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 : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (47664)	5/28/1998 1:32:00 PM
From: Kenneth E. Phillipps	Respond to of 61433

From the San Jose Mercury Posted at 7:03 a.m. PDT Thursday, May 28, 1998 Lucent to introduce interruption-free software BY SCOTT MORITZ The Record, Hackensack, N.J. Class distinction will soon be available on the Internet. Lucent Technologies said Wednesday that it is introducing a roster of Internet switching equipment and software that, among other things, will give phone and Internet companies the ability to sell higher paying customers guaranteed interruption-free high-capacity connections. ''Some of us are going to go stand-by, some of us are going to go coach, and some of us are going to go first class. And those who have to go first class are going to have to pay a premium for it,'' said Peter Bernstein, president of Ramsey-based Infonautics Consulting Inc. Lucent's race into data communications intensifies with Wednesday's announcement of new Internet-based equipment. Although has not sold any of the systems yet, after an initial trial period with MCI, Lucent plans to offer them to phone carriers and Internet service providers early next year. Basically, the equipment will be able to manage calls and data traffic by compressing information into packets, each with their own priority coding. The switching equipment will be able to read the coding and send more important information over reserved segments of the network. In theory, the system would work like a mailroom were express mail, priority mail, and regular mail are each handled differently. Developed over the past year at Lucent's Bell Labs in Murray Hill, the so-called ''PacketStar'' and ''PathStar'' equipment will rival that of other companies including Cisco Systems, which has been the Internet's dominant packet routing manufacturer. Though filled with communications potential, the Internet's lack of reliability, because of traffic log jams and system failures, have deterred many companies from offering extensive phone and data services. But if Lucent can make equipment to help carriers guarantee their Internet-based service, experts say it gives carriers money-making potential. ''The minute you can define quality of service you begin to stratify,'' said Jim Carroll, President of Carroll-Net a Bogota-based Internet provider. ''And if there is going to be a high, low, and no quality, you are going to assign different price tags to it.'' Carroll said his guarantee of quality ends where his network ends and no assurances can be made beyond that. ''If I knew the technology was there, and I was assured I could deliver it, sure I would be thrilled to do it and I could list quite a few customers that would be interested in buying it,'' Carroll said. Spun from AT&T two years ago, Lucent has been determined to capture large portions of the growing data communications industry by both designing equipment and acquiring companies that develop network equipment. Analysts say that these switches and recent acquisitions such as Prominet and more specifically the pending $1 billion buy of Yurie Systems will help Lucent provide the type of equipment that will bridge two worlds: one dedicated to voice transmission and the other that moves sounds, images, and text in the form of data packets.

To: gbh who wrote (47664)	5/28/1998 1:55:00 PM
From: Darren	Read Replies (1) \| Respond to of 61433

13:30: We're right at 1100 on the S&P Futures, fighting for the future of humanity...

To: gbh who wrote (47664)	5/28/1998 2:51:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 61433

Gary, Hmmm, well this time I think you're wrong. True ASND purchased a good company in Cascade and they have done well with it. but this was out of neccessity not out of strategy. They had to make do with what they have and the RAS market wasn't cutting it for them. On the other hand STRM wasn't nurtured as well as they could have been by CSCO, but a lot of that had to do with their incredible ability to grow faster than the market in traditional layer 3 markets. However, the one thing CSCO did want to do was to take it to ASND, that's why they focused on the RAS market - that was ASND's bread and butter. ASND has done an excellent job and moving their business into the backbone - leveraging the CSCC produts. CSCO apparently isn't done with ASND and so now they are pumping funds and efforts into the STRM division. They are trying to put the squeeze on ASND. I think this is indeed something to worry about. As a holder of both ASND and CSCO I'm concerned about ASND. Their product line is so narrow that if they get hit bad on the backbone they have no way to recover. That could hurt valuations significantly - just one bad quarter and we're in the low 30's again. OG