PEC Solutions Gets New Name

PEC Solutions, acquired by Nortel last year for $448-million, has a new name but does that change anything? In a recent research note, Morgan Stanley analyst Scott Coleman said he’s “skeptical PEC will provide Nortel with the pull-throgh it needs in the federal government space”. This isn’t a great assessment for a business that was hailed by ex-Nortel CEO Bill Owens as an important pillar of the company’s strategic focus on the government, services and security sectors. While Nortel is trying to spin PEC as an entity that will give it access to $10-billion of potential U.S. government business, the reality is it’s a mid-tier systems integrator battling it out for business in a competitive marketplace. Coleman said Nortel’s chance of getting a bigger piece of the action are bleak because Cisco and Foundry Networks are so well entrenched.

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