Cisco Grabs VPN Startup
Slowdown or no slowdown, Cisco Systems has acquired yet another networking firm. Last month, Cisco bought Allegro Systems, a 39-employee startup that develops virtual private network acceleration technologies, for about $181 million in stock. Allegros system is designed to speed up VPN connections over high-bandwidth networks.
Feeling competitive heat from Advanced Micro Devices and Transmeta, Intel last week launched a new processor family, the Pentium III-M, designed for mobile PCs. At speeds up to 1.13 gigahertz, the Pentium III-M chips are up to 20 percent faster and 40 percent more power-efficient than Intels last mobile chips, the company said. Major PC makers announced notebooks with the chip, including Compaq Computer, Dell Computer, Hewlett-Packard, IBM and Toshiba America Information Systems.
Palm to Form OS Subsidiary
Palm plans to separate its Palm OS development group into a wholly owned subsidiary by the end of 2001. Palm CEO Carl Yankowski says that the move will give all of the companys divisions "a greater clarity of mission." Analysts suggest that the struggling handheld maker hopes that separating the software group will reduce the conflict between Palms own hardware business and companies that license the Palm OS.
Facing declines in online advertising and software sales, RealNetworks last month said that it will lay off 15 percent of its employees. The companys first-ever job cuts will eliminate about 140 of RealNetworks 950 staffers.