Motorola invests in Trapeze Networks

The wireless LAN switch and management market, which in the last eight months has witnessed Cisco Systems’ acquisition of Airespace and Proxim’s bankruptcy and subsequent acquisition by Terabeam, is under going further shake-up as mobile vendor giant Motorola has invested an undisclosed sum in Trapeze Networks.

Jim Vogt, president and CEO of Trapeze Networks, said Motorola Chief Strategy Officer Rich Nottenburg initiated discussions with Trapeze in September 2004, months before Cisco bought Airespace in January 2005.

“He was visiting Silicon Valley, looking at different opportunities and companies for Motorola to work with,” Vogt said. “Though it’s Motorola Ventures that is making the investment, this deal is very strategic to what Motorola is doing in seamless mobility and wireless mesh networks.

The investment is part of Trapeze’s C financing round, which opened in February and is due to close soon.

In the long term, Trapeze is looking to gain from exposure to Motorola’s traditional carrier customer base, but Vogt also acknowledged that carriers are still trying to figure out the business model for seamless mobility. “It’s turbulent right now,” he said. “Carriers are dealing with the question, ‘Is this [Wi-Fi/mobile roaming] a threat to my business or an opportunity?”