To: MMW who wrote (8326 ) 6/26/1999 4:52:00 AM From: bill c. Read Replies (1) | Respond to
MMW,What changed mind from going public, to being bought out? -In the market Nexabit plays in (super switches at the core of the network), you need the help of someone like LU to provide sales, support, infrastructure, and credibility with the carriers to provide very quick penetration, which is exactly what Nexabit is after. -$900 M was our breaking point where the financial reward, in terms of success, as we go with a bigger player like LU, will become comparable if not better than going with a high IPO. - Going with the IPO, over a sustained period, might not be able to sustain it due to lower market share Market share? How will it change? -Expect a rapid deployment Reaction to competitor, (JNPR)Juniper's recent success with going public: -It's great validation for the market out there. How big are you expecting market to get? -The bandwidth is growing very rapidly. -It (bandwidth) is at the core of network, which is analogous to having the operating system, for example, in a PC. -It is imperative for a big player to own a substantial part of the core, because the amount of impact it has selling out of that core is huge. It is that broader market space that bigger companies are after. Biggest Oppurtunity????? -Clearly US to begin with -Europe market is red hot -Japan is beginning to pick up Then in 4-18 months, look into other markets Biggest growth in terms of internet usage? -definitely the US biocognizance.com .... Citing forecasts from San Francisco research firm RHK that the core switch and router market will reach $5.4 billion by 2003, Mr. Chatter argues that "the one who's going to win this war is the one who will have core optical technology, core ATM technology, and core IP technology ... and the capability to integrate all of it." redherring.com
