[ALA, etc.]
,,,As you know, I own both Aware and Amati and even though the majority is in Aware, I would have been thrilled if Amati had won. But instead the Alcatel announcement leaves me with a slightly sickish feeling.>>>
Norman --
I felt the same way initially and it's taken me most of the day to get a handle on the announcement. The press release says this is a "broad pact to develop networking equipment to meet the growing demand to integrate the Internet with public telecommunications networks." The focus is to "develop products for the network backbones used by phone carriers to handle large volumes of customer traffic. . . and network access systems."
Cisco's router technology known as tag switching will be used over Alcatel's ATM networks. Cisco, in turn, "will integrate and market Alcatel's ADSL modems, chips and products in its own systems."
John Chambers made it clear in the conference call that the agreement was not exclusive. "You can only strategically partner with so many players," he said. [Looking at products in 10 to 12 areas:] "We will work with key service profiders in each."
When asked about permanent partnerships, Chambers said time was of the essence and this arrangement was quicker. He went on to say more announcements were coming. "Alcatel is one of the first. . . . There will be a steady stream of others."
The primary thrust is the backbone. This isn't Amati's domain. With ADSL, which is, by licensing Alcatel's early product, Cisco has access to a chip that's available now. There were two other possibilities --- AWRE/ADI's DMT and Paradyne's CAP. Given your druthers at this stage of the game, which would you prefer?
I'm glad Cisco's in a hurry. And given the fact Amati's chips aren't available, I'm glad they've chosen Alcatel's.
BTW, Alcatel told us a week or so ago they would have two large announcements. One down; one to go. The nest will be a multi-national carrier. Anyone know who it'll be?
Cheers!
Pat |
