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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: Techplayer who wrote (26461)6/21/1999 11:46:00 AM
From: The Phoenix  Read Replies (1) of 77400
 
brain,

I respect your views however the key reason convergence on IP hasn't taken off in the past is due to the QoS vaccum. If IP was delivering QoS 5 years ago ATM would not be where it is today. Believe me, it pains me to say this since my roots are in ATM. I guess you could call me a convert.

If LU isn't shortsighted with their purchases of Batik and Zetax then tell me what these companies bring to LU other than overhead. Their products are 80% overlap. I believe that the purchases of these companies are directly linked to the win at Telmar. That is why I consider this purchase shortsighted.

Finally, LU not wanting into the enterprise...due to diminishing margins. This is laughable for two reasons. First Cisco is enjoying higher margins than LU across the company....LU's success in Cisco traditional enterprise market would serve to increase their margins..unless of course they discount to win the business. Second, not taking the fight to CSCO allows CSCO to remain confortable in their core business while they increase their revenues by taking away business from LU/ASND in the SP's. This is a stratgic faux paux on LU's part IMO. Even IF margins were tight the way to win the war is to take the battle to CSCO ...you may take a short term hit (which I still doubt) but in the long run you take CSCO's legs out. Instead it is CSCO that's taking the battle to LU/ASND's turf. IMO this is why CSCO (in part) CSCO is enjoying a higher PE.

OG
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