|
To lead the people, walk behind them. -- Lao-Tzu
CISCO AND COMPETITORS -- Cisco has reached its pre-eminence in data
routing and switching by growing faster than rivals, aided by acquisitions
of other players. 3Com and Bay Networks have had a hard time keeping up.
But now we're entering the era of the virtual network. Cisco will go
head-to-head in data networking with much larger companies that have made
their livelihood by supplying the equipment that runs the public network.
Now, Cisco must lick the likes not just of Nortel, but Lucent and Siemens.
It almost seems a mismatch -- in Cisco's favor. Neither Nortel nor Lucent
is a big factor in data networking. But as the use of the Net expands,
the
field may tilt in their direction, Nortel and Lucent figure. The
widespread use of multimedia virtual private networks "is going to be a
leveler" of competition between equipment vendors that each want to swipe
chunks of each other's turf -- be it Cisco's stronghold of corporate and
Internet service provider clients, or Lucent and Nortel's communications
carrier customers, said Eastern Management Group's David Yedwab. Until
data dominates the public network, and until IP dominates data, the side
weighing in with more meat remains to be proven. [Inter@ctive Week,
11/17]
ATM/ETHERNET PARTNERSHIPS -- Are the packet-switching and cell-switching
camps making love, not war? Not quite, but Ethernet and asynchronous
transfer mode (ATM) suppliers are saying nicer things about each other's
technologies. Both sides are trying to make Ethernet and ATM
internetworking more effective and transparent. With the Ethernet
dominant on the enterprise campus and ATM dominant in network service
provider public networks, vendors of each are partnering around Internet
Protocol (IP). In the past 12 months, major Ethernet players found
partners in the ATM community. Cisco Systems purchased StrataCom, then
partnered with Alcatel. Ascend Communications acquired Cascade
Communication. Bay Networks acquired Rapid City Communications. 3Com
joined ATM partners Siemens and Newbridge Networks. ATM giant Lucent
Technologies acquired Ethernet access supplier Livingston Enterprises
and, like Lucent, competitor Northern Telecom announced a broad
strategy to both business data and voice markets, linking itself with
Shiva. The trick for vendors is to marry the best of two very different
worlds. [Inter@active Week, 11/17]
LUCENT MAKES CLASSY EXIT -- Lucent soon will be gone from Montgomery,
Ala., but not forgotten. The Montgomery distribution center is a victim
of a new distribution system pulling work back into Lucent factories,
said Bob Stiff, Lucent's plant manager. Inventories will be minimal and
delivery times shortened. The company, which once employed 285 to 300
people in the plant, will cut its work force of about 50 employees to
about 10 on Friday, and close at the end of the year, Stiff added. Lucent
workers who wanted to continue with the company were offered other jobs,
and some, like Stiff, will retire. The story Tuesday was Lucent's classy
exit. "The closing wasn't concurrent with the loss of work," said Stiff.
"So we polled the work force and found we had some high-priced teachers,
mechanics and computer specialists. And for about two months we had
full-time workers reporting to volunteer locations." Nobody was forced
to volunteer, but Stiff said Lucent workers put in close to 9,000 hours
at Catoma School, the City of St. Jude, Capital City Healthcare nursing
home and Head Start. [Montgomery Advertiser, 11/19]
RECEIVER CHIP FOR DIGITAL TV -- The Microelectronics arm of Lucent has
developed a receiver chip to be used in televisions, PCs and other
consumer appliances that received digital sound and video. The chip was
co-developed with Mitsubishi Electronics and is part of a larger chipset
for use in high-definition televisions and other digital-based appliances.
[ComputerWorld (Australia), 11/21]
INFERNO'S LATEST -- Inferno's latest version for small devices has already
convinced 60 partners of Lucent. Inferno 2.0 recognizes the programs
made in PersonalJava, a simplified version of Java. Lucent's system is
delivered with navigation and messaging tools, a telephone directory and
a text editor. [01 Informatique (France), 11/21]
MULTI-MODE PHONES -- Many cellular carriers are maintaining analog
networks and deploying digital technologies at the same time. PCS
providers are providing spotty coverage as they build out digital
networks. Meanwhile, subscribers want complete service, including
roaming. As a result, phone vendors are developing an array of new
products, including basic single-mode phones, dual-mode phones and even
dual-mode, dual-band phones. According to Doug Wilsterman, director of
sales and marketing at Lucent, to improve product development, the
company now combines engineering, R&D and manufacturing in the same
facility. Having the entire team together in one building is much
more productive, he said. "By coexisting, you're able to get much more
rapid market information into the product-line development and right
into the manufacturing scheme." [Cellular Business, 11/97]
************************* FRIDAY'S FEATURE ************************
HONORING BOB ALLEN -- Lucent Chairman Henry Schacht had the honor of
introducing retiring AT&T Chairman Bob Allen during a special event
held recently by Morristown (N.J.) Memorial Hospital to raise funds
and recognize Allen's commitment to the community.
"Bob will go down in history as one of the great business leaders
of this century," said Schacht, who served as chairman of the occasion,
which drew close to 750 people, including government, community and
business leaders.
Following divestiture, "Bob brought AT&T into a competitive world,
creating a 'new' AT&T and helping to change the entire industry," Schacht
said. "Two years ago, his wisdom and courage led him to another bold
decision that proved to be a huge winner for everyone involved --
shareowners, customers and employees. Bob created three strong companies
and set them on the right course."
From the beginning, Schacht noted, Allen understood Lucent's
potential as a fully separate company. Today, that potential is clear to
everyone -- 18 months after our Initial Public Offering, Lucent's market
value stands at $55 billion. "Bob provided the opportunity of a lifetime
to me, Rich McGinn and all of the employees of Lucent Technologies,"
Schacht said. -- by Maureen Dvorak
|
