ANALYSIS

Application Integration Industry Analysis

Application Integration Industry Market Forecasts

Cable Infrastructure Product Descriptions

Cable Infrastructure Technology

Infrastructure Equipment Company Profiles

Cisco and IBM have positioned to drive EAI into the trillion dollar packaged software automation of IT departments. The general theme of the market direction is the following. Packaged integration software is more efficient than hard coded solutions by the IT department, because they can be upgraded more efficiently. With packaged software the cost of upgrades is spread across the customer base, significantly increasing the cumulative functionality of the infrastructure.

The current IT investment in integration is trillions of dollars per year. If this money can be spent on packaged software, all companies will run more efficiently.

EAI markets are expected to reach 4.7 billion by 2007.

Markets for EAI banking and finance at $216.3 million in first half 2002 are expected to reach $1.1 billion by 2007.

Companies Profiled

Agere Systems

Arris

Blonder Tongue

C-COR

JDS Uniphase

Harmonic

Cisco Systems

Motorola

Olson Technology

Philips

Steren Electronics International / Pico Macom

Pulsent

Scientific Atlanta

Tektronix / VideoTele.com

REPORT METHODOLOGY

This is a new report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

WinterGreen Research , founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

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REPORT NO. I99938459200 450+ PAGES 100 TABLES AND FIGURES 2002

Application Integration Market Assessment