Re: "Perhaps you know more than most of us."
Gary, I believe each person may offer something very unique, so by working together, the knowledge may be much more. I believe in friendly debates, which can bring forward new ideas and shed light on information, to the shared benefit of investors.
Re: "What makes you think that: Intel will use Microsoft's OS for their networking products?"
Microsoft's expansive approach. But, good point, which leads to another idea/question: what are the pros/cons to Intel using someone else's OS, or partnering with even Cisco on their IOS? On the other hand, the OS is a pivotal point of control.
Re: "What makes you think that: Intel will move further upstream in networking?"
Money and opportunity.
Re: "What makes you think that: - Intel has the service, support and sale organization to compete in networking?
Their experience in networking applications provides them with some of the channel into the buyers. This leads to another question: what is the possibility of Cisco focusing only on its IOS, sales, and service, and leaving the hardware to others, like Intel, where the value inside of the hardware would be the processor?
RE: "What makes you think that: - LU will use Microsoft OS in the carrier market?"
I don't think LU will use Microsoft's OS here, which is why I did not type "Microsoft+LU."
RE: "I have many more questions"
Since Intel is increasing its focus on communication products, possibly other people would like to read your comments on comms too. I would like to read more posts on communications on the Intel thread. It would be nice if you made more posts on comms. I appreciate reading them.
Re: "Micrsoft's RAS has not been successful."
No one wants to reboot their router.
Re: "Remember - they are used to software margins!"
Microsoft already sells into some lower margin markets, like the embedded market via MS-CE. Also, Microsoft has a large consumer division which has to deal with lower margins in some product-lines.
In general, for any high-volume software company, the biggest margin eaters from the standpoint of COGs are the manuals, and fortunately (from the standpoint of margins) a lot of those are now on CDs.
Re: "Intel has a networking chip and a few low end networking products. Of the $1B in revenues they generate from networking 80% is from NIC's and hubs. Another 10% is from low end ethernet switches."
About 2 years ago, Intel had $0B in these markets. Now they have $1B+ in NICs and hubs. Intel has demonstrated agility in growing quite quickly.
Re: "- Intel's IXA is targeted at companies building communications products and the goal is to reduce the cost of these products thereby freeing up dollars for PC churn thus more pentiums."
Good thought, why not expand more?
Re: "- The IXA provides foundation technologies. Most of what Cisco provides will stil be required."
For how long? The reasons are...
Re: "- Intel has not penetrated the network processing market yet. Your assumption that they will is a leap of faith given Cisco's recent alliance with IBM. Hey, why not a CSCO/IBM/SUNW world????"
Are you more of a Cisco investor than an Intel investor?
Re: "The point is that LU, NT, and CSCO will not get squeezed out. Nor will IBM, INTC, or TI. Nor will MSFT, SUNW, or AOL/NSCP."
I wasn't speaking about the others, but I appreciate your thoughts on them. Regarding Cisco's future, maybe I'm not quite as pollyannaish in my questions because I have learned to grow cautious about a company whose opportunity could potentially become the middle of a market pyramid, where its competitors could exist on the top and at bottom, and could possibly squeeze it out. The competitor whose at the bottom, where volume is larger, has a market advantage, and they could conceptually creep up and encroach into the market space of the company in the middle.
Would you like to discuss more technical reasons for why you think Cisco won't get squeezed out in 10 years between Intel and LU? I would find that interesting. Maybe someone else might too?
Regards,
Amy J |
