Ever since Nortel bought Bay Networks for more than $9-billion in 1998, Nortel has been adamant about establishing itself as a leading enterprise player. The idea, in theory, is it should be able to leverage its expertise and strong position in the carrier market to attract enterprise customers. The only problem is this strategy has yet to really work. Sure, Nortel CEOs (John Roth, Frank Dunn, Bill Owens and, now, Mike Zafirovski) like to talk the talk about how a new approach will turn things around but it hasn’t happened yet. Owens even trash-talked Cisco by suggesting the market was looking for a viable alternative, which is another way of saying "if you don’t do business with us, Cisco will continue to dominate the market and keep prices high". For his part, Zafirovski seems intent on pursuing the enterprise market. "We do believe we have a real chance to be strong in enterprise," he said last week during a conference call with analysts. "Enterprise is an area we certainly are very committed to." This explains Nortel’s agreement today with Symantec to add intrusion prevention to its application switch family. Maybe Zafirovski will provide more detail about Nortel’s enterprise strategy during his fireside chat today at a J.P. Morgan conference.
Archive for the ‘Enterprise’ Category
According to Information Week, Nortel CEO Mike Zafirovski will spill some of the beans this week about the New Nortel. This will include a new, streamlined global services business that will focus on 70 "discrete" services rather than 700. Mike Z. believes that with a better on services, which now account for 20% of Nortel's sales, that part of the business can double in size. The press release that came out this morning can be here. Nortel is also apparently looking to improve its standing in the enterprise data networking market, where it lags behind Cisco and Juniper. A part of this initiative was the launch last week of new routers for branch offices – based on technology from Tasman Networks, which was acquired last December for $99.5-million. A high-end enterprise router is expected to be introduced later this year.