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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Mang Cheng who wrote (19244)	7/16/1998 2:35:00 AM
From: joe	Read Replies (1) \| Respond to of 45548

Mang, I was just about to go to sleep and started reading your article<g>. Some comments: >>Compaq will pick and choose the gear it needs to ensure quality of service across LANs and WANs and to focus on key vertical markets such as manufacturing and finance.<< Basically, they're taking DEC's clients and trying to service them themselves. The only good thing about DEC is it's connections to major legacy sweatshops. Plus, they think they have better quality of service than COMS??? Who the heck would believe that? >>Compaq also hopes to establish beachheads with ISPs by offering hardware that will let ISPs offer IP-based virtual private network services. << Good luck! (Is this DEC's obligation to Cabletron?) >> Part of Compaq's plan includes leading customers of Digital's Network Solutions Integration Services (NSIS) to the network promised land. Compaq bought Digital, including NSIS, earlier this year. << Now didn't DEC sell it's network part to Cabletron? I guess their customer's didn't go with the package. >>That means developing hardware and software that lets Digital users assign priorities to applications at the desktop and have the rest of the network give them the same priority. << COMS playground here...good luck. The only advantage CPQ has is first dibs on DEC customers. Hopefully COMS will be on top of this. >>Ashok Kumar, an analyst with the Piper Jaffrey consultancy in Minneapolis, took a harsher view. He said Compaq has no unified vision for networking, and its strategy is a matter of "trying to stitch together different vendors. Nevertheless, there is a great opportunity here for the company on the vendor-integration side," Kumar said.<< Sounds like he's got it right. >>With its Digital purchase, Compaq inherited an NSIS obligation to buy $1.1 billion worth of gear from Cabletron over the next three years. Johnson said he will reveal next month that shopping list and whether the equipment will be labeled with Compaq or Digital logos (NW, June 29, page 1).<< I'm starting to think CPQ made a mistake buying DEC. >>...including Compaq Gigabit Ethernet switches, which are made by Extreme Networks, Inc...<< Gigabit Ethernet switches getting hot! This should be right up 3Com's alley. Conclusion: Compaq at best is a systems-integrator with old DEC clients. 3Com's, superior products and expertise should be winning these contracts. If they're not, they're screwing up...that's what we need to be looking for. Sounds like a marketing challenge at most. Hopefully, this new guy is good at marketing. Any comments??