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To: chaz who wrote (34003)	10/29/2000 9:12:18 AM
From: Boplicity	Respond to of 54805

It's a stew or gumbo for you southerners <g> we have going. Lots of ingredients coming many from chefs. What we are talking about with CSCO also goes right along with what RocketMan and I were talking about with the FED removing the VC and IPO market. CSCO R&D department has been cut back by the FED. re: JDSU's approach has been different. I see them building a stronger company by adding blocks, rather than plugging gaps. That might be a function of the difficulty in working with optics and how young the sector is. Where established companies, first movers if you will, have distinct advantage over starting a smaller company. Optical sector is not like the traditional network sector that has been working with silicon. There are many silicon jockeys out their tolling away in garages, where as in optics the talent pool is not nearly as large, so there are not as many smaller companies to pick and chose from. VC industry has switch gears and is now trying to address the optical start-up area, but the FED is throwing a wet blanket on that attempt too. Greg

To: chaz who wrote (34003)	10/29/2000 9:15:29 AM
From: areokat	Read Replies (1) \| Respond to of 54805

That developments unfold rapidly is an understatement, but it seems that they unfold someplace else even more so. When you have holes, it makes me wonder just how customer-close these companies really are. Are these companies cherry picking....letting others do the grunt work from which they then select the most promising? If you let someone else solve a customer problem before you do, it can only mean you're losing touch yourself. Chaz You made some very good points but there is another look to this. Consider the innovators dilemma. An established company that listens to its customers in regard to a disruptive innovation is usually misled. In this context you do not want to listen to your customers. Disruptive innovations are not likely to be made by a main stream R&D department but might be by a "skunk work" or a spin off or a start-up that can be acquired. CSCO has a strong competency in acquiring and integrating small, start-up companies that have technologies that CSCO thinks it needs. One of the critical factors that CSCO looks at in an acquisition is the personnel fit between the two organizations and if it isn't there they will walk away from the deal. I think it is a unique company that execute extremely well and has developed an acquisition management culture that is the basis for it's surviving in a very competitive arena. Just my $.02 worth. Kat