Ted, not quite sure about Cisco canceling a big optical switch product being a good thing. Little I've read, they may be stopping development or productization of the one they got when they bought Monterey, and going with an in-house developed one. Don't quote me on that, I think I got that strictly from the Cisco thread (well, if the right guy there said it, it's better than CNBC as a source).
Whatever it was, though, that lifted some funk after the close, we'll take it.
Tony, why it's a good thing for CSCO is because they were losing $$$ on the router. Better to cut your losses now rather than later.....inspite of how much they paid for Monterey. IN the recent past, there also have been some comments that their product line may be getting too big.
Why it had impact beyond CSCO was because it was good news for two competitors, SCMR and CIEN. Right now there are too many competitors in the biz...one less one, esp. one as big as CSCO...will help shore up prices. At least that's the conjecture.
But beyond CSCO and Dell, there also was good news from two software companies who reaffirmed that their earnings were on track for this quarter and that biz was generally good.
The combination was all it took to get AH moving. <g>
ted |
