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

To: zbyslaw owczarczyk who wrote (6370)	7/31/2000 8:18:26 PM
From: The Phoenix	Read Replies (1) \| Respond to of 14638

A couple of clarity points. 1) You can not compare price paid per employee without first getting an idea of productivity (revenue generated per employee). 2) Number 1 doesn't really matter without looking at revenue growth and margins. The point is, comparing NT's acquisition of ATON against CSCO's of ARPT is almost impossible... they look pretty equal to me. The real difference is how will the companies execute to extract some return from their investment. 3) The article sighted earlier suggesting ATON had 80% of the web switch market was way off. At 100M in revenues that would equate to 25% of the market which closed Q100 at about $400M (according to Dell'Oro/BCR). Also according to Del Oro/BCR in Q100 the breakdown was: Cisco $30M ATON $20M F5 $17M FDRY $10M ARPT $10M RDWR $7M Also sighted in the same research was that ARPT showed the fastest growth among all the competitors. Also pointed out was that nearly all of ATON's revenues were from fixed (low-end) switch configurations. I wonder what the margins were - and I wonder how well ATON fits with NT. As for ALA... they didn't even show up on the list as a competitor. These are the facts. OG

To: zbyslaw owczarczyk who wrote (6370)	7/31/2000 10:41:36 PM
From: telecomguy	Read Replies (1) \| Respond to of 14638

Maybe ALA was not interested because it did not understand the potential market size of content aware web switches. Zo, if ALA CS 100-800 does everything that Arrowpoint and ATON products do, where is their market share. And clearly CSCO is not going to continue to allow ALA to license Arrowpoint software in the forseeable future. Let us not try to spin something from nothing. ALA is not even registering on any scale when it comes to software application based platforms. ALA is trying to follow in NT step but they are just not able to execute like NT in my humble opinion.........fine company and ALA will still be here and are valued reasonably but will they become a Gorilla of integrated networking.... I highly doubt it.