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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: jghutchison who wrote (9340)	7/12/2000 5:58:28 PM
From: DukeCrow	Read Replies (1) \| Respond to of 12623

I agree with most of what you are saying. The major innovation is most definitely occuring at start-ups, and it is imperative for the big players to acquire the needed technology. As far as Agilent's switch and Alcatel, I'm not quite as pessimistic as you. Alcatel is simply buying a component for their optical systems, just as the vendors of MEMs-based switches will be buying components from JDSU (Cronos), Corning (Intellisense), and a bunch of other MEMs players. I'm sure they will develop a fully integrated product. No one produces all of their components in-house; out-sourcing is becoming the norm. You cannot buy components on the open market using a mix and match approach and achieve optimum performance and cost effectiveness, nor can you direct and control their development. The result is often a kludge. And a generation behind. Why would you assume Alcatel is taking a mix-and-match approach? Everyone is outsourcing components. That's why JDSU, SDLI, ETEK, etc. have done so well over the past year. The Cyras acquisition is a perfect example. I assume you mean Chromatis. If not, when did this occur? It would be a big purchase. Ali