Cisco, GE Tackle Industrial Networks

Two corporate heavyweights have joined forces to bridge the gap that exists between the enterprise and the factory floor. Cisco Systems and GE Industrial Systems announced today they would form a new company, GE Cisco Industrial Networks, to assess, design and construct network infrastructures for industrial environments.

Lloyd Trotter, president and CEO of GE Industrial Systems, said he would be "disappointed" if the venture is not a "$100-million business within five years."

The new company will, for the first time, enable enterprise communication throughout manufacturing plants, from the floor to the office, which will spur on real-time decision making regarding e-business.

"The factory floor today is disconnected from the enterprise," said Charles Giancarlo, senior vice president at Cisco. "Plant management is limited to weekly or even monthly reports on floor data. This limits e-business. Information could now be easily shared via the Internet."

Traditionally, Ethernet has been used to network offices, while information from the plant floor has been exchanged over proprietary networks. These networks may be reliable, but they often don't interoperate with office networks.

GE Cisco Industrial Networks will promote switched Ethernet as the technology of choice for company-wide networks. Giancarlo pointed to Ethernet's low installation and maintenance costs, ease of integration with the Internet, and its high level of familiarity among IT managers.

The market for Ethernet-based factory networks will reach an estimated $3 billion by 2003, according to Trotter.

The GE Cisco Industrial Networks suite of products and services, now available, includes network assessment and troubleshooting; network design; network installation of Cisco hardware; equipment support, including training, maintenance, and remote monitoring; and integration with existing factory automation and control systems.