Nortel, Microsoft Strike Deal

Nortel has signed a four-year deal with Microsoft. Nortel CEO Mike Zafirovski says it could generate more than $1-billion of revenue. The deal, which includes a lot of optimism and a lot of unknowns given the unified messaging market has yet to really see robust growth, could be a win-win for both companies. It could give Nortel some more exposure in the enterprise market, while boosting Microsoft’s efforts to become a bigger player in the business communications arena. For Nortel, this is really a deal it had to do given the PBX market has quickly evolved from hardware with some software to software with some hardware. Sooner or later, the PBX business and the business communications software business were going to collide. By striking a deal now with Microsoft, Nortel avoids the inevitable and positions itself for a potentially brighter future – or at least one that won’t be as bleak. For more, check out Microsoft’s PressPass, VoIP and Gadgets Blog and GigaOm.

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3 Responses to “Nortel, Microsoft Strike Deal”

  1. Randy Charles Morin Says:

    Way cool! My RRSPs are not dead after all.

  2. ExNortelDontLookBack Says:

    The Microsoft Nortel pipedream
    Commentary: Latest pact is all smoke, no mirrors

    “Let’s be honest here: Insofar as communications is concerned, specifically, Microsoft is a laggard and Nortel is too. Two laggards do not make a juggernaut.”

    http://www.marketwatch.com/news/story/story.aspx?guid=%7B9D898B31-A37F-4D7E-A2DF-A83C8A201AB7%7D

  3. Munaff Ahmed Says:

    This is a very good move by Nortel – it has positioned itsef well for the future -by aligning with a Microsoft which has a monoply of the desktop – now why did Microsoft not think of buying Nortel with its $35billion cash – the reason is anti-trust laws will oppose this takeover – so partnering is the right choice

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