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

To: Bindusagar Reddy who wrote (59571)	1/27/1999 9:23:00 AM
From: Lee Ring	Read Replies (1) \| Respond to of 61433

HONG KONG, CHINA, 1999 JAN 26 (NB) -- By Staff, IT Daily. Ascend Communications [NASDAQ:ASND] has unveiled its virtual private networking (VPN) strategy for the Asia Pacific region. Called MultiVPN for carriers, Internet service providers, and enterprises, the new strategy was designed to advance the VPN market by addressing the key concerns of both service providers and enterprise subscribers. With MultiVPN, companies can use the public network for private communications with management capabilities, assured levels of service and availability, and compatibility and security, through a provider/subscriber architecture. The system uses Internet Protocol (IP), asynchronous transfer mode (ATM), and frame relay. "We have matched enterprise-wide needs with carrier-class VPN solutions that service providers in Asia Pacific can deploy profitably," said Tony Wise, vice president and general manager of Ascend's Asia Pacific Operations. "We predict that the result will be a dramatic acceleration of VPN adoption in the region. "Now that we have established ourselves as the market share leader in access solutions in Asia, we plan to add as much value as possible to that installed base. Our initial MultiVPN entry strategy in Asia will be targeted at telcos, carriers, and ISPs which can offer this as a leased service to major enterprises and government agencies throughout the region," said Wise. Eric Sin, sales manager of Hong Kong Supernet, said: "Providing new and innovative value-added services to our customers is key to our strategy for future growth. Virtual private network solutions will allow us to meet our customers' needs by providing a cost-effective alternative to leased line connections, while ensuring the highest levels of performance and service." Reported by Newsbytes News Network, newsbytes.com .

To: Bindusagar Reddy who wrote (59571)	1/27/1999 1:14:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 61433

BR, Again, as I mentioned before I expected to get naysayers. In fact no one sighted these sales into carriers (at least on this thread) as a potential market erosion to ASND/LU. I bet ASDN/LU execs see this differently. Second, if you take a moment you'll notice that CSCO continues to migrate revenues from low cost to higher cost devices. I agree with you, margins will shrink....a point or two at the most - still well above 60%. Furthermore consolidation reduces competition pushing prices higher...so it should be interesting. Cisco keeps telling the analysts that margins will shrink and they just don't. I think even the Chambers is surprised. Why don't they shrink...well, besides the points I just made Cisco continues to increase sales over the net (reducing admin. costs) and continues to improves sales for network design, installation, and support. These high margin sales will help limit pricing pressure IMO... OG