Hardware to Promote Home Nets

Microsoft has released a line of networking hardware aimed at homes and small businesses. Called “Microsoft Broadband Networking,” the line comprises wireless and Ethernet components designed to make it easier for nontechnical users to interconnect computers and share a broadband DSL or cable Internet connection. Microsoft is entering a field that is already served by existing, low-cost products, but it hopes its powerful brand will enable it to achieve profitable volumes quickly, and its entry will expand the field to spur PC growth and support other long-term business goals.

Why Do It?

The Microsoft Broadband Networking product line includes everything that most home users will need to network their computers to a DSL or cable modem. (For a complete list of products and prices, see the sidebar “Broadband Networking Products and Prices“.) The product line breaks no new ground, compared with offerings from vendors such as Belkin, D-Link, Linksys, and NETGEAR. However, Microsoft hopes its entry will speed adoption of home networks by users who are intimidated by the complexity and unfamiliar brands of existing vendors. (See “Wireless Home Networking Hardware Planned” on page 23 of the Sept. 2002 Update.) This could pay off for Microsoft in several ways: