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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (13134)	8/31/1999 1:51:00 PM
From: zbyslaw owczarczyk	Read Replies (2) \| Respond to of 18016

Pat, re:IBM/CSCO This is what I think: IBM also said it will move its networking equipment customers to Cisco. [What exactly does this mean?] IBM will service CSCO customers.Such deal can happen to any networking vendor and is good for IBM The $2 billion covers the supply of components, including chips and switches, to Cisco, according to Kevin Reardon, director of strategy at IBM's technology group. The services agreement is separate, he said. Communications chips form the central nervous system of equipment like routers and switches. Routers act as traffic cops, sending data only where it is authorized to go. [Does this mean we'll see a separate services announcement?] not separate announcement but it is separate agreement This push, like major strategic initiatives from Big Blue over the last 12 months, is coming from IBM's Technology Group, which sells disk drives, displays, and a variety of chips to customers like Dell Computer, Compaq Computer, Acer, and EMC. [So, IBM's selling these kinds of products to CSCO?] IBM is supllying chips and ACICS to many vendors incluing NN. As part of the agreement IBM will move its router and switching customers to Cisco equipment, according to Reardon. "They will migrate from IBM to Cisco," he said. [Is this a major shift for IBM? Whose routers and switches were they using before? Since IBM has an agreement with ATT for its Global Managed Services, wouldn't T have to change vendors to affect NN?] remember that CSCO is a big player in enterprise market and many corporations which are serves by IBM will use CSCO routers and switches for enterprise. THis has nothing to do with IBM recovery network or other netwotk build by ATT solution( core and VPN). In fact Cisco could actually be accessing NN's ATM via ATT's Global Managed Network! ATT has bought from IBM their network not services!!! Zbyslaw

To: pat mudge who wrote (13134)	8/31/1999 3:56:00 PM
From: Ian@SI	Respond to of 18016

Pat, I'm several years out of date re IBM products, but I'll give your questions a shot. IBM also said it will move its networking equipment customers to Cisco. [What exactly does this mean?] IBM sells mainframe [large, powerful] computers. To get data in and out of these computers from remote locations, it also builds and sells a variety of network equipment - primarily its SNA family of products, but I believe they also dabbled at routers, bridges, etc. The statement implies that IBM will: 1. provide CSCO products to meet its networking equipment customer needs; or, 2. have its customers deal with CSCO for their network equipment needs. The 2nd option is so foreign to IBM very being or culture, that the only plausible interpretation that I can come up with is that IBM's products were crap, they've finally accepted that they can't move fast enough to satisfy the marketplace; and have an agreement with the leader to re-market its products to their networking equipment customers. Ian.