It looks to be like Packet Engines is focused almost exclusively on Gigabit Ethernet, whereas Xylan is in that and much more. Also, consider the following from the press release:
"Packet Engines' product lines will also complement Alcatel's current data and enterprise offering with high-end routers and Gigabit Ethernet LAN switches."
Note the word "complement". This might put a little bit of a crimp in Xylan's sales to ALA, but certainly won't eliminate them completely.
IMO, this raises the stakes for the other communications equipment makers to get off the dime if they ARE going to pick up data networking companies such as Xylan. This announcement is not much of a surprise to me, since most of the acquisitions in this industry seem to be newer, smaller, often privately-held companies that biggies, although those occur from time to time, too. Everyone is waiting with bated breath to see what LU does and I have always believed that it will be a small player rather than an ASND or the likes. Xylan is a possibility but there are many others, too.
Rich |
