Lantronix to Debut New LM4 AI-Powered Out-of-Band Management Platform at Cisco Live

Rhea-AI Summary

Lantronix (NASDAQ: LTRX) announced the debut of its new LM4 AI-powered Out-of-Band Management (OOBM) platform at Cisco Live in Amsterdam. The LM4 is the first console server specifically designed for Intermediate Distribution Frames and compact environments, targeting healthcare, finance, utilities, telecommunications, government, retail, and manufacturing sectors.

The platform provides automated network infrastructure recovery and monitoring through rules-based AI, offering up to four ports of serial console connections and support for 48 virtual ports. According to Dell'Oro Group, the serial console server market was valued at $320 million in 2024 and is projected to reach $391 million by 2026, growing at 7%.

The LM4 runs on LMOS software, compatible with LM83X and LM80 console servers, and is managed by Lantronix Control Center. The solution aims to standardize out-of-band management and implement AI-driven automation across network points, promising improved network resilience, easier management, and enhanced security.

Positive

• First-to-market console server specifically designed for IDFs and compact environments
• Market growth projection shows 7% increase from $320M (2024) to $391M (2026)
• Product expansion enhancing company's market position in OOBM solutions

Negative

• None.

Insights

Technology and Market Research Analyst

The launch of the LM4 platform marks a strategic move by Lantronix to capture an underserved segment of the $320 million serial console server market. This innovation addresses a important gap by making enterprise-grade out-of-band management accessible to smaller sites and IDFs, effectively expanding the total addressable market.

Three key aspects make this launch particularly significant for investors:

• The platform's AI-powered automation capabilities position Lantronix at the forefront of the industry's technological evolution, potentially commanding premium pricing and higher margins
• By targeting previously underserved smaller sites, Lantronix could capture significant market share in a segment that larger competitors have overlooked
• The standardization across the LM-Series product line creates opportunities for upselling and cross-selling, potentially increasing customer lifetime value and recurring revenue streams

With the market projected to reach $391 million by 2026, Lantronix's timing is optimal. The LM4's integration with existing Lantronix products and cloud services suggests a well-planned ecosystem strategy that could drive sustained growth through both hardware sales and potential recurring software revenue.

The focus on critical sectors like healthcare, finance and telecommunications provides multiple revenue streams and resilience against sector-specific downturns. The platform's compliance and cybersecurity features address growing regulatory requirements, potentially accelerating adoption in highly regulated industries.

LM4 Platform Brings Affordable Management Automation to IDFs and Small Sites

IRVINE, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for IoT solutions enabling AI Edge intelligence, will debut its new LM4 AI-powered Out-of-Band Management (OOBM) platform at Stand A10 during Cisco Live, February 10–14, 2025, at Amsterdam RAI. Lantronix’s LM4 is the industry’s first console server specifically designed, sized and priced for Intermediate Distribution Frames (IDFs) and compact environments such as ATMs, kiosks, and network aggregation points. Engineered for healthcare, finance, utilities, telecommunications, government, retail and manufacturing, the LM4 delivers enterprise-grade automation, compliance and cybersecurity capabilities, leveraging technology proven in military and financial networks.

"We’re excited to introduce the LM4 Out-of-Band Management platform, which enables our customers to leverage rules-based AI for secure, reliable and automated network infrastructure recovery and mitigation,” said Mathi Gurusamy, chief strategy officer at Lantronix. “At Lantronix, we are committed to enabling network management automation with innovative solutions that enable our customers to be more efficient, secure and bottom-line focused.”

Serial console servers represented a $320 million worldwide market in 2024 and are growing at a steady 7 percent rate to a projected $391 million in 2026, according to the Dell’Oro Group.

Out-of-Band Management Everywhere

An advanced out-of-band management platform, the small yet powerful LM4 provides access, continuous monitoring and automated remediation of issues as well as control of network infrastructure devices. Operational whether the network is up or down, the expert system uses rules-based AI to recover and mitigate network infrastructure automatically, including reliable and secure access to remote gear during an outage. With up to four ports of serial console connections for directly managing gear plus support for up to 48 virtual ports, the LM4’s compact size and affordable price enables network managers to utilize out-of-band everywhere, including many locations previously considered too small and numerous for advanced out-of-band management.

Running the powerful LMOS software, the LM4 brings the power of NOC-based software to the network’s edge to create a separate management plane in the rack with network infrastructure. With continuous monitoring and automated runbook responses, the LM4 can detect and solve issues before traditional NOC-based tools even know there is an issue. LMOS features a granular authorization model that integrates with existing access controls as well as automated change management functions, including the ability to store multiple config and OS files with local backups to enable automated rollback of failed config changes.

Standardize on Lantronix LM-Series Solutions for Enterprise-Grade OOB Management

The LM4 runs the same LMOS software as the LM83X and LM80 console servers, expanding the LM-Series console access options anywhere from 2–104 ports. The LM-Series is centrally managed by the Lantronix Control Center, which is available to run on-premises as a VM or hosted in the cloud. Lantronix’s LM-Series products allow customers to standardize their out-of-band management and deploy enterprise-grade functionality and AI-driven automation at all points in the network. The result is a more resilient network that’s easier to manage with fewer issues, reduced support truck rolls and stronger security and compliance.

Lantronix is the go-to source for innovative out-of-band solutions, providing a suite of reliable, secure and easy-to-deploy platforms, all supported by its exceptional service team.

Also being shown at Cisco Live are:

Out-of-Band Management Solutions

• LM83X, delivering AI-driven out-of-band management of 8–104 devices over serial console connections in a scalable and robust console server with dual power inputs. 
• LM80, providing a fixed 8-port serial AI-driven out-of-band management solution that can automate a majority of routine IT maintenance and recovery tasks quickly and error-free.
• Lantronix Control Center, a single pane of glass for managing all LM-series devices for secure remote access as well as for automating management of each of the connected network infrastructure devices. It is a single source for Authorization-Authentication-Accounting (AAA) controls, creating monitoring and action rules without scripting, centrally archiving both monitored device operating system and configuration files and compliance reporting.
  

Reliable Gateways and Console Servers With Trusted Performance

• EMG 8500, Lantronix’s Edge Management Gateway that provides secure remote access for branch offices, remote locations, retail stores or anywhere an offsite network device gateway is needed and where space is limited.
• SLC 8000: Advanced Console Manager, providing secure access to IT equipment with 8–48 ports of RS-232 and USB console connections.
• G520 Series, Lantronix’s next-generation IoT cellular LTE CAT 4G and 5G gateway designed for industrial applications, including pre-enabled Percepxion™ Edge Solution Platform to increase operational efficiency and prevent cyber-attacks. 
• X300 Series, a Cellular Compact IoT Gateway Solution that includes Lantronix’s IoT gateway hardware and centralized device management, cellular data, enhanced security and expert technical support in an all-in-one package.

Expert Technical Support

• LEVEL Technical Services, providing dedicated technical support experts to assist with implementing out-of-band deployments and limited lifetime equipment warranties. 
  

About Lantronix

Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

For more information, visit the Lantronix website.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements related to Lantronix leadership. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to the COVID-19 pandemic or other outbreaks, wars and recent tensions in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report, as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

Lantronix Media Contact:
Gail Kathryn Miller
Corporate Marketing &
Communications Manager
media@lantronix.com

Lantronix Analyst and Investor Contact:
investors@lantronix.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bce840fa-a24a-413e-96ca-23443e7d1d6b

FAQ

What is the market size for serial console servers in 2024 and its growth projection for LTRX?

According to Dell'Oro Group, the serial console server market was $320 million in 2024 and is expected to grow 7% to reach $391 million by 2026.

What are the key features of Lantronix's new LM4 OOBM platform?

The LM4 features up to 4 ports of serial console connections, supports 48 virtual ports, uses rules-based AI for automated network recovery, and runs on LMOS software for continuous monitoring and automated remediation.

Which industries is the Lantronix LM4 OOBM platform targeting?

The LM4 platform is engineered for healthcare, finance, utilities, telecommunications, government, retail, and manufacturing sectors.

How does the LM4 integrate with other Lantronix OOBM solutions?

The LM4 runs the same LMOS software as the LM83X and LM80 console servers and is centrally managed by the Lantronix Control Center, allowing standardization of out-of-band management across networks.