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

To: Curtis E. Bemis who wrote (27932)	8/26/1999 9:46:00 AM
From: Frank A. Coluccio	Read Replies (2) \| Respond to of 77400

Curtis, I'm not twisting anything. CSCO spent close to $7 Billion on a company whose forte is in optical TDM and STDM devices. And as you note, there are some good reasons to continue to address this space. But they are addressing this backwards compatible model in a very large [and I would argue, disproportionate] way, given the imminence of other optical alternatives, some of which will be addressed by the lesser-valued, and also-acquired, Monterey. But it really does speak to motivation, though. Explan: I believe that on some not so subtle level the traditional router companies (CSCO and NT, specificially... but all of them, in effect) would prefer to see the SONET model sustained for a much longer period, since the overwhelming share of their current and foreseeable revenues derives from selling routers and switches which meet SONET/TDM interface specifications. Do you think it any different? Regards, Frank Coluccio