Another take..
Forbes.com
Focus On The Forbes 500s: Cisco And Corning
By Matthew Herper
Cisco Systems routers direct about 80% of Internet traffic. Soon the Net will use light pulses, not slower-moving electric ones, to transmit information.
So it's only natural that Cisco (Nasdaq: CSCO - news) would want to get together with Corning (NYSE: GLW - news), the company that invented fiber-optic cable, the nerves of modern communications.
The two companies announced an alliance yesterday, aiming to speed the deployment of optical networks. The deal will allow San Jose, Calif.'s Cisco to exploit Corning's optical fiber and photonics know-how. That will make Cisco a large customer for Corning, based in Corning, N.Y.
``Corning's expertise in optical fiber and photonic products, coupled with Cisco's expertise in building IP-based networks, is a powerful combination that will enable service providers to deliver rich new services,'' said Mike Volpi, senior vice president and chief strategy officer at Cisco, in a statement.
More than two weeks ago, Corning, which had 1999 revenue of $4.4 billion, announced that it would be buying Cisco's 10% stake in the optical components division of Italy's Pirelli. Some have commented that this hinted at the new, larger deal.
Cisco had annual revenue of $19 billion this year, up from $2.2 billion only 5 years ago. The company employs more than 34,000 people and has acquired more than $10 billion worth of other companies this year. Yesterday Cisco also announced it's acquiring Sydney, Australia's Radiata Systems for $295 million |
