Now it's aiming for fast-growth segments: Home networking, broadband modems, PC-based telephony, and server appliances.
Chart: Communication Products Revenues
DATA: CAHNERS IN-STAT, COMPANY REPORTS
THE BOSS
John Miner, 45, used to run the company's servers and work-stations effort. Barrett tapped him last July to head a new 3,000-person Communications Products Group. Miner is gung ho: "Barrett says he'd rather come running after me and pull me back than have to push me out to the edge."

PRODUCTS
Intel's lineup includes Ethernet hubs, small networking switches, and routers. It recently rolled out a line of specialized servers that manage Web traffic and speed up e-commerce. And it sells PC-based phone systems.

HOW INTEL STACKS UP
Intel is up against 3Com, Nortel, and Cisco in home and small-business networking. As it pushes into broadband modems, it crosses Alcatel, Motorola, and others. And in specialty markets such as Web appliances and PC phones, it bumps into Alteon, Natural Microsystems, and others.

ACQUISITIONS
Intel's most active area. In 1997, it bought Case Technology (for $72 million) a maker of low-end networking boxes. Since then, it has gobbled up the likes of IPivot ($500 million), which makes secure e-commerce servers; and Dialogic ($732 million), a leader in PC-based phone systems.

MARKET GROWTH
Network gear is big business, but growth is slowing.



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