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July 19, 1999

Wireless LANs Set To Take Off

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Large, established networking companies such as Cabletron and Nortel Networks also offer wireless LAN products, and more networking companies are getting into the market. 3Com recently announced a joint technology agreement with Symbol, which is developing an 11-Mbps product called Spectrum24. 3Com also plans to offer its own AirConnect line of 11-Mbps products this fall. And analysts say Cisco Systems, which already has a strategic investment in RadioLAN, is also poised to enter the market.

With costs coming down, speeds increasing, and a wireless LAN standard in place, analysts and IT managers say the technology is ripe for adoption.

"Companies have made significant investments in Internet-intranet environments and have flooded their employees with portable devices," says Gartner Group's Egan. "They've created network addicts, and now they're seeing increased demand to connect. Wireless LANs are becoming a strategic investment."

For some companies, wireless networking is the only way to network. Morristown Financial Group, for example, has never had a wired network. "I like the laptop aspect," says John Hyland, president and CEO of the Morristown, N.J., financial-management firm. "We can sit in a group meeting and be connected to any information we need."

Farpoint's Mathias agrees. "Most professionals are now using mobile computers. Wireless might seem a little exotic at first, but once you try it you'll never go back."

Time Saver
IT managers are also beginning to understand that wireless LANs also produce time benefits. A wireless LAN has substantially cut down on the time needed to add new users to the network, according to University Access' Cremean. He calls his wireless network "a lifesaver" because he can add 10 new users in one weekend. "Try that with wires," he says.

And wireless LANs have shortened hospital visits at the Duke University Health System in Durham, N.C., according to Dave Kirby, director of the Center for IT Innovation at the health system. The hospital has 130 cells of Aironet's 4500 Series 2-Mbps product installed to give hospital staff the ability to access information while roaming throughout the building.

The ability to enter and receive information more quickly makes a difference. "For hospitals, the name of the game is shortening the length of stay," Kirby says. "In this situation, the faster information is delivered, the shorter the length of stay will be. That's our gain."

Those types of gains are among the reasons wireless LANs should soon become more popular, Farpoint's Mathias says. "A lot of reasons for implementing wireless LANs are soft-dollar cost savings, like productivity increases. But the reality of having access to corporate information wherever you go is a tremendous benefit."