Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Grislee bear who wrote (34460)	9/23/1999 10:37:00 AM
From: The Phoenix	Read Replies (1) \| Respond to of 45548

Gris... Currently COMS share of the NIC business is sliding Yes it is. But it's sliding due to inaction. I fully agree with the strategy to not put additional resources into this business but...they should then sell it. This is a mature market with thin margins and I believe COMS can do better, but a product in a mature market demands increased marketing and since it's not in COMS' best interest to put their money into this product line they should get the value out of it. But then..... welll..... without it the revenue decline going forward could be even more significant. Eeesh. But 1GB enet will command a premium Perhaps, but COMS is losing market share in GigE too. DEL'ORO Market shares Q3 98 CSCO - 25% NT - 18% COMS - 17% Q4 98 CSCO - 37% NT - 15% COMS - 12% Q1 99 CSCO - 34% NT - 19% COMS - 8% Q2 99 CSCO - 45% NT - 12% COMS - 9% ADSL should begin to grow Absolutely. And Cable too; COMS got a nice win in Argentina - announced yesterday I believe. However COMS has a long way to go to get significant revenue from these markets. This latest Argentina deal may be a good sign of things to come but today 80% of the DSLAM market is owned by ALA and CSCO and 90% of the Cable Head Ends are MOT, NT, and CSCO. COMS is currently a bit player in these growth markets. One thing you forgot to mention is wireless....this is the brave new world... the wild wild west. It's anybody's game right now. That's where things will get interesting and where we'll see COMS' mettle tested. OG

To: Grislee bear who wrote (34460)	9/23/1999 11:36:00 AM
From: Gary Brack	Read Replies (1) \| Respond to of 45548

> > Currently COMS share of the NIC business is sliding ... > But 1GB enet will command a premium in the near term ADSL > should begin to grow. > COMS needs to get out of the NIC business. 1Gb enet will command a premium but it will be several years until desktop machines go to Gb so the quantity won't be there. With most ADSL and Cable modems being external and having ethernet interfaces home PCs now need ethernet as well so this will likely be designed into most motherboards because everyone uses it so the NIC based ethernet will evaporate along with the analog modem business. As for the Gigabit switch market it is mostly being used for the network backbone and will for a long time to come. Most network backbones consist of Cisco's products because they make the routers and that is why Cisco's market share is growing in Gb ethernet. COMS layer 3 switching technology is a great idea that can save a lot of money but most companies won't change because COMS doesn't have the sales reps to push the technology. There is a lot of growth left in external DSL/Cable modems as well as the wireless. I don't know what products COMS has to offer in the DSL/Cable modem market but I can say I am yet to see a provider using one. I know that PacBell and GTE are using other vendors for DSL. I don't know the reasons but what ever they are COMS needs to grow that area a lot. Hopefully with the Palm spin off COMS will be forced to focus on these markets to make any money at all.