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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Zoltan! who wrote (29949)	12/3/1999 12:11:00 PM
From: telecomguy	Read Replies (2) \| Respond to of 77400

Zoltan, why don't we look at recent events as opposed to trading personal opinions which means diddly squat (did I spell that right?) This relates to the recent problems Cisco has had with Sprint and Telia, two major Carriers by anyone's definition. And if you think reputation is not important in the Public Infrastructure network market, you are dreaming big time! WHAT HAPPENED? 1. Sprint Corporation canceled a $500 million plan to upgrade its long-distance phone network with equipment from Cisco Systems and Tellabs. 2. After working with Cisco for three years, and dedicating 120 Sprint employees to the "JCS 2000" development effort, the deci- sion to cancel the order was made partly because Cisco was late in developing a product Sprint had ordered. 3. "We're projecting a pretty significant increase in voice traffic next year, Nortel switches will be in place longer than we thought because of the growth in voice traffic. We need the DMS 250. The data switches weren't there yet," said Russ Robinson of Sprint. Sprint is evaluating Nortel's Succession portfolio that offers -- in a single solution -- what Sprint had hoped to get from Cisco, Tellabs and Telcordia. 4. Cisco spokesman Doug Wills downplayed the canceled order, saying, "From a revenue standpoint, this was less than $25 million." WHAT DOES THIS MEAN TO CUSTOMERS? 1. Cisco did NOT deliver the products to Sprint Corporation, the nation's #3 long distance player. Cisco did NOT deliver the products to Telia either (see Take Action Memo # 99-04). Why should I think Cisco would demonstrate any better performance for my business? 2. Cisco does NOT do what they say they will do. Cisco does NOT know how to service the needs of carriers. 3. Nortel Networks has developed and demonstrated the solution set that evolves voice and data networks into a next generation net- work. Cisco has yet to earn this credibility. Nortel Networks continues to deliver multi-service IP products and networks on time. WHAT SHOULD I SAY TO MY CUSTOMERS? 1. Sprint Corporation has canceled an estimated $500 million contract with Cisco. In doing so, they made a decision to continue buying Nortel Networks current voice switches and are evaluating our Succession offerings for their next generation network. 2. Cisco claims a focus on the Service Provider market but has yet to deliver "Real World'" solutions. Cisco's inability to deliver has resulted in Nortel Networks winning deals at Telia ($60 million), and now the high-potential opportunity with Sprint. 3. According to Paine Webber's Walter Piecyk, Nortel Networks is the PRIMARY vendor behind Sprint's Integrated On-Demand Network (ION) and is the primary benefactor from the increased capital spending of telecom operators throughout the globe. 4. Nortel Networks is the leader. Sprint and Telia both know it. You should, too.

To: Zoltan! who wrote (29949)	1/6/2000 10:26:00 AM
From: Zoltan!	Respond to of 77400

In response to telecomic's techstocks.com I stated: >>You think LU/NT's vertical integration is an advantage over Cisco's horizontal model. That is precisely the "Old World" thinking that Cisco derailed while becoming the most successful technology company in history. As Chambers has stated many times, Cisco's structure has been and shall continue to be a key advantage allowing Cisco to react far better and faster to changing technologies than either of the old companies. Cisco Remains in the Top Position in Technology Business Research, Inc. 3Q99 NBQ Ranking Business Editors HAMPTON, N.H.--(BUSINESS WIRE)--Jan. 6, 2000-- Industry Leaders Forward Integrate into Customer Relationship Management (CRM) Software Market Cisco Systems (Nasdaq: CSCO) remains in the top spot in TBR's (www.tbri.com) Network Business Quarterly (NBQ) competitive benchmark ranking. Cisco's financial results continue to validate the use of a horizontal model and information technology-driven operation that has provided the company with the strongest business model of all its competitors. NBQ Benchmark Index for Third Quarter 1999 3Q99 Rank 2Q99 Rank 2Q99 3Q99 #1 Cisco (Nasdaq: CSCO) #1 6.77 6.77 #2 3Com (Nasdaq: COMS) #2 5.62 5.58 #3 HP (NYSE: HWP) #3 5.27 5.38 #4 Intel (Nasdaq: INTC) #4 5.10 5.35 #5 Lucent (Nasdaq: LU) #5 4.63 4.84 #6 Nortel (NYSE: NT, TSE: NTL) #9 4.17 4.72 #7 Marconi (OTC ADR: MCONY) #8 4.23 4.39 #8 IBM (NYSE: IBM) #6 4.59 4.29 #9 Cabletron (NYSE: CS) #7 4.40 4.21 Source: TBR Representing a major turning point, Cisco, Lucent (Nasdaq: LU), and Nortel (NYSE: NT, TSE: NTL) now have their convergence platforms and market positions ready to battle for leadership positions in the combined data and voice markets. To further differentiate platform offerings and to increase margins, these leaders are also forward integrating into application software, including CRM software that is integrated with next-generation Internet call center solutions. 3Com Corporation (Nasdaq: COMS) and Hewlett-Packard (NYSE: HWP) maintained their second and third place positions based on their business model strengths and manufacturing efficiencies. Although Nortel moved up to sixth position this quarter, its business model will continue to be weak in the short-term as the company grapples with meeting demand growth while it shifts away from vertical integration. Intel, in fourth position, continues to have the strongest business model of all the companies. TBR has renamed the Fore Systems report to Marconi plc (LSE: MNI; ADR: MCONY) to reflect the on-going transformation of General Electric Company plc into a leading telecommunication equipment provider under the Marconi name. TBR believes Marconi has the potential to displace one of the top three leaders because of the depth of its product portfolio, geographic diversity, and marketing momentum. This quarter, TBR started coverage of Alcatel (NYSE: ALA), a latecomer to the U.S. market, who is accelerating its market presence through acquisitions, as well as through its worldwide services capabilities. At the corporate-level, Alcatel has transformed from a widely diversified conglomerate of dispersed businesses based on geographic units to a global multinational telecom player, all within a relatively short period of three years. The initial TBR coverage of Alcatel is provided as a non-scored industry impact report. "Alcatel's biggest chance in the United States is, if one of the big three falter in their execution, it opens an opportunity for Alcatel to move into their key markets," according to TBR's Director of Network Business Quarterly, Bill Lesieur. "Alcatel's biggest challenge is to quickly create customer awareness and brand identity across its U.S. target markets of service providers, enterprise, and consumer markets. 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 industry benchmarking and analysis of the major players in the global networking and communications markets through its Network Business Quarterly (NBQ) service. Complete details are available to accredited journalists. For more information, please visit TBR's website at www.tbri.com, or contact: Complete details are available to accredited journalists. For more information, please visit TBR's website at www.tbri.com, or contact: CONTACTS: Bill Lesieur, Director NBQ Technology Business Research, Inc. PH: 603-929-1166; FAX: 603-926-9801 email: lesieur@tbri.com Jon Lindy, Vice President Technology Business Research, Inc. PH: 603-929-1166; FAX: 603-926-9801 email: lindy@tbri.com quote.bloomberg.com