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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (5217)	6/16/1998 12:52:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Pat: I would agree. Perhaps with your Networking skills you may be willing to chair a small Investors Forum, come up with a short list and follow it up with the STC. Layer 3 switching was designed to reverse the trend of ever increasing Net COMM complexities .The idea was to transform the switched enterprise infrastructure into a low maintenance data utility with the minimum of closets. The old hub and the Legacy router have finally converged into one smart box.I think Layer 3 switching has delivered and most of the larger Enterprises are converting. With the rapid increase of Gigabit Ethernet and convergence of Voice and data there is a big market for products like Bay's. You ask me if Bay's IP switch was worth $9b. Well the mkt reduced it to $7.5b and said "okay". Bay has a huge distribution Network and above all a lot of personal Marketing/Sales Contacts with most campuses and Enterprises. The cost for setting up a similar organisation is near $100,000 per head. Hence,if NT can keep up the R&D they have a ready made and proven Sales Force. So in brief, my answer is yes NT's take over of Bay was worth it even though it will dilute earnings for a few quarters. Regards.