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    Roese Blogs on Nortel 2008

    By Mark Evans | January 15, 2008

    John Roese-1
    Nortel CTO John Roese has posted his first blog post in a month (John: someone’s got to monitor you!), and he provides a nice overview on what’s happening on the telecom landscape and how Nortel is positioned to, of course, capitalize on it.

    Here’s one paragraph that caught my attention:

    “And, we will see the IT and telecom worlds converge in ways we have never seen before …the reason we chose to partner with IT companies like Microsoft and IBM rather than merge with telecom companies that only duplicate our skills. In fact, we are already seeing telecom services such as presence, voice, conferencing and collaboration become web services embedded in a wide range of classic enterprise applications (CRM, ERP, healthcare systems, hospitality…).”

    So, how should you read this paragraph? Does it suggest Nortel is leaning more towards partnerships these days than acquisitions? If so, it would be a little surprising given how much Nortel was talking about its willingness to make a move just a few months ago.

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    Topics: Blogs, Executive Suite |

    Viewing 5 Comments

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      typical Roese hot air.
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      Boy there's not much to left to say from reading John's blog. It looks like Nortel is trying leverage partnerships in the larger war against Cisco. The question is why would anyone trust their enterprise infrastructure to someone other than IBM, Microsoft, Cisco or EMC if those are the respective leaders in each of their spaces.

      Just my humble opinion, but technology is a space where the margins will thin for those companies that need to survive this downturn. Companies that were barely making money to begin with will find it harder to survive while companies that are flush with cash and market share will take what's left of the market. This is bad news for Alcatel/Lucent, Nortel, Siemens, Avaya and good news for Juniper and Cisco.

      By the way, slowdowns are usually the most terrible time to try and make comebacks. My guess is there will be wholesale consolidations and changes to many industries because of this global credit crisis. Those selling to energy and commodity companies will do the best as inflation rises and those companies have the most cash to deploy. Any heavily consumer based tech company will not do well given the slowdown in consumption in the United States.

      2008 will be an interesting year indeed. Good luck to all !
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      1. Who'd want to be acquired by them?
      2. Who would take their "money" (stock)?
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      I suggest you do some research on SOA to better understand what's going on with the convergence between IT and Telecom. Consider Office Productivity software for a moment. I don't know the actual market share number, but it is safe to say that Microsoft and IBM own a huge portion of that market share (80%+). If you have the opportunity to attach Telecom Services to Office Productivity software for 80%+ of the market, then that's a reasonable bet to make.

      All this suggests is that NT is willing to partner with IT companies when broader based solutions can be brought to market, such as Unified Communications. If there is opportunity to fill a Telecom product/technology gap, then they will also consider an acquisition.
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      Is nortel now a player in SOA? The first I heard of their involvement was mid 2007. Then finally an websphere interface last November. I think it is a standard interface with very little out of the box though.

      I agree that nortel has little chance of really compeating with MSFT or IBM andf they are better off partnering. So, I think it means they will partner (as best they can) in this area and maye aquire in another (if funds permit)
     
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