Cisco Attacks Nortel’s Green Initiative

You had to figure it was only a matter of time before Cisco responded to Nortel’s energy conservation/green marketing strategy, which took direct aim at Cisco.

Cisco had put together five videos, which are cheeky but leave no doubt about Cisco’s intention to debunk Nortel’s claims. Here’s the first of the five videos, which were put together by “Career Limiting Productions”.


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  • nortel_R&D

    In this video, it claimed Nortel's 4548GT-PWR only has 24 PoE ports. On a Nortel official document, it clearly specified that 4548GT-PWR has 48 10/100/1000 PoE ports:

    http://www.nortel.com/products/01/passport/8600…

    Who is spreading the FUD here?

  • protosphere

    This green campaign proved successful for Nortel but it was grossly misleading to the contrary for the same amount of work done.

    Cisco just proved what was exposed right here on All About Nortel in an earlier thread.

    Nortel quoted the planet's entire industrial energy consumption not just telecom and in the billions pf dollars, A fear campaign where they then went on to offer first year energy savings as a rebate to buy Nortel product instead.

    heh, ironiic Nortel tries to manage others costs when they can't manage their own

    Only way Nortel is greener than Cisco is with envy or management's inexperience it seems.

    Is it rude to ask if Nortel is a chronic liar? Seems that not only is Nortel's accounting and forecasts lacking credibility but their very campaigns! I would go so far as to say this was a desperate and unethical slander with intent post one of the largest frauds while headed to insolvency and so many still there. I just shake my head wondering what's next in this hysterical saga.

    How could Cisco sit back and disregard the fabrications than dismiss them, just as it as Gary had done. Seems they have more lies than truths transpire, …wait, come to think of it, what truths?

  • protosphere

    “who is spreading the FUD here? “

    yes who, let's expose the truth here too

    This video never claimed “Nortel's 4548GT-PWR only has 24 PoE ports” as you claim but that Nortel powers only 24 of the 48 ports

    Furthermore, the video “clearly specified” if they were to compare apples to apples by firing up all 48 ports on Nortel's box, this would require Nortel's “external power supply” which would make Nortel's power consumtion and numbers”way worse”

    got it? rewatch the video to see if you missed this
    If not, never mind…I do not want a reply

  • broadbandbill

    “Don’t start a fight unless you know you can win” — Sun Tzu.

    Nortel’s ‘green’ campaign was a good idea and could have worked if they took the high road. Unfortunately, they picked on the school bully and now they will be paying for it…–bb

  • less

    24 ports are typically reserved for…. developing countries like Nigeria.

    Plus the port lights do turn green when linked and “enabled”.

  • The Psychiatrist

    bb,

    that depends on how cheap in turn Cisco reacts to the Nortel campaign,the one thing that can not be taken away from Nortel is the fact that they beat out Cisco on being first to market with promoting the awareness of the ever increasing energy costs that companies are faced with in running their IT networks and with all the hype about going green,this is more likely to leave a positive impression when customers think of Nortel's ad campaign.

    Cisco can counter Nortel's claims about their switches using less energy than their own,but there's a fine line that Cisco should be careful not to cross,otherwise customers may view Cisco's attack on Nortel's claims as an admission of guilt and further award merit to Nortel's claims.

    That's the beauty of being first to market with an idea or concept,where challengers may be seen as trying to attack the advantage that a” first to market” has,or if another company tries a similar approach with their own campaign this can also be seen as an endorsement to the fact that the first to market has an idea that is favourably acknowledged by their competitors.

    it happens all the time!

  • West

    yawn…cheesy production…could have had a better background score….why dont we see a comparison of their IP Phones as well..most of their 79xx series IP phones consume more Idle watts (approx. 5 watts more) than the equivalent Nortel phones. the numbers quickly add up if you have an mid-size enterprise. cherry pickin some blades and doing some marketing pranks..thats typical of Cisco.

  • protosphere

    To claim the “numbers quickly add up” in a “mid-sized enterprise” does not strike me as significant, if what you even claim is true of course. Especially if quality or features favor another let alone most importantly confidence in support, like they will even be around next year.

    For example, for every 240 IP phones, this would consume 120W more power? Right? As much as a light bulb, where maybe Mike's experience with GE helped with this idea =)

    This splitting hairs is hardly worth mentioning once then Nortel's PR traditionally announces anything it can so who knows why or how could they have missed more green IP phones, again, if this held any merit given their honesty or achievements.

    The “marketing prank” as you call it is indeed a fitting term but for Nortel not Cisco. Nortel misled not comparing energy use for the same amount of work being done not Cisco. And like I said this was dismissed here early on. I wonder how customers will feel when this become public, maybe acquire that shareholder look about them.

    Nortel took on the offensive on a desperate move that worked. However, Cisco has bigger bucks to advertise its counter claims with in audio visual proof.

    Another Nortanic foolish move in face of what they claimed as untrue with their struggle to regain credibility long lost. Misleading with intent that makes it fraudulently unethical, without intent, incompetent or stupid, either way Nortel loses …yet again.

    And who's cheesy production, outsourced Nortel's or Cisco's products? wake up, why you yawn?

    Nortel and Cisco use to spit at each other behind closed doors and Nortel could not have picked a worse sleeping giant in the boat they are in.

    This is all just more bad news for Nortel. They should have thought about this earlier but since when have they ever done anything right,

  • puddintane

    This ever so mildly cribs from the Apple commericals that have the hip gamer geek (literally) dressing down Microsoft, depicted as a shrill, even desperate lil accountant nerd.

  • puddintane

    …and she looks and acts a tiny bit like Jennifer Aniston, who is high maintenance, according to Brad Pitt. Who is sooo hot. And a global villager.

    That does it, I'm buying Nortel and Apple exclusively from here on in.

  • Fins

    Mild. Hardly an attack by Cisco.

  • less

    Um, the energy that chainsaw just wasted could've fed a Nigerian family for a week.

  • Curious

    You have serious issues.

  • notsure

    bb,

    If you're going to quote people, the least you can do is quote them properly on not just quote what you think was said. The proper quote from Sun Tzu I believe you are referring to is:

    “He will win who knows when to fight and when not to fight.”

    Otherwise how can we trust that everything else you say isn't distorted as well. Like the time you said you wouldn't post here anymore.

  • RYLONDO

    Why does CSCO even care? If I was CSCO I wouldn't even address a company that had less then 1/400th of my market cap.

    It is sort of like Pepsi making an ad campaign against Faygo….

  • Should Have Sold in Feb 2004

    You must be a Cisco mole!!! NO ONE SHOULD LISTEN TO YOU!!!

  • 1derY

    Is that John Roese in the ad ?…
    Lousy ads that's all I can say…Clearly Nortel is making Cisco thinks twice.

  • notsure

    You mean:

    “Whoever is first in the field and awaits the coming of the enemy, will be fresh for the fight; whoever is second in the field and has to hasten to battle will arrive exhausted.” – Sun Tzu

  • Should Have Sold in Feb 2004

    How can you say “Nortel quoted the planet's entire industrial energy consumption”? Where did you learn this? Total industrial energy consumption is in the $Trillions. AGAIN, I THINK YOU A CISCO MOLE…BE GONE !!!

  • Should Have Sold in Feb 2004

    MAKE THAT YOU'RE A CISCO MOLE!

  • less

    Cisco let some kids talk trash about “gaming” and “video” in response to Nortel's somber suits talking deep green?
    Sure enough, I go to youtube and find Nortel offering up somber guys in suits talking deep green:

    http://www.youtube.com/watch?v=CjqZ4t1fy2Q

    “Nortel started its path to green 10 years ago. ” Eric Lauzon, CIO Asia, Nortel.

    G-g-golly. 10 years of green. Alas, he talks funny, so he must be stupid.

    Instead check out the bada$$ background score on Nortel's green energy ad:

    http://www.youtube.com/watch?v=Dj8UzE7ahQE

  • less

    If anything truly bad can be said about them damn Yankees its that with gas falling back under $2, they're gonna stop giving much of a crap about their electric bills.

  • less

    So what is Nortel's chummy business partner, China, doing?

    http://www.bloomberg.com/apps/news?pid=20601080…

    “China, the world's second-largest energy user after the U.S., is accelerating plans to cut fuel prices for the first time in two years as the nation's economy slows and oil costs fall, the country's top planner said.
    Lower fuel charges will help stimulate growth in the world's fourth-biggest economy.”

    This will help Nortel. Global warming be damned. So what say Nortel's buddies in, say, India about this “global warming” stuff, anyway?

    http://www.atimes.com/atimes/South_Asia/JK25Df0…

    MUMBAI – A controversial United Nations report claiming “atmospheric brown clouds” generated by Asia are harming the world's climate, agriculture and health has created a storm of controversy in India, which has slammed it as part of Western pressure on Asia's efforts to counter global warming.

    The brown cloud was more pointedly called the “Asian brown cloud” in an earlier United Nations Environment Program (UNEP) report in 2002, before protests from India and China led it to be changed to the politically-correct “atmospheric brown cloud”.

    The new report is part of US-led Western pressure on India and China to accept more responsibility for global warming and restrict greenhouse gas-emitting industries, say Indian officials. Asia's economic powerhouses, in turn, blame Western nations for being guiltier of poor global warming practices and refusing to put the brakes on industrial development.

    The earlier report inspired sensationalist headlines such as: “'Asian brown cloud' casts shadow on US weather” (Chicago Tribune May 7, 2004); “'Asian Brown Cloud' menaces the world” (International Herald Tribune August 13, 2002) and “Asia's killer pollution cloud may be heading for Europe” (Evening Standard, London, August 12, 2002). “

    Did anyone notice any smog over Beijing during the Olympic Games?

    Well, then, case closed: Nortel supports green, period.

  • broadbandbill

    notsure,

    Indeed, I was only paraphrasing because the original quote sounds like bad English and there is enough of that on this blog. Also, that Betty Ford thing did not work out so well, as you may have noticed I had a major relapse over the weekend; back to Step 1.

    However, regarding the validity as well as the accuracy of my comments, you can take that to the bank, which will not require a government bailout; I assure you. What bb knows is based on hard-core, street-level, battle-tested telecom experience spanning over a decade against competitors large and small, including Cisco. The end results are insights into what to do and, equally important, the wisdom of what NOT to do! In fact, I would argue the latter is even more important than the former. Just take note of what Gary (aka ‘Happily Retired Cisco Exec’) says about my comments.

    Collectively, Nortel’s management has experience but lacks both insights and wisdom because they never really fought at the street-level; historically, their experience is limited to only supporting the ‘street fighters’ (read: flow processes).

    The trenches are a whole new and a very different ball game for which they are not even remotely equipped to engage…–bb

  • broadbandbill

    Psychiatrist,

    You are mistaken!

    It is a well-established fact that, for the most part, “First Mover Advantage” has not worked so well (Betamax anyone?). The ideal position to be in is “First-to-Growth Advantage”…–bb

  • oldNT

    If Faygo had a better product that would pass a blind taste test…. I bet we would see the Pepsi add compaign the following day.

    Wise Business Words….

    “It's not that the fast eat the slow, or even the big that eat the small, it's the smart that eat the stupid.”

    – Steve Smith

  • x11tech

    Protosphere, you don't know what your talking about (or your drinking the crisco coolaid too much). The 4548GT-PWR can power all 48 ports with POE, unles the power draw exceeds the internal power supply limits. If the power draw exceeds the internal limits, then the external RSPU (remote power supply unit) is required to bolster the available power.

    In practice, you can run all 48 ports with Nortel IP phones without an RPSU. Depending on what you want to do with those phones (and the model phones you are using), the draw from the phones may exceed the internal capacity of the 4548GT-PWR and then you are forced to buy the RPSU.

    If you were to compare apples to apples, and draw more power from the Cisco switch than could be supplied internally, would you even have the option to plug in an external power supply to power the additional devices?

  • Happily Retired Cisco Exec

    This is all much ado about nothing. The reason that Cisco has responded so tongue-in-cheek is that Nortel's “Green' campaign has been a business failure. Nortel can not afford to fund the inventories of stocking distributors. It can not afford to fund any distributor / reseller programs – like extending payment terms.
    Nortel's credit rating prevents any bank from extending short term loans to fund 60 or 90 day receivables from Nortel's distributors and resellers. In this credit environment, no bank is going to fund receivables from resellers in Mexico or Belgium or Turkey or India (especially India) for Nortel. Cisco has a self-funding program. They don't need the banks to fund programs for the distributors or resellers. That is why over the next 3 quarters, you will see a steady decline in the sales and gross margins of Nortel Ethernet Switches and Routers. And of course, no one in Nortel's executive management team understands anything about creating and driving indirect distribution – an expertise that Gary Daichendt demonstrated in Cisco' s hey day.

    The people at Cisco know the Tolly Group very well. Cisco 'created' Kevin Tolly in the early 90s. Tolly was to provide 'independent' testing of performance. At the time, Tolly was literally working out of his garage. Tolly plays for pay and they understand what takes to configure tests. Cisco knew the results could be easily disapproved – and in a way that would make Nortel ridiculous.

    Cisco has always stated that the reason that their products cost more is that they have better functionality, performance, and density. Now Nortel proves that claim – and shoots itself in the foot – by testing a product that claims to have 48 PoE, but can only power up 24 of them without costs. When a company buys a Switch with 48 PoE ports, they expect all of them to function at the same time.

    Light-hearted ridicule is the best response to Nortel's campaign. The reality is that resellers and distributors are not buying Nortel's products so there is no need to respond to Nortel's claims in a manner that might make them look semi-serious. And of course, no one wants to be seen publicly kicking a vomiting puppy when they can simply destroy their resale channel distribution capability.

    The problem with most Nortel business types and followers is that they still understand the reality of distributing and servicing products on a global basis. They still have that old Nortern Telecom DNA. Nortel's BOD had a chance to add Cisco DNA but decided that they wanted to stay with the steady hand of Admiral 'Gilligan' Owens. And the shareholders and employees are paying the price.

  • http://nortelinsider.wordpress.com/ Desk Jockey

    You do realize that The Art of War wasn't written in English, right? That means there are multiple interpretations/translations of that quote to English, don't act like yours is the authoritative one. The important thing is that the meaning is preserved and both quotes mean essentially the same thing.

    In other words, get off your high horse and stop using personal attacks as diversions.

  • energyman

    When Cisco was pushing Green more than a year ago I had asked Nortel executives about marketing energy savings. Most said they did not want to go down that road as power consumption was way higher. Thats why the energy calculator is only on some enterprise boxes. Maybe they do better or not who knows. Cisco marketing is well known for pushing things that do not work so I do not trust Cisco either.

    With sub $50 gas prices, who cares. Americans will go back to their spending ways.

  • exnt2

    what cheap overacting. how about an Oscar nomination.

  • exnt2

    Americans are indirectly responsible. What about the tonnes of plastic junk toys that end up in dollar stores.

    Where are these made – China? Where are the factories – China? Where are the chemicals spewed into the environment – China?

    Now Who gets them made? Western corporations. Who buys them? Western consumers.

    Take responsibility. Just shipping off the manufacturing does not make the West any greener. Bunch of hypocrites.

  • protosphere

    I am not a Cisco mole, why do you presume this?

    Nortel asserts its products use 40% less energy and that the total Cisco energy tax is $6.1 billion over the past five years.

    Not in the trillions /electrical energy.

    for even more insight read more:
    http://www.greentelecomlive.com/2008/09/17/fina…

    Cisco energy tax is not a tax at all, false and misleading, simple as that, this is my point. Nortel lies.

  • less

    I'd except one only if Oscar were made from recycled Indian jute, Chinese rice boxes, and shredded Nortel memos printed on recycled stock.

  • broadbandbill

    HRCE

    “No one in Nortel's executive management team understands anything about creating and driving indirect distribution” – surely you jest :) . Didn’t Hackney come out of GE’s famed school of ?!?!…You comment about Nortel’s DNA is spot on!

    And, since you mentioned one of my favorite high-priced Cisco call girls (Tolly) let’s not forget the other; Fred McClimax (collectively, hereinafter known as ‘Cisco’s Spitzeretts’)…–bb

  • protosphere

    Cisco's doesn't pump Koolaid, they are honest and have done well.

    Nortel lies and has proven to feed us even more kool aid with this Cisco Energy Tax campaign's nonsense. … false and misleading advertising, and Cisco just proved it here

    Nortel's draws more power than Cisco's when all 48 are enabled in standby or under load period.

    Nortel's extra power supply is required is the point when comparing apples to apples. Nortel lies with zero credibility and I can cite endless more examples beyond this if you like to talk koolaid that kills.

    Cisco does not need an extra power consuming supply to power their 48 ports to save up yo 40% more energy, That's horsefeathers – AKA lies.

    Also, how in the world would the Cisco switch require even more power than it was designed for as you claim? The most obvious is usually the most truthful here.

    Just compare where younger Cisco to older Nortel is headed for more proof. Nortel is toast. Cisco makes billions/Nortel loses. Its a poor sport ploy while going down for the count by these frauds.

    Exposing the truth burst bubbles in Cisco's energy tax that is no government instituted tax at all to boot… what terms and what misleading lies from inception, from the intrisic core exposed by extrinsic examples by a successful and honesy company that will be around to service their product

  • The Psychiatrist

    Here you again accusing someone of a personal attack just because notsure pointed out the fact that the quote bb used was not exactly written the way Sun Tzu said it.

    Yet no mention of the fact that bb says that I am mistaken for expounding on the psychology of marketing,when if you read my piece again you'll notice that I don't mention a particular product the way bb points out the failure of Beta video.

    My theory implies that if a company has been succesful in establishing themselves with a first to market idea and turning it into a name brand,then that is when it is usually next to impossible to knock off or out of people's minds.

    Some examples are:

    First fast food-McDonalds
    First facial tissue-Kleenex
    First soft drink-CocaCola

    these are name brands that have shown staying power because they were successful with their first to market approach.

  • Tired

    Do you not understand that “energy tax” is a marketing line? It's not a real tax, and only an absolute fool would believe otherwise. Give it a rest.

  • Tired

    You know, as much as I despise you Protosphere, I should perhaps admit that just maybe you didn't understand “energy tax” because English may not be your first language. If that's the case, my apologies. If not, please refer to my first comment and let it stand as-is.

  • broadbandbill

    Thanks DJ, but I can handle this one, easily :) …–bb

  • Optimist

    broadbandbill,

    Blue Ray triumphed over HD-DVD…both essentially being similar technologies…so First Movers do have an advantage.

  • http://nortelinsider.wordpress.com/ Desk Jockey

    1. “The way Sun Tzu said it” is irrelevant because he never spoke English. Thus refer to my original reply.

    2. The fact that you made no mention a specific product has no bearing on bb's argument. You made a blanket statement that being first to market offers a path to success. Broadbandbill offered a counter point, citing a specific example. Thus he proved your argument wrong with this counter example.

    3. You have provided specific examples of companies that did succeed, though since counter examples exist it does not justify your original blanket statement.

  • Optimist

    Protosphere,

    Every company has its ups and down, you can see that in this financial turmoil today. But that does not mean a company that is down on its luck will not turn around. A good example would be Apple. Nortel is still known for the wonderful work it does in its R&D. Unfortunately, the scandals involving accounting have been a distraction preventing it from leveraging the products that come out of it. But now that these issues have been put behind, the focus will be on marketing the products.

  • NTown

    “Just compare where younger Cisco to older Nortel is headed for more proof. Nortel is toast. Cisco makes billions/Nortel loses. Its a poor sport ploy while going down for the count by these frauds.”

    Speak english much?

  • The Psychiatrist

    desk jockey

    could you not at least have a little more depth to you,other than being a Nortel hater?

    regardless of the fact that Sun Tzu did not speak English,bb's English interpretation of his quote was what notsure was referring to,suppose bb 's English interpretation of Sun Tzu's quote was indeed wrong you were more interested in accusing notsure of a personal attack rather than acknowledge a potential error on bb's part.

    Furthermore if you want to play some kind mediator on this blog, then make sure that you cover both ends of the spectrum,that is acknowledge an inaccuracy from a well known Nortel hater like proto or yes4apple.

    An example from yes4apple was that he stated that Nortel must address their $3b pension deficit immediately or face chapter 11,here is yes4apple's exact quote-

    ” You forgot to mention about $3 bill of Pension Fund deficit which Nortel has to address right away or face the CH11!”

    yet after reading S&P's analyst Ari Bensinger's report on Nortel,he just states that he estimates that Nortel 's pension obligations will top the $250 million that he calculated for 2008 due to the declining asset performance of the fund.Granted Nortel will have to top the $250 million made in 2008,but nowhere does he state that Nortel will have to address the pension deficit immediately or face CH11 as yes4apple suggests.

    You appear to calculate when and where you add in your 2 cents worth on Mark'
    s blog when it supports your own point of view,yet you fall silent when it doesn't.

    Yes4apple's assumption that Nortel must address their $3b pension deficiit is completely inaccurate,yet you were nowhere to be found on correcting his assumption on this?

    The ball is now in your court,this is your chance to prove that your more than just anothert Nortel hater,or I'll know in the future where to categorize you.

  • BamBam

    “Cisco Energy Tax campaign's nonsense” If you don't like a campaign go purchase an energy meter and compare draw from an idle 55xx or even more with a 45xx vs a 3750. It's a fact that the 3750 draws more. If were going to call someone misleading, why would we ignore the statement that 'Nortel will only power 24 of the 48 ports'. NO as has been corrected, Nortel does not support full 802.3af Class 3 power draw on all ports (but Nortel does power all ports), so if you are a business like I've never seen and are putting 48 devices on your switch that all draw 15.4W per, then yes you'll need an RPSU to do that. However we all know those are slim odds, a difference yes, but most customers would in fact save on their bill for electricity and heating by running the Nortel ERS, as outside that very specific scenario – The Nortel will come out ahead… Screw the calculator and put a watt meter on it, then argue your points. Good Luck with that.

    Also while were pointing out differences, Nortel did a better job designing the Power utilization function of their switches. The Cisco puts out power based on a power classification and reserves that much power for that port, where the Nortel simply provides the amount of power required by the device (similar to a wall outlet in your house).

    Made my points without a single personal attack on anyone, imagine that. I'd read the comments more often if this was the rule rather then the exception.

  • yes4aapl

    Yes4apple's assumption that Nortel must address their $3b pension deficiit is completely inaccurate,yet you were nowhere to be found on correcting his assumption on this?
    —–
    re
    confirmed
    it's accurate.
    It's The Office of the Superintendent of Financial Institutions requirement.
    The link to that source was posted here many times.
    Paragraphs showing that were posted here and yet you shot your leg again.
    We can guess how big the deficit is now.
    It's more likely $3 bill or more and less likely its $2 bill or less.
    In other words analysts who expect the deficit below $2 bill are wrong.
    My updated info about PENSION DEFICIT was posted under
    What Mark Sue was thinking when he set up Zero target.
    http://disqus.com/people/yes4aapl/#main
    Cameron said about half the pension plans OSFI oversees were in a shortfall position prior to this year, so are doing valuations annually. That means a majority of Canada's federally regulated pension funds will be required to do a valuation report at Dec. 31 this year, giving companies no leeway to wait to see whether asset values recover over the next year or two.
    ===
    btw
    The Office of the Superintendent of Financial Institutions or OSFI is an independent agency of the Government of Canada reporting to the Minister of Finance created “to contribute to public confidence in the Canadian financial system”. [1] It is the primary regulator of federally-regulated banks, insurance companies, and pension plans in Canada.

  • http://nortelinsider.wordpress.com/ Desk Jockey

    Actually assuming a 5 watt savings per phone, if you had 240 phones then you'd save 1200 watts, not 120, far from a mere light bulb. (But maybe several)

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  • more

    you goofball, those were Cisco marketing interns wrapping up their student project

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