Strix
Competitive Analysis
Maria Sumnicht and Rani Glaser
May 2008
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Disclaimer
All information in this presentation is NextWave Highly
Confidential and should not be shared unless expressly
authorized by NextWave.
Under no circumstances is this information to be given
to customers, partners or resellers.
This information is current to the best of our knowledge
at the time of publication
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Outline
 Executive Summary
 Strix Products
 Strix Architecture
 Strix Business Model
 2007 Wins
 SWOT Analysis
 Conclusion
 Sources
www.tropos.com
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Executive Summary
•
•
•
•
•
•
•
Executive Summary
Company Background
Company Key Executives
Board of Directors
Investors
Company Growth
Revenue and Market Share
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Executive Summary
 Location: Calabasas, Calif.
 CEO: Bruce Brown is formerly CEO of Efficient Networks, a DSL
equipment maker acquired by Siemens AG in early 2000.
 Company name: CEO Brown, a native Iowan who "knows a lot
about barn owls," coined this name from the Latin equivalent. The
metaphors are rich: Owls do their best work in the dark, they're
ruthless predators and they're wise.
 How did the company start? In April 2000, Brown teamed with five
others, most from telecom software vendor Vertel, to create
Bluetooth radio products. They switched focus to 802.11 WLANs in
summer 2002, with Bluetooth deployments failing to catch on.
 Funding: $34 million, including a $15-million fourth round that
closed in October 2003. The initial $19 million in funding was from
El Dorado Ventures, Palomar Ventures and corporate investor
Siemens.
 Products: Access/One Network OWS 2400 and 3600, capable of 4
& 6 radios per node, respectively.
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Company Background
 Original product was an indoor mesh solution
 First indoor product shipped in 2004
 Outdoor solution involves putting indoor modules into
an outdoor enclosure (since 2005)
 First outdoor product shipped in 2006
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Strix Company Key Executives
http://www.strixsystems.com/corporate/leadership_team.asp
Bruce Brown
Chairman and Chief Executive Officer
Previous Companies: Efficient Networks,
Vertel Corp., Ungermann-Bass
Gordon Almquist
Chief Financial Officer and Chief
Administrative Officer
Previous Companies: Vertel Corp., 3D
Systems Corporation
Alexander Berg
VP of Research and Development
Previous Companies: Lucent
Technologies, Ascend Communications
Tom Mooreland
VP Worldwide Sales
Previous Companies:
UB Networks, AT&T
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Martin Levetin
VP Carrier and Municipal Networks
Previous Companies:
NeoReach Wireless, Evergreen Open
Broadband, Sharegate, Socket
Communications, Blueprint Ventures
Bill Takanabe
Vice President, Operations
Previous Companies:
Newport Corporation, ADC Fibermux Corp.
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Board of Directors
 Gordon Almquist, Chief Executive Officer
 Bob Obuch, Palomar Ventures
 Tom Peterson, El Dorado Ventures
 Blake Modersitzki, UV Partners
 Bruce MacNaughton, Crosslink Capital
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Investors
 Funding from El Dorado Ventures, Palomar Ventures,
Windward Ventures, CMEA Venture, UV Partners and
Crosslink Capital.
 Strategic investment by Samsung (2/2007)
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Company Claim To Fame
 Multi radios (up to 6 radios)
 High speed roaming (up to 200MPH)
 Full duplex backhaul
 Video Surveillance (camera product)
 Mobility (vehicular product)
 Voice over mesh
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Revenues and Market Share
Q1 2006
Q2 2006
Q3 2006
Q4 2006
Total
2006
Q1 2007
Q2 2007
Revenue
$4.0
$5.6
$6.0
$8.2M
$23.8
X
X
Service
Provider
Market
Share
24%
26%
23%
26%
25%
X
X
Fiscal Year End: December
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Strix Architecture
• Strix Architecture Diagram
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Strix Wi Fi Architecture
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Strix Products
•
OutDoor Wireless System (OWS)
–
–
–
–
OWS 2400
OWS 3200
MWS 100
NMS – Manager One
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Strix OWS 2400
Wireless
◗ High-performance, multi-node and multi-radio mesh
architecture.
◗ Low latency and high throughput across multiple
wireless hops.
◗ Up to four 802.11a, b and g radios per node
(upgradeable), with power output up to 1W per radio.
◗ Full duplex mesh.
Security
◗ Supports all industry standard security protocols.
◗ RADIUS, WPA, EAP-MD5, EAPTLS, PEAP-TTLS
authentication.
◗ 802.11i (WPA2) with AES, WEP encryption.
◗ MAC address Access Control Lists on a per SSID basis.
◗ Full VPN support.
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Strix OWS 2400
System
◗ All nodes auto-discover and selfconfigure.
◗ Self-tuning and self-healing mesh for network optimization.
◗ User definable QoS with voice, video and data prioritization.
◗ Up to 16 BSSIDs per radio.
◗ Multiple SSIDs (per network and per node) and VLAN tagging, with
configurable security parameters on a per-SSID basis.
◗ Session persistence for roaming, path optimization or failover.
◗ Manager/One® Web interface provides a full suite of intuitive
management tools at the network, node, and radio levels.
◗ Additional remote management options include SNMP, CLI over
Telnet or SSH, HTTP/HTTPS, DHCP, and BOOTP.
◗ Seamless interoperability with the Strix Access/One Network®
Indoor Wireless System (IWS).
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Strix OWS 3200
Wireless
◗ High-performance, multi-node and multi-radio mesh
architecture.
◗ Low latency and high throughput across multiple wireless
hops.
◗ Up to six 802.11a, b and g radios per node
(upgradeable), with power output up to 1W per radio.
◗ Full duplex mesh.
Security
◗ Supports all industry standard security protocols.
◗ RADIUS, WPA, EAP-MD5, EAPTLS, PEAP-TTLS
authentication.
◗ 802.11i (WPA2) with AES, WEP encryption.
◗ MAC address Access Control Lists on a per SSID basis.
◗ Full VPN support.
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Strix OWS 3200
System
◗ All nodes auto-discover and selfconfigure.
◗ Self-tuning and self-healing mesh for network optimization.
◗ User definable QoS with voice, video & data prioritization.
◗ Up to 16 BSSIDs per radio.
◗ Multiple SSIDs (per network and per node) and VLAN
tagging, with configurable security parameters on a perSSID basis.
◗ Session persistence for roaming, path optimization or
failover.
◗ Manager/One® Web interface provides a full suite of
intuitive management tools at the network, node, and radio
levels.
◗ Additional remote management options include SNMP, CLI
over Telnet or SSH, HTTP/HTTPS,DHCP, and BOOTP.
◗ Seamless interoperability with the Strix Access/One
Network® Indoor Wireless System (IWS).
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MWS 100 Features
 The Industry’s Highest-Power, Lowest Cost
Mesh Network Edge Mobile Wireless Node.
 High Speed Mobility, State-Of-The-Art Network
Persistance, Robust Delivery of Voice, Video
and Data.
 Defined Quality Of Service (QoS)
 Low Latency and High Throughput Across
Multiple Wireless Hops.
Strix Systems Mobile
Wireless System MWS100
 Dynamic Channel Assignment, Automatic
Power Control, Data Rate Selection for
Optimum RF Spectrum Efficiency.
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Network Planning and Management
Strix Manager/One
 Configuration, monitoring,
statistics, fine-tuning and customer
assistance control over the
wireless mesh network’s operation.
 http://www.strixsystems.com/produ
cts/manager.asp
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Strix Access/One
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Strix Business Model
• Philosophy
• Perspective
• Pricing
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Strix Philosophy
 Unlike traditional access points that offer limited
coverage within predefined hot spots, or single
radio/single RF mesh solutions that won’t scale,
Access/One Network OWS provisions wireless hot
zones that can extend over hundreds of square miles.
 Not an access point, but a fully integrated and coherent
wireless network infrastructure that delivers
intelligence, scalability, security and unrivaled
performance to the outdoor environment.
 Access/One Network OWS can be located, relocated,
scaled up or scaled down—all at minimal cost and with
virtually no disruption to services, providing a reliable
and truly flexible Network Without Wires®.
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Strix Perspective
 To create a superior mesh network the method used
must be different from that used for other typical
solutions. It must take a modular approach and have
dedicated bandwidth links that use a radio module to
perform the function of an AP “Client Connect” or a
Backhaul “Network Connect”. As such, there is a
design similarity between the ideal wireless mesh node
and a wired VLAN switch – both have interfaces for
user access and both have dedicated interfaces for
backhaul links
 Strix argues that a node that extends the reach of a
network can consist of three or more radio modules –
one for ingress traffic (backhaul), one for egress traffic
(backhaul) and another for wireless clients (user
access).
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Pricing
Strix

NextWave
Equivalent
MBW-1100F
OWS2400-10
(1x 2.4, 1x5.8 radio)
OWS2400-20
N/A
(2x 2.4, 2x5.8 radios)
OWS2400-30
N/A
(3x 2.4, 3x5.8 radios)
Mesh controller
N/A
(required)
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$3635 (wlanmall)
$4330 (wlanmall)
$4963 (wlanmall)
$1380 – 8 nodes (wlanmall)
$5686 – 48 nodes (wlanmall)
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Recent Wins
• Recent Deployments
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Recent Deployments
 April 2, 2008 - ReliaClear Chose Strix Systems Access/One. ReliaClear
Canada Inc. of Ontario,Canada has been selected as a Strix Gold Partner
for the distribution, resale and deployment of Strix mesh network systems
and professional services throughout Canada.
 Nov 20, 2007 - Groningen Unwired, a Strix premier partner, has deployed
Strix’s Access/One® Network Outdoor Systems (OWS) for the historic
Dutch city of Groningen.
 October 10, 2007 - Belgium's first city-wide wireless mesh network
deployment
 September 24, 2007 - KW Communications, has deployed Strix Systems
Access/One® Network Outdoor Wireless Systems (OWS) providing WiFi
access to the residents and businesses of Owensboro, KY.
 August 7, 2007 - The Falkirk Mining Company, a subsidiary of The North
American Coal Corp. the nation’s largest lignite coal producer, has
deployed Strix’s Access/One® Network Outdoor Wireless Systems
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SWOT
 Strengths
 Weakness
 Opportunity
 Threats
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Strengths
 Low Pricing
 Multiple radios, up to 6 per node
 Voice support
 QoS
 Mesh nodes support mesh backbones that utilize
dedicated radios operating in different spectrums from
the client access radios
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Weakness
 Bad RF Design
–Radios are not shielded, causing inter-radio interference,
significantly reducing performance
Radios do not
have proper
shielding
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Weakness
 Bad RF Design
–Reference from FCC filing, citing bad RF design:
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Weakness
 High Maintenance Costs
–Built in a plastic enclose, requiring a fan significantly reduces
MTBF, requiring yearly maintenance
Fan required to
circulate hot air
Plastic enclosure does
not provide proper
cooling
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Weakness
 High Installation Costs
–Cumbersome installation, requiring each antenna to be installed
separately, making some installations impossible
Installation is complex since most
antennas need to be wired to the
device
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Weakness
Mesh
 Full duplex is not the best solution where multiple
radios are available since:
–Most traffic on access network is on the downlink, so available
bandwidth and spectrum on the uplink are wasted
–Two radios can be better utilized in point-to-point configuration
rather than in full duplex mode
 Mesh requires an additional server, more costly
solution
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Weakness
 RF Solution
–Radios can only transmit at 26dBm
–Does not offer any advantage in antenna technologies
–Uses standard omni or directional antennas
–For proper access 90° or 120° antennas are required
–Requires cables which produce 2-3dB attenuation
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Weakness
 IP routing protocols for their path calculations
 Use indoor little stackable radio in the outdoor product,
just sticking it in a NEMA enclosure
 1W output per radio (smaller cell size than SkyCaptain)
 Small start-up with only $34M in funding to date. If
successful, probable acquisition target by Siemens
 Although has indoor wireless mesh product, has no
wired product portfolio
 Limited support capability and extremely limited
deployment scalability
 Few external mesh customers advertised – No big
names…
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NextWave Opportunity
 Set new agenda for High Performance, Cost-Effective WiFi
– Promote xRF benefits for delivering superior performance coverage
and economics.
 Leverage broader NextWave portfolio to provide:
– more complete broadband wireless solutions (unlicensed/licensed
networking solutions, spectrum, handsets, etc…)
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Threats
 Probable acquisition target by Siemens
 Prepared to price low to win business, BUT very few
external Mesh wins announced yet, but gaining some
momentum…
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Tactics - How To Compete
• Comparison
• Key Sales Positioning
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Comparison
Comparison
NextWave
Strix
Carrier grade outdoor solution
Indoor product in outdoor
enclosure
Metal, outdoor-by-design
Plastic, no heat induction
RF multi radio
design
Patented co-channel filtering
No shielding between radios
RF technology
Adaptive Beam Forming
Standard omni/directional
antenna
No moving parts
Fan would require yearly
maintanance
xRF noise mitigation
None
Design
Enclosure
Maintenance
Noise mitigation
Range/coverage
advantage
NextWave solution provides 30-100% more range and
capacity than any conventional Wi-Fi radio!
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Tactics - How to Compete
Key Sales Positioning
 xRF Beamforming technology
–Superior access with xRF Beamforming
 Lead with NextWave lower CAPEX and reduced
recurring OPEX costs
–Due to extended range and coverage and carrier-class design
 NextWave specifically designed for outdoor
environment
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Conclusion
• Summary
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Summary
 The Strix solution is an indoor solution housed in an outdoor
enclosure
 The Strix solution would require yearly maintenance due to moving
parts (fan).
 The poor RF design would generate co-radio interference even
within their enclosure, and to the extent that it appears on the FCC
report. Deploying the system without causing inter-radio
interference is close to impossible. It looks good on paper, but
won’t work in the real world.
 NextWave’s xRF beam forming technology provides a far superior
access technology and noise mitigation which is the real challenge
in unlicensed band Wi-Fi deployments.
 The NextWave solution has superior economics, with lower
CAPEX and OPEX due to extended range and coverage and
carrier-class design.
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Thank You!
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