(EMAILWIRE.COM, September 30, 2003 ) CEDAR KNOLLS, NJ - The accelerating use of microprocessors and other general-purpose computing components to build nodes within voice networks represents an opportunity for IT/computing companies to penetrate the once-exclusive domain of vertically integrated telecom suppliers, according to a new report by Probe Group.

Network equipment providers (NEPs) can no longer justify building proprietary telecommunications equipment. Rather, in association with the IT/computing industry, NEPs are addressing fundamental questions regarding how network equipment is built. The voice industry's insistence on reliability, high availability and redundancy is driving industry cooperation (e.g., Service Availability Forum) and standards (e.g., AdvancedTCA) as the IT/computing industry attempts to establish a solid beachhead in the "carrier-grade" voice world.

Christine Hartman, Probe research director, suggests that ".commercial off-the-shelf (COTS) computing products are being aggressively marketed toward both traditional network equipment providers and emerging independent software vendors as each competes for its share in next-generation network markets." Probe estimates that the market for VoIP-related COTS servers will grow significantly over the next five years.

But, looking back 10 or so years from now, the main impact very likely will not be what happened to voice itself. Rather, the more important legacy may well be the sense of quality packet voice brought to data networks and the wider acceptance of multimedia forms of communications that resulted.

Probe's latest report, "Next-Generation Voice Networks and the Opportunity for IT/Computing," discusses changes in NEP supply chains as they build equipment for next-generation packet voice networks. In particular, the report focuses on opportunities and issues associated with the use of COTS servers and operating systems (e.g., Solaris, Linux) rather than purpose-built components. This report is part of the IT/Computing in Service Provider Networks service, which analyzes the ongoing efforts of IT vendors in telecom markets, identifies areas of opportunity and evaluates strategies that are succeeding versus those that are not. The service focuses on how to sell into carrier networks, outsourcing of various services, building and operating networks for enterprise and service providers, OSS services, VoP and IP services, hosting market opportunities, and Wi-Fi and wireless in the enterprise as markets for IT firms.

About Probe Group LLC
For over 26 years, Probe has leveraged its unique insights and extensive experience in both the traditional world of telecommunications and the burgeoning world of data and packet networks to offer clients sound counsel and realistic market forecasts. Probe has successfully maneuvered clients through changes in demand, demographic shifts, introduction and evolution of new technologies and platforms, industry structure transformations and financial market volatility. Probe provides clients with expert guidance through continuous research services, consulting projects, retainer programs and a variety of other direct analyst-access services.
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To obtain more information on the report, "Next-Generation Voice Networks and the Opportunity for IT/Computing" (ITCSPN, Vol. 1, No. 3), the IT/Computing in Service Provider Networks service, or to arrange an analyst interview, contact Karen Verrinder or visit Probe on the web at www.probegrp.com.

Karen Verrinder
Public Relations Manager
Tel. 973.285.1500, ext. 227
E-mail: kverrind@probegrp.com

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