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To: chaz who wrote (33994)	10/28/2000 11:03:03 PM
From: Boplicity	Read Replies (1) \| Respond to of 54805

It's the way things are going chaz. Development happen so fast that big companies can't react so the buy. You just pointed out a flaw in CSCO's model by the way. Greg

To: chaz who wrote (33994)	10/30/2000 12:56:57 AM
From: Judith Williams	Respond to of 54805

here's what is beginning to bother me...the acquisitions route some of our favorites take to plug product holes. Depth in r&d may be more profitable in the long run than breadth. All of JDSU's acquisitions have been accretive, for example, but more than that they have added a specific, and new segment. And by acquiring actual expertise instead of starting from scratch, they shorten development lead time. (Not incidentally, they also cut out a potential competitor as the SDLI/GLW marriage would have created.) The Uniphase/JDU-Fitel merger brought together active/passive; Etek is adding MEMs. And SDLI will bring more ultralong-haul. The important thing, I would think, is that acquisition not become a substitute for in-house r&d or primarily an investment vehicle, but a way to broaden the entire spectrum of r&d and yield more comprehensive product offerings. Judith