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Technology Stocks : F5 Networks, Inc. (FFIV) -- Ignore unavailable to you. Want to Upgrade?

To: David E. Taylor who wrote (908)	5/8/2000 11:50:00 AM
From: Lane Hall-Witt	Respond to of 1801

Yes, DELL deals with quality, so that contract is a very important affirmation of FFIV. But FFIV still needs to convince the Street that it holds value even in a world that's moving from network appliances to smart switches. That's what was striking about the COMS story: getting FFIV's product on the chassis had important implications, looking forward. This suggests numerous potential sources of value for the company: (1) FFIV can produce its own switches some day (outsource manufacturing, if necessary); (2) FFIV can license its software to switch manufacturers, an extremely high-margin proposition (a la QCOM, RMBS, and the like); (3) FFIV can stand out as a viable takeout target, as its software can provide the innards for an acquirer's smart switch.