But nothing approaches the complete and total dominance of Broadcom’s (BRCM) grip on Ethernet switching silicon.
Prediction is an entertaining activity better suited for stimulating discussion than providing an absolute outlook on the future. Therefore, the bolder and more controversial, the better. Keep that in mind as you read and respond.
I know two American engineers who have relocated to China to lead optical module design teams at Chinese equipment companies. They live and work in China for Chinese companies, using their skills to build custom modules – skills no longer in demand from their American Tier-1 telecom equipment employers.
Cisco swallowed another chip company this morning, Greenfield Networks. The notable thing about this acquisition is that Cisco rival Huawei/3Com built their high end system around the Greenfield device. I’m willing to bet that Greenfield was a lot more important to Huawei/3Com than it was to Cisco. And I’m willing to bet that’s why Cisco bought them.
Anyone know where the next ten-bagger investment is in the Telecom sector? Does anyone believe such an idea is even possible anymore?
On February 2, 2006, the day the Nortel/Huawei Joint Venture was announced, Google directed a search to this site with the following terms. My Web Stat software picked it up.
I guess I found the fact that someone from Nortel was trying to understand problems with the Huawei / 3COM venture after they had just completed one themselves was, ironic.
Now, it looks like the Joint Venture between Nortel and Huawei is over. It’s hard to say whether this is positive or negative, since so little was known about the intent in the first place.
From yesterdays 10-Q filing (Page 50):
On November 9, 2005, we and Huawei Technologies Co., Ltd. entered into a non-binding Memorandum of Understanding to establish a joint venture for developing ultra broadband access solutions. We and Huawei have now decided not to proceed with a joint venture,” reads the filing.
Hat Tip to Lightreading