Expand Signs With H3C

WAN optimization vendor has multiyear deal with cagey router player owned by 3Com

March 6, 2007

3 Min Read
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WAN optimization vendor Expand Networks has signed a multiyear agreement with Huawei-3Com (H3C) whereby routers from H3C will be equipped with integral WAN optimization from Expand later this year. (See Expand Teams With H3C.)

The move is interesting on several fronts. It's further proof of the growing popularity of WAN optimization and WAFS (wide-area file services) and the trend toward integrating the combined technologies in software with routers and other networking gear.

Expand, for instance, says it created a software-only version of its Compass optimizer as part of the H3C deal. Expand's software will first appear later as part of H3C's network management software for switches and routers.

Cisco has taken this kind of unbundling approach with its Wide Area Application Services (WAAS) software, which is sold with Cisco's Integrated Services Router (ISR). (See Cisco Intros Services.) Packeteer has also moved its wares to a software-only platform for similar flexibility. (See Brocade & Packeteer Widen Target.)

Terms of the Expand/H3C agreement, including its duration, weren't provided. But it includes worldwide sales rights with joint development. And it is not exclusive; Expand says it's free to OEM with other vendors.The geographic reach of the deal is a question. Despite the worldwide rights, H3C will initially sell Expand-equipped management software via channels and directly in China, then in the rest of the Asia/Pacific region. Europe will follow, but there is no specific plan to come stateside.

This fits. While H3C, which is primarily owned by U.S. firm 3Com, is clearly focused on expanding its products out of China and the Asia/Pacific region, it's not in a particular hurry to do so. IP SANs sold only in China, for instance, are probably not going to be available anywhere else until and unless H3C is convinced they can compete in crowded western markets. (See On 3Com's Storage Trail.)

Still, the market for WAN optimization is growing. According to Infonetics Research, sales of WAN optimizers grew 23 percent between the third and fourth quarters of 2006. Annual revenues rose 37 percent between 2005 and 2006. (See WAN Optimization Heats Up.)

To stay ahead of demand will be a challenge for Expand and the other WAN optimization players, including Blue Coat, Exinda, Juniper, Silver Peak, and Riverbed in addition to Cisco and Packeteer.

Expand's management claims they're ready. The company, which now has 145 employees, claims to have shipped 29,500 units to more than 1,450 customers by the end of 2006. (See Expand Increases Customers.)Execs also say Expand's software-only platform gives it an edge and will enable Compass to move to servers and blade-based platforms once routers are conquered. But other suppliers, such as Riverbed, claim their own advances, such as support of SSL traffic, which Expand doesn't yet handle. (See Riverbed Steps on SSL Gas.)

Bottom line? WAN optimization and WAFS continue to move into data center gear, heralding ongoing integration with IT networks. Expect progress to be quick and, in terms of the fierce competition, merciless.

Mary Jander, Site Editor, Byte and Switch

  • Cisco Systems Inc. (Nasdaq: CSCO)

  • Exinda Networks

  • Expand Networks Inc.

  • Infonetics Research Inc.

  • Juniper Networks Inc. (Nasdaq: JNPR)

  • Packeteer Inc. (Nasdaq: PKTR)

  • Riverbed Technology Inc. (Nasdaq: RVBD)

  • Silver Peak Systems Inc.

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