Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: The Phoenix who wrote (32806)	3/18/2000 7:53:00 AM
From: Zoltan!	Respond to of 77400

>>Remember NT basically gave up as well not in words but in deeds. They dropped prices on their routers and are cash cowing them and are attempting to commoditize routing with OIE. HA! Routing isn't a CD or an SDK! The WSJ carried an article yesterday that said similar, that NT's revenues in that area have been falling despite their truculent rhetoric. Seems their latest ploy is to add some software division: The new division is also the latest example of increasing aggessiveness on the part of Nortel to boost revenue from corporate customers, which fell 5% in the fourth quarter despite an overall revenue increase of 21%. Late last year, Nortel took aim at Cisco Systems Inc. (CSCO), San Jose, by offering routers at prices up to 50% lower than Cisco's prices. In addition, Nortel introduced new routing software to enable a variety of devices to work over the Internet on Nortel and non-Nortel platforms. Routers direct traffic on the Internet and corporate networks. http://interactive.wsj.com/ Let them keep wasting money and credibility. Seems the only thing that keeps Cisco from taking that entire market is the specter of anti-trust, not anything NT can muster.

To: The Phoenix who wrote (32806)	3/18/2000 8:57:00 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 77400

Gary, You have been posting comments on this thread and the LU thread to the effect that NT is giving up on the enterprise sector. I am posting this article from Theglobeandmail so you can be informed about NTs intentions regarding the enterprise sector. Nortel to create e-business unit Division aimed at boosting corporate sales expected to generate $1-billion; centred around Clarify acquisition SIMON TUCK Technology Reporter Saturday, March 18, 2000 Ottawa -- Nortel Networks Corp. will announce later this month that it's creating a new e-business division aimed at boosting its wobbly sales to business customers. The new unit will integrate Nortel's various e-business pieces into one operation that will be expected to generate sales of at least $1-billion (U.S.) a year, sources say. It will focus on selling hardware, software and services to help corporate customers do business over the Internet, and will be centred around Nortel's recent acquisition of Clarify Inc. "We're planning to announce a few things," a Nortel source said. "There are a lot of things in play." The new unit will be based in San Jose, Calif., operating under the Brampton, Ont.-based company's enterprise division, which includes sales to all types of business customers other than telephone companies and other large carriers. The new operation will be led by Tony Zingale, Clarify's president and chief executive officer. Nortel, the crown jewel of Canada's technology industry, acquired the software maker on Oct. 18 for $2.1-billion (U.S.) in stock. Nortel will officially unveil its new e-business unit on March 28. The new unit will require the further integration of Nortel's existing operations in the area with Clarify and two other recent Nortel acquisitions aimed at the e-business market -- Bay Networks Inc. of Santa Clara, Calif., and Shasta Networks Inc. of Sunnyvale, Calif. There are no plans at this time to consolidate or move large groups of employees, although some Nortel employees have already moved into Clarify's building. Analysts say the e-business market is booming as companies of all sizes -- particularly large corporations in virtually all sectors -- expand the breadth of their on-line operations. "They're all in it," said Duncan McKie, an analyst at market research firm Pollara Inc. The new e-business unit's goal will be to produce a suite of products that integrates their various networks and allows corporate customers telephone or fax access through the Internet. Clarify makes software that allows businesses to manage and automate sales, marketing, customer service and quality control over the Internet. The creation of the new e-business unit is also Nortel's latest push to increase its position in the booming enterprise market. Although Nortel's enterprise sales jumped 33 per cent during the last fiscal year, some view the operation as an underachiever because it has lagged many of its competitors' pace. The division's sales fell 5 per cent in the fourth quarter from the same period a year earlier. In addition to the rash of acquisitions, Nortel also launched an aggressive pricing strategy last year when it slashed its prices in the lucrative router market. Routers, which manage and direct traffic flow over telecommunications networks, are the domain of Cisco Systems Inc. of San Jose, one of Nortel's fiercest rivals. Subscribe to The Globe and Mail COMMENT ON THIS STORY Write a Letter to the Editor SEARCH FOR RELATED BOOKS globetechnology.com

To: The Phoenix who wrote (32806)	3/18/2000 11:50:00 AM
From: Mighty Mizzou	Respond to of 77400

Seems like LU is giving up... Foolish words.

To: The Phoenix who wrote (32806)	3/18/2000 12:47:00 PM
From: RetiredNow	Read Replies (4) \| Respond to of 77400

WARNING: Long Post, but I hope well worth everyone's time No doubt, Gary. I was talking with a friend of mine at Goldman Sachs yesterday about the battle between Cisco, Lucent, & Nortel, and he asked me which of them I held. I told him, I own Cisco of course, and then sheepishly I added that I own Nortel as well. My reasoning is sound, as I told him, because Nortel is the leader in optics and because of this the year 2000 will go down in the history books as Nortel's year. So I'll make a tidy sum. So he asked, I thought you were a Cisco die-hard. Well, indeed I am, I shot back. I haven't sold any Cisco shares. And the reason is the following. Nortel has the right products at the right time. So did Lucent, but McGinn is clearly not an executer. However, having the right products is not a sustainable competitive advantage. So what comprises that advantage that Cisco has over the other two? People, vision, marketing savvy, process, execution, and cash flows. So how is Cisco better in these areas? People: Cisco acquires, recruits and retains the top talent, bar none. I have a friend at Nortel who is management level and doesn't have options. Unbelievable. Vision: John Chambers and his M&A staff have an almost flawless track record not because they are uniquely brilliant, but because they have learned how to perfect being fast followers. For those of you who don't know what that means, it's like letting others make the mistakes about where the market is going, then once it is clear, following fast and fierce, but being better than the ground breaker. Marketing Savvy: Telecomic, Mighty Mizzou and a host of others have backhandedly labeled Cisco as JUST a marketing machine. Well, sales make the world go round my friends and no one parallels Cisco's sales staff, PR & marketing teams. Sometimes it is all about positioning products until the management team can fill the gaps thru acquisitions or R&D. Process: Cisco's internal processes run like a well-oiled machine. Everything that is low margin is outsourced including much of manufacturing. Most systems are integrated and use the full power of the web. Cisco doesn't just talk the talk, they walk the walk when it comes to the Internet. Then there is their prowess at closing the books. It is unheard of to close accounting books in just a few hours. Imagine what a competitive weopon this is against say a Lucent which takes a couple of weeks to close. Execution: Cisco is tight with the analysts out there because they make promises, then deliver on them. Cisco has never missed earnings in the 10 years they have been public. This is no accident. The only folks that I've seen who manage analyst expectations as good as Cisco is you guessed it, Microsoft. Cash flows: Last but not least is Cisco's ability to consistently generate cash flows. Lucent and Nortels cash flows look like a dying patients heart chart: sky-high one quarter and losing money the next. That's no way to run a business. At the end of our conversation, my friend looked at me, and said, hey you don't have to sell me. Everyone on Wall Street knows the same thing. It's just a matter of time before Nortel and Lucent fall to Cisco like all the other networking companies did. Good luck everyone!