Gary,
In response to your questions:
1. The new broadband division, under Dan Stanzione (who I might add is one of the most impressive managers you'd ever want to meet) will combine Ascend's business with ALL of LU's data businesses, Optical, Communications software, and Bell Labs. These are Lucent's fastest growing businesses, together about the same size as Cisco. This organization is very well thought out and automatically will give Ascend alot of status within the LU organization. Bear in mind that sales is organized by customer market with specialized marketing overlays, so its not as though customers have separate LU organizations calling on them as distinct entities.
2. Mory has been getting bashed on this thread, but if you have the chance to talk to him one-on-one he is shockingly articulate. His difficulties reading from prepared statements do not translate into problems earning the respect of the CEOs he talks to regularly. That said, it is natural that he would leave after overseeing the transition. LU has a glut of top-notch management talent (not unlike CSCO) and a rich man like Mory (I believe he had options for nearly 2 million shares) is probably uninterested in reporting to someone else. I would also expect Ashby to go, and maybe Jeannette Symons (who would be a real loss, she is a little different, but she is a true visionary). Everyone else seems to be raring to go.
3.This is CSCO philosophy, not the word from god. You'd think that all of Cisco's employees were sitting within a mile of Tasman road. What these companies do is provide technology to manage across large distances, their customers manage to use it effectively, so I'm sure LU can too - In this day and age you have to have locations wherever you can find the talent. And as has been aptly pointed out, the majority of Ascend employees are in MA. Bottom line - not a problem for a company as well managed as LU
4.I expect sales force integration to happen quickly. LU swarms carrier accounts - Why do you think CSCO is hiring so many sales people for the carrier market? It is emulating the high touch LU model. I chuckle a little to read the people on the CSCO thread saying "LU can never emulate the CSCO sales model" it is really the other way around, at least in the carrier market. I have talked to four major carrier customers since the deal and they are very happy about this deal. McGinn said one of the major drivers of the deal was the advice of customers and I believe it.
5.I know LU was once a part of AT&T. It is easy to throw stones, but LU does not feel like an RBOC. There are alot of top-notch people - the only other companies I can think of that compare are CSCO and MSFT. Believe it or not, LU can get things done quickly. I do not believe that ASND's innovativeness will be impaired at all by LU, rather I think that having the extraordinary resources of Bell Labs will actually accelerate things and allow more innovation to come to market faster.
As holders of both LU and ASND we are ecstatic about this marriage. BTW both ASND and LU will report blow out earnings next week. |
