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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?


To: Michael Hart who wrote (2666)12/17/1997 9:19:00 AM
From: kech  Read Replies (2) | Respond to of 8358
 
An analyst just stated the following about Cabletron:

Analyst Lindsay said Cabletron was trying to manage the
tricky feat of migrating its existing customers of high-end,
shared-media hubs over to high-end switches.
"They have used their direct-sales force to do this," he
said. "They are very oriented toward direct sales, not indirect
distribution. In my opinion, this has been a challenging
transition for them, because it's not clear that the same
people who buy hubs are the same people who would buy their
high-end switches."

Anybody know why there would be different people buying hubs than those buying switches. Is thus a department vs centralized IT personnel conflict? Also, how is this transition going for CS - from hubs to switches? A year ago it was expected that this transition would help them and would also help them eat into routers. Apparently this vision is not happening? Or is it just slower than was thought?



To: Michael Hart who wrote (2666)12/17/1997 9:46:00 AM
From: Doug  Read Replies (1) | Respond to of 8358
 
Hi Michael: Thx for that clarification. Assuming that CS has 1/3 of its total workforce in production, we still have 4000 workers generating $370m vrs 6000 workers generating $620m for Bay. That would put Bay ahead. It will be interesting to know the exact numbers.
We may qualify for an MBA if we keep this up.!