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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Peppe who wrote (11480)	5/12/1999 8:37:00 AM
From: zbyslaw owczarczyk	Respond to of 18016

Peppe, there is not doubts that edge part of ATM has much larger market then core. And for large company like CSCO is logical to go after edge. However, I would disagree as for the reason, CSCO is not aggressive in core. About 3-4 quarter ago, when I have listening to J.Chambers talk at CC he stress that multiservices core platform is the key for CSOC,b/c it allows better control of edge business,and core is repetitive business. Core ATM is much more challenging from technology point of view then edge. If core network crash, many customers will suffer. It is not the case with access. Core ATM has also much higher margins then edge,and company like NN with superior technology should stress core. You sound that NN has the window of opportunity. My friend, so far NN has been defeating CSCO at core, I stress at core ATM in absolute majority of cases:C&W,SBC,BT,Global One to named few big ones. CSCO succeeded almost exclusively at edge. So with CSCO core been in troubles, this is not going to change. CSCO admitted at CC that they will have around summer their edge compatible with NN core. If it was CSCO initial strategy to not play core,they would have done it ( been compatible with NN) long time ago. CSCO thought it can play strong in core, but it has not been working. Regards Zbyslaw