Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: zbyslaw owczarczyk who wrote (47825)	2/3/2001 8:31:36 AM
From: Kenneth E. Phillipps	Respond to of 77400

Russo says routers will mix with optical layer like "peanut butter and jelly". Cisco gearing up to battle high-tech rivals with new product line Playing catch-up: High-speed routers, optical equipment Simon Avery Financial Post MOUNTAIN VIEW, Calif. - Cisco Systems Inc. will try to reposition itself as the top equipment supplier in the combined worlds of Internet traffic and optical networks with several new product announcements today. The San Jose, Calif.-based giant has carved out a dominant market position for itself making gear that routes traffic around the Internet. But rival Nortel Networks Corp. and a few smaller companies have left Cisco behind in the market for optical networking gear, which transmits voice and data at blinding speeds. Today, Cisco will launch a class of high-speed routers that directs traffic along the backbone of networks, as well as new optical gear that sits in the "last mile" of the network, between the user and the core. While the new products do not close the gap in optics between Cisco and Nortel, Cisco says the announcement positions it as the company best able to integrate optics with Internet Protocol (IP), the language of the Internet that is increasingly being used in all kinds of networks. "We're making routers work seamlessly with the optical layer," said Carl Russo, Cisco's vice-president of optical networking. "In the past, IP has travelled over the top of optical. The two layers have been built by two different sets of people working independently. They've worked literally like oil and water, and we're going to make it like peanut butter and jelly." The strategic announcement comes as telecom customers are trimming their budgets for networking gear. Cisco has warned the investment community twice this month to anticipate lower short-term growth for the industry, causing some speculation that for the first time in its 11-year history as a public company, Cisco could fail to meet quarterly earnings expectations when it reports Feb. 6. "Obviously they've got their sights set squarely on Nortel," said Dan McLean, an analyst with International Data Corp. in Toronto. "The challenge for Cisco is to try to legitimize itself in the core space of the network. Nortel is really there already because it's been supplying the telecom market for a long time now." Cisco says with its latest class of products that it has proven its capability to supply carriers at the core. "We've achieved the reliability that the markets demand," Mr. Russo said, siting AT&T Corp. and Worldcom Inc. as two of its carrier customers. Cisco hopes its new routers will also enable it to hold off competitive challenges from smaller players, such as Juniper Networks, which until now has had the fastest routers on the market for months. savery@nationalpost.com

To: zbyslaw owczarczyk who wrote (47825)	2/3/2001 9:27:06 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

I was just kidding about Germany ZO.. of course Germany is important. It's actually an inside joke. <vbg> That said, I don't think Siemens is responsible for 10% of Cisco's revenue... I don't think Cisco has a single customer like that. First Cisco (in the last 10Q) has 30% of it's sales in Europe, Middle East, Africe (EMEA)... and if Siemens is responsible for 10% of Cisco's revenues (or more) you're suggesting that they are responsible for 35% of Cisco's EMEA business.... I sincerely doubt that. Further there's this little tid-bit in the 10Q on page 12. No single customer accounted for 10% or more of net sales during the three months ended October 28, 2000 and October 30, 1999. I'm sure Siemens is an important customer for Cisco but you should double check your data before posting what could be percieved as quite negative. Do you have URL for "Unisphere". The company on the web that I found doesn't manufacturer or engineer hardware or software... they're a reseller... OG

To: zbyslaw owczarczyk who wrote (47825)	2/4/2001 11:43:11 AM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

ZO, Thanks to a perusal of the Siemens thread I picked up this gem. Message 11095479 It would seem that Siemens Unisphere has annual revenues of $200M. Are you sure Siemens is looking to them to replace their Cisco products. I think this would be a mistake. here's my sense of this. First we have to make the assumption - and I think it's a good one - that Germans are familiar with Cisco products and are comfortable with them. If this is the case the suggestion being made is that Germans would rather opt for an unproven product from Siemens that they would buying a proven product from a competitive reseller in Germany. For it's pretty obvious that if in fact Siemens wishes to sell product from Unispher that the Cisco sales team will look for other resell sources - most of which will be more than happy to sell Cisco. This being the case Siemens will be competing with other local resellers selling Cisco versus unproven - perhaps incompatible - Unisphere products. And, if we give Siemens the credit they deserve they will have some success in Germany but the overall impact to Siemens will be far greater than it is for Cisco. Siemens will be giving up their ability to sell Cisco outside of Germany since companies in other countries may not be as loyal to Siemens as the Germans. In exchange Siemens will get better margins in Germany (they already have market share via sales of Cisco products). Seems like a dangerous move. BWTDIK... OG