If CSCO is upbeat on 3rd grade products from Stratacom, what First grade products company ASND should think. beat them quietly.
Dow Jones Newswires -- August 7, 1998
Cisco Upbeat On Stratacom, Looks Towards New
Competition
By Mark Boslet
SANTA CLARA, Calif. (Dow Jones)--Cisco Systems Inc. (CSCO) gave an upbeat outlook toward growth at its Stratacom division, as it continued shaping its marketing messaging for the coming competition with telecommunications-equipment companies.
Speaking at the Networking Connections Conference here, Chief Executive John Chambers said he was optimistic that growth at Stratacom would be faster this year than the 50% growth of the past year. Cisco's fiscal year ends in July.
Stratacom has new products, and service providers may latch on to the "end-to-end" concept of seeking a full range of products from a single provider, Chambers said.
Alfred Tobia, a Nationsbanc Montgomery Securities analyst, said one key new product is the TGX 8750, an ATM switch the company introduced in June.
Preparing for competition with telecom-equipment companies, Cisco will define itself as synonymous with the Internet, Chambers said. "The Internet is driving the new economy," he said.
Cisco will also seek to remain agile - and to keep employee productivity high - as new opportunities emerge in the coming convergence of voice and data networks, he said.
Chambers went on to say Wall Street assumes the large producers of equipment for today's voice networks, such as Lucent Technologies Inc. (LU), will acquire companies with data technology and make the acquisitions work. But the majority of acquisitions fail, he said.
(He keeps repeating this, I wonder how CSCO grew, most of their products are from acquired companies for example CRESCENDO Comm contributes more than a billion. ALL CSCO DOES IS ACQUIRE THE COMPANIES SMALL TO BIG, Where did he get the Stratacom BUG from, by acquiring, can anyone give credibility to this man. He is full of Shit.. making good money for stockholders though, no complains. But the way he puts down others is unbelievable. it will haunt him badly one day.. My own two cents about Chambers monotonous prayer and dream that all the acquisitions by competition fail. ) ASND will teach him a lesson in the TELCO markets.
Farrokh Billimoria, an analyst at Hambrech & Quist, said the company is obviously working hard to position itself against competition from telecommunications-equipment providers interested in entering the data market, such as Northern Telecom Ltd. (NT), which plans to purchase Bay Networks Inc. (BAY). This is Cisco on the offense, Billamoria said.
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