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To: Eddie Kim who wrote (32399)	9/7/1998 2:32:00 AM
From: Cheryl Galt	Respond to of 97611

Eddie, When I mentioned innovation, I was thinking more of the young MS Millionaires, who got their pile, got away, and started really doing their own thing --- usually not in the software area. I, too, have plenty of resentment for pacman style operators, where Marketing is a destructive weapon, and innovative companies are cut down. IMO, it doesn't have to be that way. I very much like the CEO of Newbridge Networks, Terry Matthews, a man with a corporate vision I greatly admire. His business model is so different from the usual capture-and-destroy merger/squash/buyout method. He feels mergers are inherently inefficient and destructive, and steers clear of most. NN did acquire UB in California, in order to get its Fortune 1000 clients, and I think it didn't work out (not sure, I've been too busy to keep up). Instead, Matthews develops his core area, then nurtures Newbridge Affiliates. Zero competition and full cooperation -- from the ground up. So there's no product overlap or waste, or discontinuities between the Parent and Affiliates. Matthews encourages (and invests in) these partner companies, rather than seeing them as competition. We pay little attention to Newbridge, because it's Canadian, but IMO NN's resulting creativity and innovation will eventually blindside some US companies. ( I am NOT Canadian.) Here's a link from my files to an OLD (July '97) interview with Terry, that talks about his business model. -------------------------- First a blurb, to get the jist of the interview: Today, all Terence Matthews, Newbridge's CEO, wants to talk about is his company's keiretsu, Newbridge's version of the Japanese concept of inter-company teamwork. Newbridge has put together a stable of start-ups that all work on a related set of best-of-breed networking products and applications. This is Matthew's Dream Team with which he will battle Cisco ------- Midway in the article, Matthews answers this question: VB: Many of your enterprise competitors acquire companies. You start them. What's the advantage? Full article is at techweb.com The web sites of Newbridge and the Partners all point to each other. Everything coordinates, cooperates, enhances, is additive. I love this business model. newbridge.com I don't mean to promote this particular company here, just mention its business model. Haven't looked at NN's stock price in a long time. Cheryl