The rise of the next networking giant?

Posted by: Stephen Baker on June 1, 2005

Dinner last night with a networking exec. We asked which networking companies could grow to challenge Cisco and Juniper. Two possibilities, he said. One, a rising star from China. The second, more intriguing possibility, would be a brand-new networking conglomerate.

Here’s how he sees it: There are billions of dollars sitting in private equity. Lots of networking companies have steady market positions, decent cash flow—and are going nowhere. Conceivably, investors could piece together a stable of these companies, and find a blue-chip telecom exec to hack out costs, forge a corporate culture and create the next networking giant. Sound far-fetched? According to this exec, it’s just a matter of “catching five or six falling knives and turning them into a rocket.”

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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