Has Cabletron Systems thrown in the towel or repositioned itself for better days ahead?
Yesterday’s announcement that the company plans to break its business into four separate operating firms could either be taken as a sign of desperation or recognition of changing market dynamics in the networking industry, according to analysts. Once a networking heavyweight that competed against Cisco Systems, 3Com, the former Bay Networks and others, Cabletron fell behind in the market for high-speed switching devices. At one point, executives had considered selling the company, as its market share and stock price dropped. Now, Cabletron hopes to re-ignite investor interest amid high demand for stock in the likes of upstart competitors Extreme Networks, Foundry Networks and Juniper Networks. Investors appear to prefer start-ups like Juniper, which do not have a large customer base to protect and provide for, and therefore can act more nimbly. These companies also have painted their technology as a necessary behind-the-scenes component of the Net. As a result, Juniper’s stock has incr
