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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: ricky who wrote (1978)	7/21/1998 9:53:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 3818

Interesting, but that's a fairly significant undertaking. If I were cisco, would i want to introduce another variable in a key product just to save a little money? PMCS drives the price performance of its products to improve at the same rate as cisco and the rest of the infrastructure business. As long as capital cost is on the same curve as the price curve of the business a substitution is extremely unlikely. Reliability and support costs are an increasing part of the equation. If i were a cisco customer (I realize i wouldn't notice physical layer chipset differences) I would prefer as much consistency as possible on the same product. TD

To: ricky who wrote (1978)	7/22/1998 8:08:00 AM
From: ricky	Read Replies (1) \| Respond to of 3818

Trader Dave, I would like to add some additional comments to an earlier post. There are also many other issues to consider when changing from one vendor to another. There are mechanical issues such as packaging and component geometries. There are thermal issues such as power dissipation. The components must have the same functional capabilities and meet all timing requirements. The list of items is extensive. Most likely your comment on the design wins lasting the lifetime of the product is accurate. Competition becomes a problem on new designs where another vendor has components that compete with PMC-Sierra. This causes the vendor that had a monopoly to lower their prices. Ricky