Nortel’s Phil Edholm has a blog post featuring an intriguing question: whether a slowdown in economic growth – or negative growth – will lead to a delay in the adoption of new technologies.
Naturally, Edholm doesn’t think so given he’s in the business of selling products and services. Personally, I think overall investment will decline as customers become more pragmatic and cautious/conservative with their IT budgets. This is going to be bad news for telecom suppliers – be it Nortel, Nokia, Alcatel-Lucent, et al – and, of course, investors seeking growth to fuel stock price performance.
That said, there could be pockets of growth as customers look for ways to become more productive and cost-efficient. The question is whether Nortel can leverage those pockets with its technology portfolio.
Mark, think like a customer for a moment. If one of your suppliers presents you with a proposal that can improve a business process and deliver a solid ROI for your books, would you give it serious consideration assuming you have the capital or credit to proceed?
The challenge is finding the right ROI and business issue that can be solved. I'm more concerned about carrier infrastructure build-outs that typically get financed through credit markets given the current state of the credit markets.
exnt2
Edholm does not know what he is talking about half the time. Investment is slowing so unless there is a need, a really good value propostion with clear benefits such as ROI and new services, technology adoption will slow. Thats why Bell and Telus put in billions to go from their old wireless network to HSDPA from Nokia and Huawei.
PBT is going to disappear. Definitely nobody is going to upgrade or even rip out equipment unless benefits are proven e.g. energ savings. So on a positive note, Nortels 40G could be adopted (had it not announced selling the unit prematurely) as it uses the same infrastructure. Kudos when its needed.
There will be major discounting now which will impact margins. Even mghty Cisco will see its revenues and margins affected this year and next.
less
So how about that ATCA stuff? It was the up-and-coming DMS replacement back in my day, but I hear its loud, an energy hog, fickle and not necessarily standarized throughout the industry. Also, theres $1000 cards, etc.
less
ATCA. There ya go:
Best Infrastructure – Nortel, VSE Second Generation ATCA Platform
Best Unique Customer Application – Nortel, AdvancedTCA ALL-IP MSC Server
Best Hardware – RadiSys, Promentum® ATCA – 9100 Media Processing Blade
Best Software – VirtualLogix, VLX vHA 1.1 Carrier Grade Virtualization
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Probably one of the hardest things anyone can do is try and learn something new. Congrats to anyone who tries.
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Probably one of the hardest things anyone can do is try and learn something new. Congrats to anyone who tries.
Will the Economy Stall Technology Adoption?
Nortel’s Phil Edholm has a blog post featuring an intriguing question: whether a slowdown in economic growth – or negative growth – will lead to a delay in the adoption of new technologies.
Naturally, Edholm doesn’t think so given he’s in the business of selling products and services. Personally, I think overall investment will decline as customers become more pragmatic and cautious/conservative with their IT budgets. This is going to be bad news for telecom suppliers – be it Nortel, Nokia, Alcatel-Lucent, et al – and, of course, investors seeking growth to fuel stock price performance.
That said, there could be pockets of growth as customers look for ways to become more productive and cost-efficient. The question is whether Nortel can leverage those pockets with its technology portfolio.
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