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

To: Jay Couch who wrote (20835)	1/15/1999 6:51:00 PM
From: Eric	Respond to of 77400

Jay I'm not looking for the "Old Carriers" to last very long once deregulation hits full speed. There are so many new carriers trying to get in local and long distance that it makes my head spin. In Washington State a lot of new upstarts are trying to get in the local exchanges and are driving the local players GTE and U.S. West nuts! The build-out with parallel networks will be pretty big and as Mr. Fun says all the big suppliers will make out very well. I really liked Cisco's comeback today and I'm looking for a new high in the stock next week in anticipation of earnings in a little over two weeks. Everyone have a good weekend! Eric

To: Jay Couch who wrote (20835)	1/15/1999 6:56:00 PM
From: Bindusagar Reddy	Read Replies (2) \| Respond to of 77400

Jay, this model works well when you are building enterprise networks. Carrier market is a different ballgame. Carriers don't make decisions like small companies and order online. LU knows carrier more than CSCO. These are huge deals. Most people are confused and are under the impression that CSCO is taking the Carrier market. As Mr. FUN intelligently pointed out CSCO is a force in enterprise market with 80-85% of revenues coming from enterrise markets. CSCO may become the king in enterrise and LAN switches which will eventually get commoditized. Carrier market is mainly WAN market and building a RELIABLE 24 HOUR 7 DAY network, CSCO has not demonstrated that they can do it. LU/ASND combo specializes in this market.(like a neurosurgeon working on brain) CSCO is more like a General practitioner. 90% of ASND revenues are from Carriers. LU is LU, a telecom specialist. CSCO might win some business but will not become a major player in Telecom area. They will remain an ENTERPRISE networking comany... As far as the LU/ASND merger is concerned, it will be smoother than CSCO dreams. Mr Chambers said ASND CSCC merger would fail. Instead Cascade was the one responsible for ASND success with carriers. Mr. Chambers keep dreaming all mergers fail. This one is NOT going to, IT will blossom faster than most people think. ASND/LU has momentum now. They may a acquire one of the TERABIT Router startups soon. Good luck. BR

To: Jay Couch who wrote (20835)	1/15/1999 7:07:00 PM
From: Mr.Fun	Read Replies (1) \| Respond to of 77400

That is what Cisco would have you believe. In fact, Cisco's SG&A at 21.6% of sales in FY1998 is higher than Lucent's at 21.3%. In fact, Cisco has advised that SG&A for FY1999 will be another 180bp higher because it correctly recognizes the need to match up bodies on the street with a multi-level customer sale. LU has many more sales bodies, but also more than 3 times the revenue base to support. BTW while 60% of Cisco's orders come in through CCO, most of them are the result of a very effective sales force making the sale face to face, and in many instances, the sales rep actually inputs the order for the customer. Actually, many of these orders are actually distributers and resellers ordering on behalf of the end customer. CCO is a great system which allows customers, distributers, resellers and sales people to track orders, etc.. It frees the sales rep the unproductive task of order entry and tracking. It accelerates the logistics of getting customer equipment delivered. (In fact the manufacturing and logistics behind CCO is much more impressive than the CCO itself) However, it is not the case that 60% of Cisco's orders are unsolicited web site hits which have not required the overhead of actually having a sales person do his job. Lucent's order entry and logistics have come along way. They are not state of the art like Cisco's, but the "sales model" is the same: good sales people meeting customer needs.