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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: telecomguy who wrote (40284)	10/2/2000 9:51:38 AM
From: telecomguy	Respond to of 77400

Yes, this is what I have been pounding for the past few years ..... on the CSCO thread (but they don't seem to get it). Interesting trend possibility here............will the Carriers start to contract out NETWORK MGMT to vendors like NT to avoid all the staffing, training, & operating overhead as the networking technology is becoming; 1) ever more complex 2) changing rapidly 3) requires huge staff training 4) requires TIME to implement INTERNALLY (perhaps the biggest cost) If the trend is started by C&W (due to profit pressures) to sub-out not only the BUILDOUT but also the ongoing management of their network to NT, wow.....this is an interesting evolution but one that makes perfect sense from the Carrier's point of view. We see this already with the new-fangled next Gen carriers like Metro Fibre (I am not sure if I got the name correct) who not only awarded a huge pan-european metro fibre buildout project to NT but also gave NT the responsibility to MANAGE that network. Who can better manage without the huge training, and hand-over delays inherent in new network buildout than NT or the vendor that builds the network. The new network players may evolve whose sole value-added input is marketing & customer service leaving NT to build and manage their complex network......and clearly if this business model gives the new generation Carriers an advantage over the incumbent players, it won't be long before the incumbents like C&W, AT&T and BT to name just a few will start to off-load the back-room network mgmt functions to the integrated vendors like NT. How this will affect NT in terms of perception from their other customers will also be interesting since NT is getting ever closer to their customers......possible conflict of interest? Probably not. All in all, a monumental contract and one that will surely be noticed by the CEO's of other major Carriers. If this trend accelerates, NT will gain at the expense of product orinted companies like CSCO.