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To: fumble who wrote (13145)	8/31/1999 7:44:00 PM
From: zbyslaw owczarczyk	Respond to of 18016

TELECOMMUNICATIONS EQUIPMENT MARKET ``UNDERGOING TREMENDOUS Fundamental Change,' New Sutro Research Report Points Out Business Editors & Telecommunications Writers SAN FRANCISCO--(BUSINESS WIRE)--Aug. 31, 1999--"Fueled primarily by continued growth of the Internet and continued deregulation," the market for telecommunications equipment "is undergoing tremendous fundamental change," according to a newly issued research report from Sutro & Co. This rapid growth "has rendered some traditional telecommunications equipment obsolete," Sutro asserts in its Quarterly Telecommunications Review. Although telecommunications carriers are beginning to adopt next- generation technologies, they have more than $1 trillion invested in existing infrastructure, the Sutro report notes. Thus "the transition to new-generation networks will be a gradual migration occurring in multiple stages rather than a replacement of existing infrastructure," the report predicts. The Sutro report was prepared by Patrick Houghton, senior vice president and head of the firm's Telecommunications Equity Research Group, and analyst Natarajan Subrahmanyan. The Sutro analysts estimate that the total, worldwide market for telecommunications equipment is about $200 billion a year. This market includes six types of telecommunications products: switches, wireless equipment, transport and transmission equipment, voice-processing equipment and data-communications products. The worldwide market for switching equipment, which includes local exchange switches and tandem switches, is currently about $40 billion a year, and each segment is growing by about 5 percent to 10 percent annually, according to the Sutro report. Sales of wireless equipment, which includes wireless switches, are currently running at about $50 billion and are growing by 20 percent to 25 percent a year, the Sutro analysts estimate. The global market for transport and transmission equipment is now about $20 billion and is growing about 25 percent to 30 percent annually, analysts Houghton and Subrahmanyan estimate. Sales of voice-processing equipment are currently running at about $20 billion annually, according to the Sutro analysts. The data- communications equipment market, driven by an increase in data traffic of about 30 percent annually, is now about $40 billion a year and is growing about 15 percent annually, according to the Sutro report. The Sutro Quarterly Telecommunications Review also includes reports on 11 manufacturers of telecommunications products: Cisco Systems, Nortel Networks, Tellabs Inc., 3Com Corp., Newbridge Networks, Digital Microwave Corp., World Access, P-Com Inc., Ortel Corp., Performance Technologies and Centigram Communications Corp. Note to Editors: To obtain a copy of the new Sutro Quarterly Telecommunications Review, call Frances Flores at 213/362-4153.

To: fumble who wrote (13145)	8/31/1999 8:37:00 PM
From: gbh	Read Replies (2) \| Respond to of 18016

Is this the Prism (sp?) switch fabric technology which NN was reported to use? (on this list) fumble, the IBM/CSCO deal press release talks about a programmable network processor. This would not be the Prizma switch fabric. I believe this is a not yet announced product. CSCO's Lightstream product uses an MMC Networks switch fabric. The older Stratacom gear uses a proprietary fabric. Not sure what the newer Stratacom switch used, but I'm 99% sure it isn't Prizma. One key aspect to this deal is the purchase of "routing and switching intellectual property". In other words, CSCO is either buying or licensing (more likely) IBM's considerable networking patent portfolio. CSCO's own patent portfolio is incredibly weak for a company its size. gary

To: fumble who wrote (13145)	9/1/1999 2:12:00 AM
From: pat mudge	Respond to of 18016

The Prism switch fabric comes from IBM, but Abrezio's in there somewhere, not sure how. Now that they've been bought by PMC-Sierra, we'll have to track what's happening there. I'm glad the Cisco-IBM announcement has inspired some debate. What's clear is that Cisco needs IBM's products and technology. No threat there. Changing topics slightly, I know NN's 50/320 is several months ahead of Cisco's MGX (?)in one major account, and besides time-to-market, it beats the socks off the MGX in scalability. Seldom has the David and Goliath analogy been more appropriate. Pat