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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Dealer who wrote (5075)10/2/2000 9:36:46 PM
From: Dealer  Read Replies (2) of 65232
 
CSCO--Cisco Rolling Up Sleeves With Optical Networking Plant
By Scott Moritz
Senior Writer
10/2/00 8:01 PM ET

For years, Cisco (CSCO:Nasdaq - news) has made the Internet work while mostly staying out of the messy business of manufacturing. But that's about to change.

Tuesday, the networking giant will stage the grand opening of a refurbished Digital Equipment factory in Salem, N.H. In doing so, Cisco should shed some light on its widely awaited optical networking strategy. Though the race to provide equipment for the next-generation Internet is far from over and Cisco remains a formidable foe, observers say the company's bits-and-pieces approach to optical networking has allowed rival Nortel (NT:NYSE - news) to sprint to an early lead.

Now, in opening the 674,000 square-foot plant, Cisco is making a bold shift to an in-house manufacturing strategy, allowing it to consolidate its optical efforts under one roof, say analysts. But with Nortel dwarfing Cisco in optical sales and the industry evolving rapidly, it's clear the networking giant must show progress quickly, particularly in key technologies.
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