According to Channel Web, Juniper Networks is wooing Nortel’s partners at a time when Nortel continues to be mired in uncertainty.
In a letter to Nortel partnership, Frank Vitagliano, Juniper’s senior VP of worldwide channels says:
“At Juniper Networks, we understand it can be challenging to navigate the current business landscape while continuing to add value to your customers. In today’s troubled climate, you may have concerns about your continued ability to provide high-performance networking solutions to your customers. We want to help.”
looks like they are saturated and in flat or declining mode. they succeeded in taking out two major nortel products with a partnership 9 years ago. they pretty much burned the bridge with nortel. so I dont think juniper will get anything.
Happily Retired Cisco Exec
Cisco has already been engaged in taking out Nortel's channels. There are many ways to do this. Juniper is simply following Cisco's lead. It is an obvious play against a distressed competitor with poor channel management and programs.
As the alternative Cisco, Juniper will simply incent its channels to identify and take out the remnants of Nortel's installed base of router and switch customers. At the same time, it will attempt to sign up whatever Nortel channels are left standing and incent them by having them push Juniper products into their installed Nortel customer base.
Nortel does not have the cash to incent its chanel partners and potential partners to aggressively sell Nortel, and it does not have the cash to finance distributor inventories. This is just a sign of the disaster that will be Nortel's Q4 number.
Predatory channel activities against a distressed company is one of the clear signs that Nortel's competitors view Nortel as the helpless walking dead.
Bill
Avaya too.
broadbandbill
W or L? Not clear yet...--bb
broadbandbill
So here’s the score card :
Domestic Winners: Cisco and Juniper; Markets: Telecom and Enterprise (2)
Foreign Winners: Huawei, ZTE Markets: Telecom and Wireless (2)
Any questions about too many channels/markets? ..--bb
copper_athlon
Nortel needs to stop reporting those tax charges or it's going to shoot it own head (not own foot) because the bad name like this "Last month, Nortel posted $3.4 billion in losses for the third calendar quarter."
Observer
I guess Juniper took the advice of those geniuses on Wall Street to get where it is. Pray tell broadbandbill, why then would they be going after Nortel's channels ? Wasn't it those same channels you referred to that were too complex and in too many markets ?
broadbandbill
Observer,
Not all Wall Street players are idiots. Case in point:
Juniper is a player in Telecom and Enterprise ONLY, which is where the synergies are. For info, they entered the enterprise market a decade AFTER they established dominance in the Telecom space and had a solid balance sheet. And, for further info, it was George Riedel, Nortel’s current CSO that SUCCESFFULY got Juniper into the enterprise market (during his two-year tenure at Juniper). Prior to that GR was at McKinsey. Hope that clarifies things for you…--bb
less
I get it. Secular bear, right?
Observer
That's right. Check out that Cisco and Juniper stock price. Equities always go thru valuation adjustments from bubble to bust. Its funny watching the Juniper VP quoted above say he somehow understands the challenging business climate/landscape as if this is your typical recession/recovery cycle. He has no clue as to how ugly it is going to get. For those in Canada on this board, it is going to get very ugly in residential and commercial real estate for you and the rest of the world. The world is about 12 months behind where the US consumer which drives the global economy is.
puddintane
The term "secular bear" rather reminds me of a biorythm:
"A biorhythm (from Greek βιορυθμός - biorhuthmos) is a hypothetical cycle in physiological, emotional, or intellectual well-being or prowess. "Bio" pertains to life and "rhythm" pertains to the flow with regular movement. Biorhythms theory has no more predictive power than chance, and has been labeled a pseudoscience by skeptics."
Juniper Going After Nortel Vendors
According to Channel Web, Juniper Networks is wooing Nortel’s partners at a time when Nortel continues to be mired in uncertainty.
In a letter to Nortel partnership, Frank Vitagliano, Juniper’s senior VP of worldwide channels says:
“At Juniper Networks, we understand it can be challenging to navigate the current business landscape while continuing to add value to your customers. In today’s troubled climate, you may have concerns about your continued ability to provide high-performance networking solutions to your customers. We want to help.”
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