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

To: The Phoenix who wrote (30210)	12/13/1999 5:28:00 PM
From: Curtis E. Bemis	Read Replies (2) \| Respond to of 77400

Off Bloomberg-- Cisco Unveils Router to Compete With Juniper, Lucent (Update1) Cisco Unveils Router to Compete With Juniper, Lucent (Update1) (Adds details in 2nd paragraph, analyst comment in 4th paragraph, closing share prices.) San Jose, California, Dec. 13 (Bloomberg) -- Cisco Systems Inc., the No. 1 maker of Internet equipment, unveiled a new router to direct large amounts of data traffic in a bid to match the success of a rival Juniper Networks Inc. product. The high-capacity model of Cisco's popular 12000 GSR router series is made to fit in fiber-optic telecommunications networks. Cisco plans to begin shipping the device this month. Prices start at $65,000, with a typical configuration costing about $200,000, about the same as Juniper's product. The new router is Cisco's answer to Juniper's M40, the first high-capacity Internet router, and a challenge to Lucent Technologies Inc.'s NX64000, which AT&T Corp. is testing. Nine months after it unveiled the M40 in September 1998, Juniper had 13 percent of the market for high-capacity routers, compared with Cisco's 87 percent, according to market researcher RHK Inc. ``The competition is going to have to scramble to keep up,' said Paul Strauss, a senior analyst at market researcher International Data Corp. ``They might have to cut their prices.' Shares of San Jose, California-based Cisco rose 1 3/8 to 101 3/16. They've more than doubled this year. Juniper, based in nearby Mountain View, California, fell 14 3/8 to 338 7/8. Its shares have climbed almost 10-fold since its June initial stock sale. Terabit Routers Cisco's new product, known as the 12016 GSR, is the latest of a new generation of devices known as terabit routers that can process at least a trillion bits of data per second, and promise to make the Internet faster and more reliable. A personal computer modem processes data at 56,000 bits per second. The 12016 GSR has been tested in the fastest type of fiber-optic network by Qwest Communications International Inc. Cisco said its routers can process up to 5 terabits per second when a group of the devices are linked together. America Online Inc., the world's largest online service, is also testing Cisco's new router, Cisco said on a conference call. Among other companies that offer or are developing a terabit router are Nortel Networks Corp., Siemens AG, Avici Systems Inc. and Pluris Inc. ``It's only Cisco and Juniper in this space now,' said Credit Suisse First Boston Corp. analyst Paul Weinstein, who has ``strong buy' ratings on both companies. Cisco has shipped about 4,000 12000-series routers to 400 customers since the line was introduced in September 1997, said Kelly Ahuja, its director of marketing for optical networking. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.

To: The Phoenix who wrote (30210)	12/14/1999 10:40:00 AM
From: telecomguy	Respond to of 77400

CUSTOMERS. SCALE & CONSOLIDATION IS THE NATURAL STATE OF EQUILIBRIUM IN THE NETWORK BUSINESS FOR LOT OF OBVIOUS REASONS. THIS IS A CRUDE ANALOGY I ADMIT GARY BUT THINK ABOUT ANSWERING MACHINES (ON-PREMISE PRIVATE ROUTER) AND WHAT HAPPEND TO THAT PRODUCT AS CONSUMERS REALIZED THE CONVENIENCE OF PAYING FOR VOICE MESSAGING SERVICE FROM THE NETWORK CORE. I BELIEVE THIS IS PART OF NORTEL'S STRATEGY (SEE YESTERDAY'S ANNOUNCEMENT) --- TO COMMODOTIZE AND BRING EDGE/ON-OPREMISE ROUTER APPLICATION RIGHT INTO THE NETWORK ITSELF. OBVIOUSLY THE BIG ENTERPRISES WILL STILL NEED THEIR CUSTOM ROUTER BOXES TO CONTROL THEIR APPLICATIONS (WHERE CISCO RULES -- FOR NOW) BUT THE 95% OF THE MARKET (SMALL/MEDIUM COMPANIES) WHO HAVE YET TO MOVE TOWARDS BROADBAND/IP ACCESS APPLICATIONS WILL BE A PRIME TARGET FOR NETWORK BASED ROUTING/APPLICATIONS. AS MCNEELY SAID "THE NETWORK IS THE COMPUTER". NOW YOU CAN RESTATE THAT TO SAY "THE NETWORK IS THE ROUTER!"