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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer Flugum who wrote (19058)	11/7/1998 12:12:00 AM
From: jach	Read Replies (3) \| Respond to of 77397

NEXABIT CLAIMS TERABIT-SPEED ROUTERS By Peter D. Henig Red Herring Online November 6, 1998 The term "breakthrough technology" gets repeated so many times in the networking business that our eyes tend to glaze over at the mere mention of it. But when a tiny company named Nexabit announced that it had nabbed $20 million in venture financing from Paul Allen's Vulcan Ventures for its own "breakthrough technology" in the router market, we sat up and took notice. And it's a good thing we did. The Marlborough, Massachusetts-based Nexabit is making the bold claim that its new "combined carrier class ATM switch/IP router in a box" can achieve terabit speeds. Just how fast is that? "About 100 times faster than anything Cisco (CSCO) has on the market," says Mukesh Chatter, Nexabit's chief executive officer. In more technical terms, Nexabit's creation has, according to the company, an internal switching bandwidth of 6.4 terabits per second. Those are fighting words, or rather fighting speeds, especially when an unknown like Nexabit comes out swinging for the core -- the most fundamental part of the network, through which all public network traffic must travel. Cisco has owned this space since Internet time began, and several new high-speed players like Juniper Networks and Avici are also vying for a piece of the pie. ---------------- another one to add to Juniper, Avici, NetCore, Pluris. Not to mention the LU PcketStar IP Router and NT with BAY. We all know when too many players jump in to gain market share. Prices will drop. Look at the portable disk drive mkt, Syquest and IOM, the market is quite big but no margin for profit. The same thing will happen to the networking business, the market is going to be very big, but not much margin anymore. IMO, as margin erodes, the stock proces will come down. Look at the price of Syquest and IOM.