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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: Dennis R. Duke who wrote (11678)1/15/1999 3:49:00 PM
From: Jack Colton  Read Replies (4) of 42804
 
Dennis.. it works very well. Back when I bought the switch for my office, I compared The LIST price of the NBase equipment to our DISCOUNTED price of BayNetworks Accelar Switch configured the same way.

The LIST price of NBase was 40% of the DISCOUNTED Bay price.

That means the LIST of NBase was probably 30% or less of the Bay LIST price. I think the customer in this case was getting a 25% discount on his equipment. But this was a real life comparison.

So, since IT budgets are being cut all across America, as I see right now, and as the IT managers get a little more PRICE conscious, our NBase sales will sky rocket! In the past all they cared about was the name behind the equipment....

In almost all of, - but 5 in particular - of our current accounts, the company has announced LAYOFFS, and the IT budgets are under constraint. Even our least price conscious customers are cutting back their network expansion plans. A typical example is a campus with 4 buildings. Right now, the 3 remotes are wired back to the main building with 100MB fiber. We had in the budget, and planned on upgrading the 100MB fiber to dual GE with redundancy and multi-link trunking. We now have to scale back to a single GE to each site.

That may not look like much on the surface, but it cut the cost of the required equipment by 60%. We sacrifice redundancy and bandwidth. But, in the FIRST COST CUTTING MOVE EVER at this account, we have redesigned the network accordingly.

jc
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