Microsoft and Intel Join Forces to Enter Telecoms Equipment Market

Strategic Insights -

Microsoft and Intel, having dominated the personal computer market with their "Wintel" monopoly, are now targeting the telecommunications equipment market with a joint alliance with Hewlett Packard and Nortel. The market, worth an estimated $250 billion annually, is currently led by companies such as Cisco Systems and Lucent Technologies. The new partnership aims to develop network products that compete directly with Cisco, utilizing the "Wintel" standard to handle both voice traffic and data transmission.

Key Takeaways:

  • Microsoft and Intel will provide software for Nortel to develop network products competing directly with Cisco Systems.
  • The new products will conform to the "Wintel" standard, using the Windows NT operating system and Intel's Pentium microprocessors.
  • The alliance plans to introduce a system that allows small and medium-size businesses to treat voice calls like data traffic, reducing the cost of directing telephone calls within a company.
  • The system reflects the shift toward networks based on Internet protocols, which greatly reduce the cost of making phone calls.
  • Other network and telecoms equipment providers, such as Cisco and 3Com, have already introduced products for routing voice traffic on a corporate data network.
  • The market for telecoms equipment is valued at an estimated $250 billion annually and is dominated by companies like Cisco Systems and Lucent Technologies.
  • Microsoft supplies 90% of PC operating systems, while Intel has 80% of the computer chip market.

Statistics:

  • The market for telecoms equipment is worth an estimated $250 billion annually.
  • Microsoft supplies 90% of PC operating systems.
  • Intel has 80% of the computer chip market.
  • The new alliance plans to develop network products competing directly with Cisco Systems.

Sources:

  • "Microsoft and Intel Team Up to Take On Telecoms Equipment Market" (Date not provided)
  • Cisco Systems' acquisition of Selsius Systems (Date not provided)
  • 3Com's acquisition of NBX (Date not provided)