Next-Generation WLANs: Version 1.0: Page 2 of 3

At least some venture capitalists seem to think so. Perhaps they see Cisco's wireless LAN model as flawed and its position as the enterprise WLAN king not quite as secure as Microsoft's dominance in the PC arena proved to be. Why else would we see upward of $100 million flowing into start-up wireless LAN companies in this post-bubble era of cautious tech speculation?

At least half a dozen start-ups--including Airespace, Aruba, Chantry and Trapeze--are rolling out enterprise-oriented wireless LAN infrastructure systems this year. Some are well-funded, well-managed and bursting with bright engineers trying to build a better mousetrap.

But it's a good bet that two years from now, most of these companies won't be around. Despite this market's significant growth potential, there isn't enough business to sustain them.

NOT AS EASY AS ETHERNETSome analysts refer to the new WLAN systems as wireless switches, but that's a misleading term that conjures up too close a comparison to Ethernet switches. Wireless LANs are significantly more complex than Ethernet LANs, at both the physical and data link layers. So while Ethernet switch designers don't have to think twice about moving bits reliably down copper and fiber cables, WLAN infrastructure designers must devote an extraordinary amount of attention to the matter.