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

To: Ingenious who wrote (58419)	1/4/1999 7:26:00 PM
From: Tim Luke	Read Replies (1) \| Respond to of 61433

leland. i have very little doubt now that asnd will be bought...ibm or lu??? i don't know but i will lean a bit more towards ibm.

To: Ingenious who wrote (58419)	1/4/1999 10:17:00 PM
From: gbh	Read Replies (1) \| Respond to of 61433

A merger of this sort might also explain why IBM recently sold its networking division. Leland, I think you are confused here. IBM recently sold the IBM Global Network to ATT. This division purchased network gear (from companies like ASND and CSCO), and provided network services in competition with ATT, MCI, etc. IBM still has a multibillion dollar Networking Hardware division. This division builds ATM switches, ethernet switches, hubs, etc, and competes with CSCO, FORE, and other major players in the network industry. These products are currently marketed largely to enterprise customers, mainly those that want a single vendor to supply everything from the mainframe to the desktop. I believe this division operates at break even (at best), and is really in place because of a long history of providing SNA connectivity for mainframes. IBM currently does not compete in the carrier networking space. Up till now, they have not shown or stated any desire to compete in this space. IMO, this would seem to preclude an IBM/ASND combo. Of course, the total lack of sales/marketing overlap could be construed as a good strategic fit. But again, IBM has never publicly stated a desire to sell networking gear to carriers. They seem very content selling these guys mainframes. Gary