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

To: Techplayer who wrote (32742)	3/14/2000 11:36:00 AM
From: telecomguy	Read Replies (1) \| Respond to of 77400

This last sentence has to be the UNDERSTATEMENT of the year! NT is only "now" a force to be reckoned with?? Hmmm.. "For its part, NT is now a force to be reckoned with in optical" Briefing.com 09:07 ET ****** Nortel Networks (NT) 121 11/16: Who do they think they are, Cisco (CSCO)? NT has made a statement in the last few months by acquiring technologies in a Cisco-like fashion. Having just acquired Qtera in December, NT added optical start-up Xros to its portfolio today (pronounced chi-ros). In both cases, the target was a technology rather than market share (a primary tenet of Cisco acquisitions), in both cases the purchase price was a hefty $3.25 bln, and in both cases, the technology being targeted was optical. Qtera specializes in long haul fiber optic transport -- its technology has greatly increased the distance over which signals can travel over a fiber without need of regeneration. Xros specializes in optical switching, also known as optical cross-connects. At last week's Optical Fiber Communication conference, Agilent (A) made waves by unveiling its optical switch based on inkjet technology. But Xros was also a highlight of the conference with its optical switch which uses micro-mirrors to redirect photons. Fiber optics have already become the standard for long haul data and voice traffic, but bandwidth capability in this long haul segment has outpaced bandwidth capabilities at network junctions where long haul traffic must be handed off to find the end user. Cisco, Juniper (JNPR), and others believe that terabit routers will fill this need. But Agilent, Xros, and Sycamore (SCMR) are looking to optical switches to do the job. The reality is that there will probably be large markets for both, and Nortel has just gained entry into the optical switch market with its purchase of Xros. The high prices being paid by NT for pre-revenue companies such as Qtera and Xros bring to mind the deal that started this trend -- Cisco's purchase of Cerent. And the message remains the same -- the opportunity in the optical networking market is huge, and ownership of technology is key. NT has apparently learned from Cisco's acquisition success. NT has in fact targeted two technologies -- long haul transport and optical switching -- that Cisco lacks. This will undoubtedly increase speculation that Cisco will go after Qtera competitor Corvis (private co. in which CSCO owns a stake), and leaves open the question of whether Cisco still believes that its terabit routers can successfully compete against optical switches. If not, Cisco's options are not cheap -- Sycamore is now a $35 bln company. For its part, NT is now a force to be reckoned with in optical networking. - GJ

To: Techplayer who wrote (32742)	3/14/2000 12:10:00 PM
From: MikeM54321	Respond to of 77400

"Xros specializes in optical switching, also known as optical cross-connects." TP- Yes. If the DCS referred to in the RHK statistics was for grooming traffic onto a SONET/SDH network. I assummed that it was. And did you catch my comment about terminology confusion? Well look at the above.<g> Kind of hard to figure out what-is-what in our converging networks of tomorrow. TLAB is building switching into their cross-connects. Apparently Xros is too. Now it's going to get real confusing for 2000 stats. Don't forget, if you find that Dataquest report let me know. I'd like to read it in more detail. Thanks. -MikeM(From Florida)