Extreme Networks' Extreme Focus On Intelligent Switches

Extreme Networks isn't particularly concerned about trying to emulate its much larger rival, Cisco Systems. At first glance, this might seem counterintuitive. After all, Cisco dominates the market for Extreme's primary product, Layer 2 and 3 Ethernet switches. According to the Dell'Oro Group, Cisco commands a 75 percent market share, while Extreme manages only 2 percent.

But size isn't everything, notes Doug Murray, Extreme's vice president and general manager for volume products. "We don't want to be all things to all people," he says. "We want to focus on the things we're good at--smart network infrastructure--and a specific market, enterprise and service providers. That lets us build the best product for our partners and users. It also lets us focus on them and give them the attention they deserve."

According to Murray, for example, Extreme has received significant feedback to the effect that, contrary to popular wisdom, many enterprise users don't need Gigabit Ethernet throughout their network edges. As a result, he argues, they feel that the dominance of Gigabit Ethernet in enterprise-level switches is pushing them to pay a premium to overprovision their networks.

This information drove the development of Extreme's recently released Summit X250e 10/100 switch, which offers IPv6 and Layer 3 functionality at a relatively low price point. The X250e is also stackable with Extreme's gigabit switches, allowing for scalability that eases later migration to Gigabit. Extreme simultaneously launched the newest version of its ExtremeXOS operating system, which can be installed throughout its entire product line, significantly simplifying management.

Extreme's overall technology strategy focuses on building as much intelligence into its switches as possible, with a particular eye towards enabling security, IP telephony and wireless connectivity at the network edge. It also emphasizes interoperability. While it has a close relationship with Avaya on IP telephony, for example, Extreme supports any vendor's headsets, including rivals Cisco and Nortel.

Extreme's partner relationships, however, have not been without problems; staff and program changes over the past several years have left some channel solution providers feeling left out in the cold.

"We used to have a great relationship with Extreme; we didn't deal with Cisco at all," says Pat Grillo, president of Branchburg, N.J.-based Atrion Communications. "Then, four or five years ago, it seemed like they just forgot the channel. We could barely get them on the phone. That was just when Cisco was getting much more aggressive with their channel program, and well, now Cisco's most of what we sell."

"It seems like they might have been getting better in recent months," Grillo adds. "I'm not sure yet. They make a great product, but they might be a bit late to the party at this point."

Perhaps that sentiment contributed, in part, to Extreme's ranking as just the ninth-favored alternative data networking vendor in VARBusiness' Alternative Vendors Study.

Murray acknowledges some problems with Extreme's past partner outreach but notes that it completed a restructuring of its partner program in October, and asserts that it's been particularly aggressive in its outreach since. "There were some decisions made a few years back that left some partners in some geographic markets with a few question marks," he says. "We tackled those issues over the last year."

"We take the channel very seriously," he adds. "We can build the best technology in the world, but if our partners don't feel like they can do business with us, that's not going to get us anywhere."