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

To: Gary Korn who wrote (52582)	8/22/1998 6:07:00 PM
From: StockMan	Respond to of 61433

Re - You've identified the problem with all technology leads -- they evaporate. AMD put pricing pressure on INTC (even with AMD's far more limited production capacity); LU etc. put pricing pressure on CIEN; CSCO etc. will put pricing pressure on ASND's products.. As will NT/BAY and LU put SEVERE pricing pressure on Cisco's bread and butter routers and switches, with L3 switches thereby reducing Cisco's margins and corresspondingly its Stock price. Stockman

To: Gary Korn who wrote (52582)	8/22/1998 9:27:00 PM
From: bucky89	Read Replies (1) \| Respond to of 61433

now csco with thier new TGX and MGX switches will strongly compete with 500 and 550; advantages for TGX and MGX is that they are also core + multiservice edge which asnd lacks in the edge area; imo, from this point on asnd will face tougher times Will strongly compete with 500 and 550? Wait a minute, Cisco is pushing POS as the next-generation backbone technology, not ATM. I doubt the TGX and MGX will draw significant resources at Cisco. It's the GSR that they're pushing. Besides, I think it will be a non-factor because by the time the TGX and MGX are released to production, the GX550 and CBX500 will be Lucent products. As Bind noted, they are at least a year away from introduction, and then yet another year or two away from being bug-free. As of now, they are not even on the radar screen for the carrier customers. The carriers I know of who have committed to Cisco are focusing on the GSR and Packet over Sonet. AMD put pricing pressure on INTC (even with AMD's far more limited production capacity); LU etc. put pricing pressure on CIEN; CSCO etc. will put pricing pressure on ASND's products, even if they are great. This is true only to a limited extent. It's very difficult in networking to dislodge an incumbent vendor. Ascend will be the incumbent ATM vendor, and this will make it harder for Cisco to penetrate carrier accounts. If the CBX550 becomes a LU product, that makes it even more secure in carrier accounts. bucky89