Nihil, re Cisco being interested in Nortel. I think Chambers has said several times, whenever a large network company has been on the block, that it is not in accord with Cisco's growth strategy to buy such beasts. They much prefer the small, easily digestible variety, such as the two announced last week. Two other reasons to give Nortel a very wide berth:
1. Cisco's own internal growth plans continue to be extremely aggressive, from all outward appearances. They have expressed interest in a big piece of land called Coyote Valley in South San Jose (actually seems like it's in another county because San Jose is so huge in area, and it's in the southernmost part). This for a 2nd campus, I think, looks like bigger than the current one. Someone correct me if I'm wrong, but I don't think they'd give up their current "North San Jose" campuses. The thing is, you don't plan on this kind of awesome growing, and buy a big company like Nortel at the same time. Seems that would reek of Compaqian style behavior.
2. With Nortel, you also get Bay Networks. Cisco obviously could have done that one before.
Tony |
