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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.030.0%Dec 24 12:59 PM EST

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To: Mighty Mizzou who wrote (26413)6/19/1999 3:38:00 PM
From: ioioioi  Read Replies (1) of 77400
 
Hmm,
The toughest problem being faced by all silicon valley companies today:

1. Not enough talanted employees.
2. Too many open req's - too few bodies to fill them.

Come on, if you can look a little deeper, Cisco is not buying superior technology alone. Its buying superior talent and good technology, which it can leverage with its better marketing and sales muscle.

The attrition rate at Cisco (for acquired companies) is looooooooow!

So, if you had a choice to spend X amount of money and get good talent, spend another Y to train them and get the chemistry working right, OR
Just pay Z (less than X+Y) to buy the same talent without the headache of either training them or getting them to work together,

WHICH would you prefer.

There's more to these acquisitions than meets the eye. Some of them will fail no doubt, but getting a Mario Mazzola or a Judith Estrin is worth paying 10 times a premium for a "SINGLE SWITCH" as you put it.
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