For anyone wondering about what Nortel and Microsoft plan to together in the wake of their partnership announcement earlier this year, all the juicy details – or at least some of them – can be found here.
Archive for the ‘Industry Sales’ Category
In keeping with Nortel’s all-bullish, all-the-time approach these days, the company is optimistic about Latin America where first-half sales climbed 22%. Latin Business Chronicle has a story featuring Martha Bejar, who heads up Nortel’s Latin American operations. "The region is…..fantastic," she said. "We’re very bullish about it." Bejar said there is strong demand for all products, ranging from wireless to VoIP. Nortel’s biggest customers in Latin American include Brazil’s Vivo, Chile’s VTR, and America Movil, Telmex and Cable & Wireless in Mexico.
Despite its painful and costly experience with BSNL, Nortel appears committed to doing business in India. At a recent telecom conference in Malaysia, Nortel executive Phil Edholm said a five-year managed services agreement with Bharti Televentures is an indication of his company's increased focus on India. He said Nortel is particularly focused on SMBs (a $7.7-billion market_ and call centers in India. For more details, check out CIOL IT Unlimited.
Nortel is pressing ahead with a new channel program called “Accelerate” in Europe and the Middle East that aims to drive sales in the enterprise and oh-so-tempting small and medium size business market. The program, launched last month, is part of Nortel’s renewed efforts to nurture external sales channels – something that probably did not receive a lot of love as the company grappled with its accounting scandal.
And now for something different….some positive news for Nortel. According to Infonetics Research, Nortel leads the IP-PBX market – with Cisco and Avaya hot on its heels. That said, Infonetics said most of the PBX market’s growth is coming from EMEA, Asia and the Caribbean/Latin America while the North American market grew only 4%. Over the next five years, Infonetics expects the PBX market to grow by 82% while the TDM market will decline by 88%. There’s also good news from the optical market – will wonders ever cease?! – as global sales climbed 19% last year to $10.7-billion, driven by the metro equipment (+15%) and long-haul (+32%) markets. Infonetics principal analyst Michael Howard said it is the first time the optical market has grown since 2001. Nortel ranked second in worldwide optical network hardware behind Alcatel.
In the after-math of Mike Z.’s presentation yesterday, here are the basic issues at play. First, Zafirovski is trying to transform how Nortel operates its business. This runs the gambit from the markets in which it plays, being smarter and more focused about R&D spending, a more streamlined, efficient and flexible operating style, and better and faster decision-making. In other words, it’s Corporate Make-Over 101. Mike Z. appears to be doing all the right things to get Nortel headed in the right direction after too many years of operating with a lack of strategic vision and strong leadership. That said, he could do all the right things and still not succeed in revitalizing Nortel. Why? At the end of the day, Nortel could become the more efficient, quick-moving entity with strong management and a clear strategic vision but it will not matter if its technology and services don’t resonate in the marketplace. If rivals such as Cisco, Juniper, Nokia, Ericsson, Huawei and Alcatel have better products and/or better prices, Nortel could find itself spinning its wheels. If Mike Z. wants to come out looking like a hero, Nortel needs to revitalize its technology portfolio and create new tools to attract customers. This is the only way Nortel is going to grow sales and profits.