Microsoft Launches Broadband Hardware Line

At DEMOmobile in southern California, Microsoft on Thursday took the wraps off its much-anticipated line of broadband network hardware designed for home users. Rumors of Microsoft's plans to enter the home network market began last February, when the company invited a select group to test a beta version of its wireless base station.

The Microsoft Broadband Networking products include five devices for wired networks and three for wireless, along with two wireless kits for desktops and laptops. All wireless products, which utilize Intersil's PRISM chipset, include 128-bit WEP and the Microsoft Broadband Base Station features NAT support and a built-in hardware firewall.

Microsoft has included a Setup Wizard that can automatically detect devices and settings, and provides a simple interface for configuring a base station. Network monitoring software is also bundled with each product to track performance and diagnose problems within a network.

As the company's first foray into networking hardware, Microsoft will undoubtedly face stiff competition from established manufacturers. Linksys, D-Link, and Netgear have saturated the home broadband market with low-cost products, but Microsoft feels it can use software to make networking less of a headache for the average user.

"The process of setting up a wireless network has simply been too complex for the people looking to share their broadband Internet connection," said Microsoft's corporate vice president for the Home Products Division, Lisa Brummel. "Our primary goal in creating these products was to help enable the scenarios that people see as important to their lives.

If successful, Microsoft Broadband Networking could provide an additional boost to Redmond's already successful hardware division. Microsoft's hardware group garnered $569 million in hardware sales last year, earning between $2 million to $3 million per employee, according to a Red Herring report.

Microsoft Broadband Networking devices may be purchased online, and will be sold in retail chains such as Best Buy and CompUSA. All products include a two-year warranty and toll-free technical support 24 hours a day.

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