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To: sand wedge who wrote (7949)	10/9/1999 8:00:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

>> Have you given any consideration to the potential competitive threat Cisco faces from Lucent? I read a great quote a few months ago, "In the old days, the big ate the small; In today's world, the quick eat the slow." The voip area is the "convergence space" in which csco and lu will meet. The eventual winner is still in doubt, but for the first few years, the market itself will be growing so fast, both will win. In the long term, I like the lean, adaptable model that Cisco represents over Lucent's old world model. Lucent's recent troubles with wcom indicates they don't have a winning approach. uf

To: sand wedge who wrote (7949)	10/9/1999 11:29:00 PM
From: Jean M. Gauthier	Read Replies (1) \| Respond to of 54805

Hiya, Lucent is NO threat to Cisco.... Under any circumstance, under any scenario, after any and all acquisitions they may make. Their model is flawed, witness Cisco's deal with KPMG vs Lucent's deal with that company they bought.... Cisco Strenghts: 1- IOS, is as close as a MicroSoft lock in the Networking world I have ever seen. No one comes close, and it IS a VALUE Chain GG, with other smaller companies writing to it (the "IOS") a la Microsoft... 2- 65% Margins, a fabless, contracted out manufacturing operation , VERY Focused. 3- Aggressive go-go culture, vs the old RBOC culture of slow-mo... Cisco makes decisions in the time the Lucents/Nortel approach a situation 4- Employee retention in the 93% with 50% of the lost cisco employees dropped a year by "involuntary means" aka firing, the bottom 5% of the company. 5- Alliances up the Wazoo, a value chain built around it, hordes of cash for acquisitions... I can go on, but I am tired.... <g> tonight Take care Jean

To: sand wedge who wrote (7949)	10/10/1999 12:11:00 PM
From: JRH	Respond to of 54805

Have you given any consideration to the potential competitive threat Cisco faces from Lucent? I have thought long and hard about the threats that Lucent and Nortel represent to Cisco. I have taken the cautious position that the best way to wait out this fight is to have both companies (Cisco and LU). IMO, both companies will make a load of money once VoIP becomes mainstream. I think that Cisco's business model is much, much superior to LU's. Regarding INS, this is an example of LU using the old-world "vertical integration", as opposed to CSCO, who specializes in one area, and one area only (horizontal integration). It just makes sense to run a high tech company like this, IMO! Also, since INS was previously a Cisco house, all sales employees are going to have to learn a whole new product line. This _might_ lead to the attrition of some employees. Why learn a whole new set of products when you can go to another company and use the skills you have already? Hey, KPMG is hiring Cisco networking specialists <gg>! In addition, Lucent also has some great technological potential sitting within Bell Labs. If Bell Labs was as great as everyone says, then why did LU need to go and buy all these companies? ;) BWDIK, Justin