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

To: RetiredNow who wrote (6413)	8/3/2000 12:38:31 PM
From: telecomguy	Read Replies (2) \| Respond to of 14638

"It's Cisco's judicious and heavy investment in webifying all their internal business processes. This is how they have the highest revenue per employee of any of the networking companies. They leverage their employees throught the use of technology." THAT is a misconception........CSCO as I have explained many many times is currently in a very different business -- albeit they are trying to get into the Carrier market. CSCO sells boxes. NT builds network. Two different business that require different number of manpower to generate revenue. Service component in NT's Carrier business is much higher. You would have a better compare if you took a company like JNPR and compared their revenue/employee to CSCO....what would that look like I wonder. Of course I agree that webfying the back-end will improve the efficiency of any company operations and no doubt CSCO has saved lot of money. NT's operations are quite a bit more complex and they probably have lot more legacy systems that are lot more trikier to integrate into a Web based front-end. NT is also lot more distributed and has operations in many more countries than CSCO........all of which makes it more difficult to convert their systems very quickly. You will see CSCO numbers start to get degraded as they start to add employees and buy up companies in their effort to crack the Carrier market........and i think the revenue numbers will start to converge rather than diverge in the future.