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Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: john dodson who wrote (10329)	2/3/1999 11:09:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 12559

Most of FORE's customers are relatively large or very large. They sell little to the "small" and not much to the "midsize". I agree with Wendy Snow, CSCO's small strategy sounds like CSCO is seeing the handwriting on the wall. They can't maintain the rate of growth or at least the increments to growth that they have had in place for several years. I get this from CSCO salesmen. They won't come out and say there is a problem, but I can sense they are getting worried especially since they have developed a personal expenditure rate converging on their sales rate. It would make no sense for FORE to try and emulate such a strategy. They have the high end products and certain dedicated market niches. CSCO goes for the entire spectrum, but has been mostly dealing with the enterprise. This latest "switch" emphasizes that CSCO wishes to develop captive markets in unpenetrated or undeveloped Internet space. The average sales falls but they hope that can compensate by volume and repeat sales. FORE is strictly enterprise or campus up to enterprise even though they are adding capability to product to put them in a better position to capture portions of the ISP upgrade market. The problem is to get the faithful to switch. Their product offering doesn't have strong enough price/performance to accomplish this in significant scale. LU/ASND also make the waters muddy for any expectation for significant penetration.