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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (5886)	5/20/2000 12:32:00 PM
From: telecomguy	Read Replies (1) \| Respond to of 14638

CSCO will keep it's high-end market but NT is expediting the commoditization in the low and perhaps even the mid-end router market. I was warning CSCO investors that the open IP initiative by NT had implications that were huge for proprietary routers that CSCO made their fortune on..............If a serious application market & distribution channel develops for open IP based routing embedded in common chips -- implications are huge imo.

To: Kenneth E. Phillipps who wrote (5886)	5/21/2000 11:33:00 AM
From: The Phoenix	Read Replies (3) \| Respond to of 14638

Layer 2 switches are already a commodity. This forced COMS out of the business. Huh??? COMS didn't make a layer 2 (frame relay/ATM) switch that had much share. They got out of the layer 3/4 switch market. Switching and routing is moving to semiconductors and embedded software. The rudimentary functions are but QoS, Security, and provisioning base upon user profiles is not. This is quite typical where ruidmenary process are relagated to less costly methods... leaving software to tackle more unique/services oriented applications. This is called differentiation and innovation. FWIW it's far easier to relagate long-haul switch and optic processes to hardware than it is for edge services. I suspect that the optical market in the next 24 months will begin to errode. As more component suppliers bring product to market commoiditzation will take place. Right now there is a capacity shortfall and this is the key reason for the high prices. Once 40G and 160G optioelectronics are available from a number of vendors product differentiation will be in software. The companies that are able to deliever differentiated services will be the ones that lead the pack. These services will not be delivered by hardware only solutions. OG