How is this for confirmation of Howard Bubb's and our vision of the near future?
Internet Growth Puts New Demands On IS
(10/09/97; 11:50 a.m. EDT)
By Jeff Sweat, InformationWeek <Picture>ATLANTA -- Rapid Internet growth requires IS managers to consider new technologies, network structures, and recruiting strategies, Cisco chief technology officer Edward Kozel said Thursday in a keynote address at NetWorld+Interop 97, held here.
As data traffic climbs -- with data expected to surpass voice traffic just after the millennium -- voice, data, and video transmission are likely to merge, Kozel said. "Voice over IP will be the most significant new application to come to the Internet in the near future," he said. "If we can add voice to our data structure, it adds to our utility without adding to our support costs."
Kozel said though the quality of voice over IP is now on par with cellular networks, Cisco and other companies are working on enhancing the technology.
The Internet also will change how network administrators design their networks, in part because of uneven bandwidth demands. "If we live in the [Internet] world of asymmetrical bandwidth positioning, this fundamentally destroys how we build these networks today," he said, adding that the Internet ideal is not fully symmetrical networks.
Hampering the Internet's growth, he said, is a lack of skill in the IT industry to deploy the technology, because of insufficient training and exposure to the technology for high school and college students. Corporations should attempt to turn that situation around, Kozel said.
"We shouldn't fool ourselves. We all know we're living in a constrained talent pool already. We have to pay attention to tomorrow's talent or we're all going to choke.
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To those who are interested, I'm beginning to dollar cost average into Ascend Communications. I'm using a $50 18 month price target on $2.00 of calendar 1999 earnings per share and a target P/E of 25X for 50% appreciation potential. I have followed this stock for 3 years and this is my first entry point. I will be buying more tomorrow. As the artical above states " we are short of good networkers" and ASND is a perfect way to play the infrastructure build in the years ahead.
Caution: This stock may experience tax selling in q4 as a lot of people have been hurt. It is down from $80. I'm personally rounding out my position tomorrow.
Happy Investing,
Jay
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