cessary functionality such as network management, diagnostics, configuration, or different interfaces, as well as spend more time and money on the business management side of the equation, pursuing alliances and customer relations. Network processors are bound to revolutionize the industry by commoditizing the design of network devices, creating a phenomenon that is almost reminiscent of the PC industry in the 1980s. NETWORK PROCESSORS: CATEGORIES During the last few years, since its emergence, the network processors market has appeared to be a very "fizzy" environment. New startups are entering at a relentless pace, and major semiconductor houses as well as network device manufacturers are realizing that unless they participate in this process, they will miss the train of opportunity. Several startups have already left the field as the first casualties of a coming major shakeout. However, the consolidation process that has been taking place has started to show some underlying characteristics in this industry. Two major underlying classes of network processor chips can be identified within which essentially all network processor products can be categorized: platform network processors and peripheral network processors. Platform network processors are usually complete chipsets that major vendors have designed to do the following: Handle all functions related to packet processing. Minimize the number of components needed and therefore the direct hardware cost in the final design. Optimize the trade-offs between performance and flexibility. Facilitate an accelerated and integrated software development cycle. Capture the largest possible number of design-wins by positioning themselves as the ideal source for one-stop shopping for the network gear designers. Attract third-party hardware and software players that will allow the build-up of an intertwined com- munity that facilitates the easy and timely development of several modular products that share the common characteristic of being based on the vendor's network pr