It was a silly rumor started by a columnist who saw that Nortel was divesting parts of the company and that Cisco had money.
It never made sense and should not have caused a major discussion! ;-) Priscilla At 04:14 AM 10/18/01, Robert Hanley wrote: >Amazing...I don't mean to be haughty or insulting >(really) but all of this seems so clueless: > >Why the concept of Cisco buying Nortel is so >laughable. They might be able to pull it off >financially right now, but it would be like Hyundai >buying GM. The problem is that even though Cisco is a >huge player in the Enterprise and service provider >space, in the RBOC, ILEC space they are out of their >element, and are even hated, much less distrusted due >to their efforts to bully the standards organizations, >etc... in the carrier space. > >I personally think that the view of cisco is always >skewed by those who see them from the view of the >enterprise, which is small potatoes from the >standpoint of a carrier vendor. Maybe the real message >here is that the distinctions between those two >markets are disappearing, or at least their interests >are merging (can anyone say OE). > >I don't mean to "dis" anyone on this list, but I think >the game is changing, perhaps in ways we all don't >understand, but at least the Nortel's of the world are >trying. To say Cisco will buy Nortel is like saying >McDonalds will start seving steak. > > >--- Chuck Larrieu wrote: > > I'm just wondering what Nortel has that Cisco really > > wants. High end optical > > maybe, but as I said, Cisco already has Cerent, plus > > a stake in Ciena. > > > > Other than that, does Cisco want the PBX business? > > The switch business? the > > router business? the secure access device ( > > Conntivity ) business? the > > Content server / switch business? > > > > In each case, Cisco either has a product line of > > it's own, or a strategy to > > bypass the particular technology ( AVVID vs PBX ) > > there is no point in > > buying more. In fact, it can be argued that this was > > one of Nortel's > > mistakes - trying to assimilate too many disparate > > technologies > > > > Besides, I was responding to the headline "Cisco to > > buy Nortel" And that > > makes no business sense at all. :-> > > > > Chuck > > > > -----Original Message----- > > From: [EMAIL PROTECTED] > > [mailto:[EMAIL PROTECTED]]On Behalf Of > > Priscilla Oppenheimer > > Sent: Sunday, October 14, 2001 12:49 PM > > To: [EMAIL PROTECTED] > > Subject: RE: Cisco to buy Nortel??? [7:22909] > > > > > > At 01:10 PM 10/14/01, Chuck Larrieu wrote: > > >If Cisco were to buy Nortel, they would be buying: > > > > > >1) all assets - meaning product lines, customer > > base, etc > > > > Why do you say that? Nortel is in the process of > > breaking itself up from > > what I have read. > > > > P. > > > > > > >2) all liabilities - meaning support > > > > > >Questions to ask: > > > > > >1) why would Cisco want to buy a PBX line of > > products when they have a > > >mission to eliminate PBX in favor of AVVID? > > > > > >2) why would Cisco want to take on a whole new line > > of routers and > > switches, > > >which they would have to support? Either that or > > EOL all of it? There's no > > >halfway here. > > > > > >3) Cisco might want to assume technologies like > > high end optical. But what > > >would that mean vis a vis their investments in > > Ciena and Cerent? > > > > > >4) why would Cisco want to assume another full > > product line that competes > > >directly with their CVPN line ( i.e. the Nortel > > Conntivity ) ? > > > > > >Sad to say, because I too think Nortel has some > > excellent products and > > >product lines. their VoIP solution is quite > > credible, coming form a company > > >that really is in the voice/PBX business. their > > Alteon and Conntivity line > > >rivals anything Cisco has to offer. their high end > > optical is certainly > > >worth looking at. > > > > > >but truth be told, Nortel is probably going to have > > to dump their router > > and > > >switch lines, just the way 3com did last year. 3com > > couldn't find a buyer. > > >Nortel probably won't either. > > >given all of the above, what's in it for Cisco? Too > > many liabilities, and > > >not enough assets, the way I see it. > > > > > >FWIW > > > > > >Chuck > > > > > >-----Original Message----- > > >From: [EMAIL PROTECTED] > > [mailto:[EMAIL PROTECTED]]On Behalf Of > > >JG > > >Sent: Friday, October 12, 2001 4:08 PM > > >To: [EMAIL PROTECTED] > > >Subject: Re: Cisco to buy Nortel??? [7:22909] > > > > > > > > >I agree in not seeing much merit for Cisco (or > > anyone else in the business > > >already for that reason) in buying Nortel out. > > > > > > Looking at the recent market cap for Nortel, and > > at the cash reserves > > that > > >Cisco is sporting the past decade, it wouldn't be > > an issue, not financially > > >at least, but strategicaly why would anyone bail > > Nortel out? > > >Who ever buys Nortel out, would be doing them a > > tremendous favor, but on > > the > > >other hand.... what about the agressor? What's > > his/her benefit? > > > > > > Of course none has named me venture capitalist of > > the century, nor my > > >friends call me Warren [as in Buffet ;-)] but that > > is my honest estimate of > > >things. > > > > > > Nortel looks as if is withering away on its own, > > why would one pay for > > it, > > >even if it's at a deep discount? > > >-- > > > > > > > > > Rgrds' > > > JG > > > > > > ---== Success, is where preparation, > > meets opportunity ==--- > > > > > > > > >""[EMAIL PROTECTED] (John Nemeth)"" wrote in > > >message > > news:[EMAIL PROTECTED]... > > > > There was an article in the local paper about > > the possibilty of > > > > Cisco buying Nortel. Cisco says that they don't > > plan on making any > > > > major purchases right now, but apparently > > several analysts recommend it > > > > since it wouldn't be a major financial hard ship > > (although it would > > > > drain their reserves Cisco has enough cash to do > > it, and they have a > > > > much higher market capitalisation). > > > > > > > > I'm ambivalent on the idea at the moment. > > On the one hand it > > > > would be a major coup for Cisco. It eliminates > > a major competitor, > > > > gets them a big boost in optical as well as > > VOIP. And, Nortel may get > > > > decent support (their web site really sucks both > > in terms of finding > > > > sales information and technical information; and > > when I was trying to > > > > get a manual for something they told me to call > > a reseller {most > > > > companies now have manuals on-line or will sell > > them to you, instead of > > > > making you pay for support}). Cisco would also > > find themselves in the > > > > telecommunications business. About 12 years ago > > when I worked for Bell > > > > Northern Research (the R&D arm of Nortel), > > Nortel was the world's > > > > largest supplier of telephone equipment (i.e. > > central offices, PBXes, > > > > etc.); although, I think AT&T/Lucent may have > > surpassed them in that > > > > department. I don't know if Cisco wants to get > > into the traditional > > > > telephony industry; but, it could help their > > VOIP efforts. And, if > > > > Cisco bought Nortel, that would bring Howard > > back in the fold. :-> > > > > > > > > On the other hand; although there are > > companies nipping at Cisco's > > > > heals in certain niche markets, Nortel is their > > only serious competitor > > > > across the board. I'm not sure Cisco buying > > Nortel would be a good > > > > thing for the industry. We could end up with > > another M$ situation. > > > > Competition helps keep everybody on their toes > > and helps drive > > > > companies to improve their products and > > services. This brings up the > > >=== message truncated === > > >__________________________________________________ >Do You Yahoo!? >Make a great connection at Yahoo! Personals. >http://personals.yahoo.com ________________________ Priscilla Oppenheimer http://www.priscilla.com Message Posted at: http://www.groupstudy.com/form/read.php?f=7&i=23382&t=22909 -------------------------------------------------- FAQ, list archives, and subscription info: http://www.groupstudy.com/list/cisco.html Report misconduct and Nondisclosure violations to [EMAIL PROTECTED]
