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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.74

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To: Eric L who wrote (31172)	1/9/2000 1:56:00 AM
From: Zoltan!	Read Replies (1) of 77400

Sun and Cisco team on home networking: Dow Jones Newswires -- January 7, 2000 Sun Microsystems CEO McNealy Touts Home Networking By MARK BOSLET LAS VEGAS -- Sun Microsystems Inc. (SUNW) Chief Executive Scott McNealy once again sketched out his vision for a networked world, focusing his keynote address at the Consumer Electronics Show on the networked home of tomorrow. McNealy also warned consumer electronics companies that their businesses will face tough new pressures in coming years. "There's a new (business) model that's going to happen where you lease" instead of sell appliances to consumers and rely on this service-oriented subscription revenue, he said. Venture capitalists are pumping more than $1 billion a month into Silicon Valley and into companies building businesses that rely on free consumer giveaways, much like the cellular phones and set-top boxes of today, he said. During his address, McNealy demonstrated various prototypes for the home of tomorrow. In one instance, he displayed a dishwasher running Sun's Java, which when connected to the network, can diagnose its own malfunctions. "To bet against the network is a bad bet," McNealy said. It will be broadband and it will be reliable, he added. Sun expects to field-test some of its home networking technologies this summer in collaboration with Cisco Systems Inc. (CSCO) and GTE Corp. (GTE). interactive.wsj.com

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