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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (27294)	8/9/1999 10:03:00 PM
From: Mehitabel	Read Replies (1) \| Respond to of 77400

Ibexx-- good article in Informationweek online edition on the CSCO/KPMG deal. at informationweek.com some excerpts: "This could really help Cisco in its competition with Lucent and Nortel," says Michael Cristinziano, an analyst at Gerard Klauer Mattison. "As Cisco moves into the service provider space, it needs to provide its customers with systems integration partners. If they can buy influence with a systems integrator though a $1 billion investment, it is worth the money." "I think it's a very strong strategic move for Cisco," says Tim Luke, an analyst at Lehman Brothers. "It builds on an existing relation between KMPG and Cisco and enables Cisco to avoid having to own that lower-margin systems integration business." "It also reflects the competitive challenge Cisco faces from Lucent," Luke adds. "Cisco is trying to move into the telecom space, where Lucent's service and support are perceived as being stronger."

To: Ibexx who wrote (27294)	8/9/1999 10:58:00 PM
From: Mehitabel	Read Replies (1) \| Respond to of 77400

Ibexx, hi! Another article on the CSCO KPMG deal at forbes.com excerpts: >>It's a way for Cisco to deliver the services without having all the expense" of hiring, training and running a service business on its balance sheet, says Chris Stix, an analyst with SG Cowen Securities who rates Cisco a "strong buy." >>Cisco will make the investment in January 2000. Once it does, Cisco will own 20% of the new KPMG unit, which will then set up six Internet-based service centers, in Washington, D.C., Dallas, New York, Silicon Valley, Europe and Asia, Cisco spokesman Doug Wills says. >>The investment agreement also calls for Cisco to supply the KPMG unit with switches, routers and other hardware. Once the unit is fully operational, Stix predicts it could generate between $1.5 billion and $3 billion in annual sales.