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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: JAMES E. MICHELS who wrote (19706)	1/30/1998 3:10:00 AM
From: Henk Kruisbrink	Read Replies (2) \| Respond to of 36349

<even-a Grant Dove-who is reported to be on their Board and on the Board of USWEST> I'am reading between the lines that the Netspeed <-> USwest deal is a favour deal. Mostly those deals don't last very long. Let's analyse the deal: 1. Netspeed, a startup company get a huge mega deal (compared to Netspeed's size, I'm guessing that they're small) to install a huge amount of equipment troughout the area where USwest is operating. 2. They had a good story according to the USwest reply we got. 3. Does Netspeed have the manpower to deliver the goods? 4. Does Netspeed have the logistics for a deal this size? 5. Was the deal closed between buddies (Grand Dove and his USwest counterpart)? My 2 Dutch guilders analysis: 1. There is a good change that the deal is too big for Netspeed, and that it will take them down the drain. 2. I was once in sales support and we got a big deal because we had a good story, beating our biggest competitor. (this was before I worked with 3Com), but after installation we didn't sell much to them. This means that USwest gave the deal to Netspeed based on a good story, and not to a company that has a solid reputation. 3. Startups generally don't have the manpower to do huge deals, and are reluctant to hire new personel for just one deal. The result will be overstressed employee's, who will leave very soon, not good for the business. 4. I checked their website again, and I can't find any info on other office's than their HQ. This mean that they have no logistics in place, nor any info on training facilities for customers (USwest) engineers. 5. After the analysis of the above 4 items, I have the feeling that this is a oneoff deal from the "good old boys network" HK