NOKIA TO ACQUIRE NETWORK ALCHEMY FOR IP CLUSTERING AND SECURE VPNS
Nokia plans to acquire Network Alchemy, a startup developing IP clustering and VPN technology, for about US$335 million in stock.  Network Alchemy's "CryptoCluster VPN gateways" offload process intensive encryption traffic from routers at the edge of the enterprise infrastructure, allowing them to concentrate on routing unencrypted traffic.  Alchemy's hardware provides wirespeed routing for the encrypted traffic.  The IP Clustering technology allows several devices to act as a single network entity, sharing IP addresses and identity, and distributing IP packet processing equally among all of the nodes in the cluster. The product set offers session failover and dynamic load balancing features.  Major customer deployments include MindSpring's major data centers, Sprint's Global Managed Internet VPN, Monsanto and Instinet.  Network Alchemy was founded in September 1997 and is based in Santa Cruz, California. 
http://www.network-alchemy.com   http://www.nokia.com
Nokia, February 1, 2000

BROCADE AND OPTICAL NETWORKS TO TIE SANS INTO METRO FIBER
Brocade Communications will optimize its enterprise storage networking systems for interconnection with Optical Networks' metropolitan fiber architecture.  The two companies plan to integrate their respective management software platforms, ensure interoperability between the BROCADE SilkWorm family of Fibre Channel fabric switches and Optical Networks' Dynamic Transport System (DTS).  Initial software work will be ready in Q2.  Optical Networks’ Dynamic Transport System includes DWDM transport, optical layer switching, dynamic add-drop on all optical channels and flexible-rate client interfaces for ring, arbitrary ring-mesh and full-mesh topologies.  Up to 66 wavelengths are supported.  The combined Brocade/ON SAN-to-SAN system would support up to 2 Gbps per wavelength or 132 Gbps per system.
http://www.brocade.com/BrocMarket.nsf/News/PR-OptNet-02-01-00
http://www.opticalnetworks.com/
Brocade, February 1, 2000

INTERXION TO BUILD INTERNET EXCHANGE CENTERS IN 11 EUROPEAN CITIES
InterXion (pronounced Inter-Action) received more than 100 million Euro (US$97 million) in new financing to build neutral Internet Exchange Centers in 11 European cities.  The facilities will provide connectivity and switching between ISPs, e-commerce providers and telecommunications companies. InterXion will also offer its customers a Virtual Dealing Room for buying/selling bandwidth and telecom minutes.  InterXion currently operates its "carrier hotels" in Amsterdam, Frankfurt, London and Paris.  The new financing came from Baker Communications Fund, Bear Stearns Merchant Banking, Fleet Equity Partners, Morgan Stanley Dean Witter, Residentie Investments and Paribas Deelnemingen N.V.  http://www.interxion.com/
InterXion, February 1, 2000

ERICSSON'S WIRELESS IP BASE STATION IMPLEMENTS DIFFSERV
In an important step toward all-IP wireless networks, Ericsson introduced an IP Base Station System (IP-BSS) that provides quality of service for voice and other real-time sensitive services by incorporating a wireless optimized implementation of the Differentiated Services (DiffServ) to classify and prioritize traffic.  The company also announced a Realtime Router based on the same IP and ATM platform  as its Media Gateway for WCDMA third  generation networks.  Ericsson said the platform could be introduced into existing GSM and TDMA networks in an evolutionary approach to 3G.  http://www.ericsson.com/pressroom/20000201-0003.html
Ericsson, February 1, 2000

QUALCOMM DELIVERS 3G CDMA CHIPSET SUPPORTING 153 KBPS
QUALCOMM began sampling the first 3G CDMA 1x Multi-Carrier (MC) solution for CDMA handsets that is compliant with the ITU 3G standard.  The device supports data rates of 153.6 kbps on both the forward and reverse links.  It is also pin-compatible with Qualcomm's earlier chip, which is being used by 29 handset manufacturers.  http://www.qualcomm.com/
QUALCOMM, February 1, 2000  

MICROSOFT ANNOUNCES WINDOWS TELECOMMUNICATIONS ALLIANCE
Microsoft has organized a Windows Telecommunications Alliance to promote its operating system among network equipment providers (NEPs) and independent software vendors (ISVs).  Membership information is online.
http://www.microsoft.com/isn/windowsta/
Microsoft, February 1, 2000

AVANEX IPO EXPECTED SOON – A DEVELOPER OF PHOTONIC PROCESSORS
Avanex, a developer of photonic processors, plans to complete an initial public offering (IPO) this week of six million shares (symbol AVNX).  In its prospectus, Avanex reported revenue of $4.4 million for the quarter ended Oct 1.  Its primary customers included MCI Telecommunications, Osicom and Hitachi.  The company currently offers a tunable wavelength filter multiplexer and demultiplexer.  It is also shipping a unique "PowerMux" Wavelength Processor designed to multiplex hundreds of wavelength channels with very tight channel spacing (down 12.5 GHz).  The company claims the concept can deliver optical transmission at up to 80% utilization efficiency, compared with 20% delivered by conventional DWDM equipment.  The system allows DWDM multiplexing and demultiplexing of optical signals at the origin and destination of a transmission path, in addition to offering optical add-drop multiplexing at any point in the transmission path.  Future product plans also include a "PowerShaper" chromatic dispersion compensation processor that reshapes individual optical signals at the receiving end of the optical fiber.  The product is in beta testing.  Avanex is also developing a "PowerExchange" real-time, reconfigurable optical add-drop multiplexer, and a "SuperPowerShaper" variable, chromatic slope compensator.   Avanex is headed by Walter Alessandrini, who previously served as president and CEO of Pirelli Cables and Systems North America.  

The company's full prospectus is available via Edgar Online here (direct link for AVNX).
Converge! Network Digest, February 1, 2000