If 3Com Corp’s takeover of Chipcom Corp does go ahead, it calls into question the latter’s recently-expanded relationship with Cisco Systems Inc, under which Chipcom is to deliver RISC-based engines for its ONcore switching system that make use of Cisco’s Internetwork Operating System technology. Cisco said Right now [the takeover has not] been completed and […]
If 3Com Corp’s takeover of Chipcom Corp does go ahead, it calls into question the latter’s recently-expanded relationship with Cisco Systems Inc, under which Chipcom is to deliver RISC-based engines for its ONcore switching system that make use of Cisco’s Internetwork Operating System technology. Cisco said Right now [the takeover has not] been completed and we will continue to work with Chipcom until that point, and then re-evaluate. John Boyle, vice-president of business development for 3Com, was more positive, commenting We would like to continue that relationship [with Cisco]. It’s an important test to Cisco. They’ve tried to position the Internetwork Operating System as an open software standard, so [whether they continue the deal with us] will show if they’re serious. Cisco revealed that it had been in discussions with Chipcom about a potential takeover before the 3Com deal was announced. Nothing came of these talks because Cisco has two main criteria when deciding upon acquisitions: whether there is a new growth opportunity; and if it is a new area for Cisco. Chipcom failed both. We did not look at it as a growth marketplace and it is not a new area for us Boyle concluded.
