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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (12091)	2/11/1999 12:17:00 AM
From: Regis McConnell	Read Replies (1) \| Respond to of 42804

Sector, how will MRV ever be able to sell its AcceleRouters when Cisco provides such a clear an affordable alternative upgrade path?;-) "Cisco says it has two ways to pep up the performance of its underpowered 7000/7010s-without resorting to multilayer switches or router accelerators. Plan 1: Slot in blades from the 7500, the box it introduced in 1995. True, the 7500-like its predecessors-is software-based. But its VIP (versatile interface processor) scheme equips the blades with their own processors. Don't look for any big bargains here. Just upgrading a 7000/7010's software to take advantage of distributed processing costs $10,000. And an 8-port 7500 blade for 10-Mbit/s Ethernet retails for $8,000. Many net managers may think that's too steep a price for the performance improvement they see. And the router is still sitting there as a potential bottleneck." "Plan 2: Buy a bigger router-the 7500, which can cost well in excess of $100,000 fully loaded. (Cisco does have a trade-in program to help defray costs.) And the 7500 isn't a magic bullet. The vendor claims it can route up to 1.2 million packets per second, but that's not quite the legal limit of one gigabit Ethernet link." Regis