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.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: kathyh who wrote (63482)	9/30/1999 3:04:00 PM
From: steve susko	Read Replies (1) \| Respond to of 90042

CS related news TBR believes GEC/Fore has a significant opportunity to challenge the industry leaders in the worldwide communications markets. ------------------------------------------------- CISCO REMAINS IN THE TOP POSITION IN TECHNOLOGY BUSINESS RESEARCH, INC. 2Q99 NBQ RANKING; CONSOLIDATION AND STRATEGIC ALLIANCES DRIVING A NEW INDUSTRY STRUCTURE BUSINESS/TECHNOLOGY EDITORS HAMPTON, N.H.--(BUSINESS WIRE)--Sept. 30, 1999--Cisco Systems (Nasdaq: CSCO.O) remains in the top spot in TBR's (www.tbri.com) Network Business Quarterly (NBQ) competitive benchmark ranking. Cisco continues to strengthen its horizontally-integrated service model by extending its relationships with its key partners -- IBM (NYSE: IBM.N), HP (NYSE: HWP.N), KPMG, EDS (NYSE: EDS.N), and others. Cisco is now aggressively penetrating the SMB market and is well positioned to take the #1 or #2 share position, leaving 3Com behind within 12 months. -0- T NBQ Benchmark Index for Second Quarter 1999 2Q99 Rank 1Q99 Rank 1Q99 2Q99 #1 Cisco (Nasdaq: CSCO.O) #1 6.91 6.77 #2 3Com (Nasdaq: COMS.O) #2 5.42 5.62 #3 HP (NYSE: HWP.N) #5 5.08 5.27 #4 Intel (Nasdaq: INTC.O) #3 5.36 5.10 #5 Lucent/Ascend (Nasdaq: LU.N) #4 5.30 4.63 #6 IBM (NYSE: IBM.N) #7 4.52 4.59 #7 Cabletron (NYSE: CS.N) #6 4.58 4.40 #8 GEC/Fore (Nasdaq: FORE) #9 3.90 4.23 #9 Nortel (NYSE: NT.N, TSE: NTL) #8 4.41 4.17 Source: TBR T "The completed merger between Lucent and Ascend represents the ongoing consolidation and partnering that is critical to the evolution of the industry," according to TBR's Director of Network Business Quarterly, Bill Lesieur. "Few traces of the old industry structure of traditional data equipment manufacturers remain, leaving companies like 3Com and Cabletron going it alone in search of defendable market positions." 3Com Corporation (Nasdaq: COMS.O) maintained its second place position. Revenue growth remains erratic, as the company searches for a new strategy and shifts its business to higher-growth higher-margin product lines. Moving up to third from fifth position, Hewlett-Packard (NYSE: HWP.N) is making progress in creating customer awareness for the ProCurve brand and shipping high-performance, low-cost products with lifetime warranties. Although ProCurve has an opportunity to become a viable business, it will not become a major growth engine for HP. TBR believes HP's new President, Carly Fiorina, will eliminate the ProCurve brand and position itself as Cisco's specialist in the low-cost design of reliable, high-performance networking products for the SMB market. Intel Corporation's (Nasdaq: INTC.O) top ranked business model and low-cost commodity products are driving its fourth place ranking. This high ranking is representative of the power and influence Intel could have in the networking industry. The combined Lucent/Ascend (Nasdaq: LU) organization is in fifth position with strong year-to-year revenue growth this quarter. TBR believes that Ascend will continue to provide double-digit sequential revenue growth despite the expected rapid integration of the two businesses. TBR will be merging the Lucent and Ascend coverage into one report in 3Q99. In sixth position, IBM (NYSE: IBM.N) has resolved the fate of the precarious Network Hardware Division (NHD) by selling off its switching and routing business to Cisco, as part of multi-faceted deal that also positions IBM as a leading global support provider of Cisco networks. Cabletron (NYSE: CS.N), in seventh position, is attempting to reposition itself as a specialist in certain market segments in order to establish a defendable position in the new industry structure. In eighth position, the acquisition of Fore Systems (Nasdaq: FORE) by GEC (LSE: GEC.L) has created a large global telecommunications and networking solutions company with operations in the United States, Europe, and Asia. TBR believes GEC/Fore has a significant opportunity to challenge the industry leaders in the worldwide communications markets. Finally, Nortel's (NYSE: NT.N, TSE: NTL) business model remains weak in spite of strong sequential and year-to-year growth. Nortel continues to transform from an aged telecom to a nimbler competitor against Cisco and Lucent by way of several major initiatives, including the out-sourcing of manufacturing and development of e-commerce capabilities. TBR will begin coverage of Alcatel (NYSE: ALA.N) in 3Q99. Alcatel USA was formed based on the existing Alcatel Network Systems business in the U.S. and the acquisition of DSC Communications. Alcatel has been expanding its product portfolio and market position through acquisitions, which include Assured Access, Packet Engines, Xylan Corporation, and Internet Devices. About TBR: TBR's highly quantitative, proprietary benchmarking methodology ranks the leading global networking vendors on a comparative basis every quarter, based on effective implementation of product strategy, marketing strategy, manufacturing strategy, and business model. TBR specializes in the competitive analysis of the major players in the global networking market through its industry standard Network Business Quarterly (NBQ) benchmarking. Complete details are available to accredited journalists. For more information, please visit TBR's website at www.tbri.com, or contact: --30--sg/bos* CONTACTS: Technology Business Research, Inc. Bill Lesieur, 603/929-1166 lesieur@tbri.com or Jon Lindy, 603/929-1166 lindy@tbri.com KEYWORD: NEW HAMPSHIRE MASSACHUSETTS INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1999, Business Wire