response to ramjet 6 june

This is a response from Senetas to Ramjets observations previously posted on nthe 6th June. As indicated at the time, here are the requested resonses from the Senetas technical personel.

Ramjet posted amongst other things on the 6th June 2007 the following-:

RAMJET COMMENT 1

"While the award and the Quantum product sound exciting it will not be a big revenue earner for SEN.
The simple reason for this is that Quantum encryption will only work over a continuous section of fiber optic cable. In a modern telecommunications network the length of a continuous piece of fiber is short as there are many amplifiers/switches etc in the network.
So you could not use it for any international link or countrywide link. It would have to be very local probably 10 to 20km from start to finish. There are not many applications for this".

SENETAS REPLY:

Our work with idQuantique was to develop a hybrid system which we did and it is for this that we received the award. The hybrid system allows for 1 QKD (Hybrid system) to support multiple CypheNet products running
at up to 1Gbps. So each time a QKD is sold we sell our Cyphernet products. We have in POC as many as 8 Cyphernets hanging off 1 QKD and the applications for this are many.



RAMJET COMMENT 2

"The more I look into this company the less I see of leading edge technology that is needed by today's global companies.
I haven't finished my research yet on this but I think that is why SEN revenue is so poor. Their products address only a very small section of the security market. Having 100% of a $5M market doesn't excite me that much.
So it really is just all hype.


SENETAS REPLY

The encryption market that Senetas address's is dominated by switch and router vendors and so 80% of all encryption sales are Ipsec (layer 3) and 20% Layer 2 what we have been doing. Senetas has already announced a new product 2086 that is switchable Layer 2 and 3 and can be configured at the console to be either or. This will allow Senetas to compete
in the total market and many customers are upgrading their networks and the 2086 will give them an opportunity of seeing both Layer 2 and 3 at
work. The inherent benefits of Layer 2 is that it runs at line speed and no latency. Layer 3 Ipsec uses up to 50% more bandwith and has latency because of the nature of what it does. Everything is packetised and so
its slower and more expensive. As an adjunct some of the largest telco's globally are deploying new networks which are VPLS rather than MPLS and VPLS is all Layer 2. So the products are right - they cover ATM, SONET
and Ethernet and run from 10Mbps - 10Gbps. Reality is up until Sept 10th 2006 Senetas had one channel for revenue and that was SFNT and they were
predominantly focussed on Defence business.


Now you be the judge!

ciao