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

To: Tim Luke who wrote (70993)	11/8/1999 9:13:00 PM
From: Tim Luke	Respond to of 90042

*this was linked to cs -------------------------------------------------------------------------------- Nortel set to cut prices, unveil licensing pacts By Ben Heskett and Wylie Wong Staff Writers, CNET News.com November 8, 1999, 5:10 p.m. PT Communications equipment provider Nortel Networks will detail a two-pronged strategy tomorrow intended to hit rival Cisco Systems where it hurts. Nortel plans to drastically cut prices tomorrow for its network routers--a lucrative market dominated by Cisco--by as much as 50 percent, according to industry sources. The move is part of a strategy to be more competitive in the market for routing devices and the software that runs in them, industry observers said. Quote Snapshot NT 69.50 +0.69 CSCO 75.31 +1.88 Enter symbol: · Symbol Lookup More from CNET Investor Quotes delayed 20+ minutes Nortel also will detail plans to license its routing software code to third parties, including to Intel and Microsoft, for use in operating systems, thin-client devices, Palm-based computers, and set-top boxes, according to sources. At the core of network routing devices is software that directs network traffic. Nortel aims to shift its networking focus to that software core of routing systems, essentially leaving hardware concerns to its rival Cisco. Nortel is said to already have issued 200 software licenses for its routing code to third parties, according to sources, as part of an effort it calls the "Open IP Environment." "There's no way they're going to get top billing in the router market--Cisco owns it," one industry insider said. "But not the market for the enabling technology." A Nortel spokesman refused to comment on unannounced plans. Nortel is looking to draw users away from current routing technology to use all-encompassing routing software that can link many different computers to Nortel's fiber-optic based equipment, according to industry observers. The initiative also furthers the company's aim to reconstruct itself as an Internet-based company. Nortel's timing isn't coincidental. The company plans to announce its newest business deals the same day rival Cisco releases earnings for its most recent quarter. Cisco is expected to announce per-share earnings of 23 cents for its first quarter, according to consensus estimates compiled by First Call. The announcement is likely to be closely watched, given recent rumors that Cisco may miss Wall Street's expectations for the quarter. Cisco garnered 70.5 percent of the routing market, compared with Nortel's 9.1 percent share in 1998, according to market researcher Dataquest. Bay Networks, the data-oriented networking firm Nortel acquired in 1998, purchased routing technology last year for use in the Open IP environment. Nortel plans to discount its line of so-called enterprise routers, sources said. The cost of the technology is dependent on how complex the installed software is. Base prices generally run as low as $30,000, according to industry analysts. Though there are few specifics, Microsoft plans to incorporate Nortel's software in an upcoming release of its Windows 2000 operating system, according to sources. Windows 2000 is scheduled to ship to customers early next year. Intel plans to use the software in conjunction with its burgeoning networking chip business, sources said. A Cisco spokesman seemed unconcerned with Nortel's new plans. In response to the strategy, the spokesman said that Nortel's routers will "finally be priced what they're worth."

To: Tim Luke who wrote (70993)	11/8/1999 9:30:00 PM
From: jimbos	Read Replies (2) \| Respond to of 90042

Bought AFCI at 9 sold at 15, been looking for a pull back for a while now, more rumors of another large contract coming, just can't remember with whom. Foreign company if I remember correctly. Best pull back was 22 to 18ish about 10 days ago.