Comments on: Is Avaya the Logical Buyer for Enterprise? http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/ All the News about Nortel Networks Thu, 09 Feb 2012 03:34:00 +0000 hourly 1 By: bechapes http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-31319 bechapes Thu, 02 Jul 2009 06:11:36 +0000 http://www.allaboutnortel.com/?p=2538#comment-31319 Avaya is probably the worst buyer for Nortel amongst the bidders but namely for every Nortel customers and employees out there. Avaya's closed architecture means that Nortel customers would have to be forklifted if they didn't leave on their own accord. And Avaya with a large North American footprint doesn't need the employees either. Siemens/Gores on the other hand has a much smaller NA footprint than Avaya and sees it as a strategic area. Not only are their offerings much more open than Avaya, but they need more people in NA which is good for both customers and employees. And the Enterasys and Nortel products while similiar in terms of hardware typically have had their sweet spots in different verticals.<br><br>For the same reason that Nortel walked away from buying Avaya almost two years ago. <br>"messy, fraught with integration issues” RBC Capital Markets analyst Mark Sue<br>"the combination also would have posed significant challenges" UBS Investment Research analyst Nikos Theodosopoulos<br>"UBS imagined $250 million in synergies from a Nortel/Avaya merger over several years, with $50 million to $100 million coming in the first year. Synergies would come mainly from product-related sales, general and administrative expenses but would have been harder to find in product development and supply chain areas" UBS said.<br>"And while Avaya sells most of its gear directly to its customers, Nortel relies much more on resellers, making it harder for the combined company to unify and rationalize its sales channels. Avaya wouldn’t do much for Nortel’s revenue growth, either, UBS said, anticipating nearly 3% growth from Nortel next year and a little more than 4% growth from Avaya." Avaya is probably the worst buyer for Nortel amongst the bidders but namely for every Nortel customers and employees out there. Avaya's closed architecture means that Nortel customers would have to be forklifted if they didn't leave on their own accord. And Avaya with a large North American footprint doesn't need the employees either. Siemens/Gores on the other hand has a much smaller NA footprint than Avaya and sees it as a strategic area. Not only are their offerings much more open than Avaya, but they need more people in NA which is good for both customers and employees. And the Enterasys and Nortel products while similiar in terms of hardware typically have had their sweet spots in different verticals.

For the same reason that Nortel walked away from buying Avaya almost two years ago.
“messy, fraught with integration issues” RBC Capital Markets analyst Mark Sue
“the combination also would have posed significant challenges” UBS Investment Research analyst Nikos Theodosopoulos
“UBS imagined $250 million in synergies from a Nortel/Avaya merger over several years, with $50 million to $100 million coming in the first year. Synergies would come mainly from product-related sales, general and administrative expenses but would have been harder to find in product development and supply chain areas” UBS said.
“And while Avaya sells most of its gear directly to its customers, Nortel relies much more on resellers, making it harder for the combined company to unify and rationalize its sales channels. Avaya wouldn’t do much for Nortel’s revenue growth, either, UBS said, anticipating nearly 3% growth from Nortel next year and a little more than 4% growth from Avaya.”

]]> By: bechapes http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-20180 bechapes Thu, 02 Jul 2009 02:11:36 +0000 http://www.allaboutnortel.com/?p=2538#comment-20180 Avaya is probably the worst buyer for Nortel amongst the bidders but namely for every Nortel customers and employees out there. Avaya's closed architecture means that Nortel customers would have to be forklifted if they didn't leave on their own accord. And Avaya with a large North American footprint doesn't need the employees either. Siemens/Gores on the other hand has a much smaller NA footprint than Avaya and sees it as a strategic area. Not only are their offerings much more open than Avaya, but they need more people in NA which is good for both customers and employees. And the Enterasys and Nortel products while similiar in terms of hardware typically have had their sweet spots in different verticals.<br><br>For the same reason that Nortel walked away from buying Avaya almost two years ago. <br>"messy, fraught with integration issues” RBC Capital Markets analyst Mark Sue<br>"the combination also would have posed significant challenges" UBS Investment Research analyst Nikos Theodosopoulos<br>"UBS imagined $250 million in synergies from a Nortel/Avaya merger over several years, with $50 million to $100 million coming in the first year. Synergies would come mainly from product-related sales, general and administrative expenses but would have been harder to find in product development and supply chain areas" UBS said.<br>"And while Avaya sells most of its gear directly to its customers, Nortel relies much more on resellers, making it harder for the combined company to unify and rationalize its sales channels. Avaya wouldn’t do much for Nortel’s revenue growth, either, UBS said, anticipating nearly 3% growth from Nortel next year and a little more than 4% growth from Avaya." Avaya is probably the worst buyer for Nortel amongst the bidders but namely for every Nortel customers and employees out there. Avaya's closed architecture means that Nortel customers would have to be forklifted if they didn't leave on their own accord. And Avaya with a large North American footprint doesn't need the employees either. Siemens/Gores on the other hand has a much smaller NA footprint than Avaya and sees it as a strategic area. Not only are their offerings much more open than Avaya, but they need more people in NA which is good for both customers and employees. And the Enterasys and Nortel products while similiar in terms of hardware typically have had their sweet spots in different verticals.

For the same reason that Nortel walked away from buying Avaya almost two years ago.
“messy, fraught with integration issues” RBC Capital Markets analyst Mark Sue
“the combination also would have posed significant challenges” UBS Investment Research analyst Nikos Theodosopoulos
“UBS imagined $250 million in synergies from a Nortel/Avaya merger over several years, with $50 million to $100 million coming in the first year. Synergies would come mainly from product-related sales, general and administrative expenses but would have been harder to find in product development and supply chain areas” UBS said.
“And while Avaya sells most of its gear directly to its customers, Nortel relies much more on resellers, making it harder for the combined company to unify and rationalize its sales channels. Avaya wouldn’t do much for Nortel’s revenue growth, either, UBS said, anticipating nearly 3% growth from Nortel next year and a little more than 4% growth from Avaya.”

]]> By: tiredofitall http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-20021 tiredofitall Mon, 29 Jun 2009 20:02:25 +0000 http://www.allaboutnortel.com/?p=2538#comment-20021 Whether Avaya is the best case for NA employees is open to debate. I am an NA enterprise voice employee and we have been living in fear of an Avaya purchase for some time now. Of all the bidders it is my understanding that Avaya has the greatest amount of overlap, and they are clearly interesting more in our install base than our products. Siemens, on the other hand, is looking to expand their North American operations. <br><br>IMHO, the best case is a private equity firm that thinks it can make a go of the business provided a smart management team is in place. But hey, I'm looking out for my own best interests at this point... Whether Avaya is the best case for NA employees is open to debate. I am an NA enterprise voice employee and we have been living in fear of an Avaya purchase for some time now. Of all the bidders it is my understanding that Avaya has the greatest amount of overlap, and they are clearly interesting more in our install base than our products. Siemens, on the other hand, is looking to expand their North American operations.

IMHO, the best case is a private equity firm that thinks it can make a go of the business provided a smart management team is in place. But hey, I'm looking out for my own best interests at this point…

]]> By: PM_Guy http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-20013 PM_Guy Mon, 29 Jun 2009 18:04:11 +0000 http://www.allaboutnortel.com/?p=2538#comment-20013 As I mention a deal was expect Friday but did not close. It will likely occur within the next couple weeks now.<br><br> <a href="http://www.theglobeandmail.com/report-on-business/nortel-set-to-sell-key-unit/article1199611/" rel="nofollow">http://www.theglobeandmail.com/report-on-busine...</a> As I mention a deal was expect Friday but did not close. It will likely occur within the next couple weeks now.

http://www.theglobeandmail.com/report-on-busine…

]]> By: How_long http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-20008 How_long Mon, 29 Jun 2009 16:29:05 +0000 http://www.allaboutnortel.com/?p=2538#comment-20008 If its not sold in one piece it will be sold in bits. It really needs to happen soon. The longer it is left hanging the less confidence there is. <br>I agree it is very bad for employees whatever happens. Sad days. If its not sold in one piece it will be sold in bits. It really needs to happen soon. The longer it is left hanging the less confidence there is.
I agree it is very bad for employees whatever happens. Sad days.

]]> By: borissss http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-20006 borissss Mon, 29 Jun 2009 15:34:25 +0000 http://www.allaboutnortel.com/?p=2538#comment-20006 It depends on what site you are on and who will buy Enterprise.For NA employees Avaya will be the best-acquirer.But if Siemens enterprise buys Enterprise,they would prefer cheaper countries esp Turkey. It depends on what site you are on and who will buy Enterprise.For NA employees Avaya will be the best-acquirer.But if Siemens enterprise buys Enterprise,they would prefer cheaper countries esp Turkey.

]]> By: Guy13 http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-19992 Guy13 Mon, 29 Jun 2009 11:36:57 +0000 http://www.allaboutnortel.com/?p=2538#comment-19992 I am wondering what will happen to the employees if Nortel Enterprise will be sold to one of those companies. I am working at one of the affected sites and people are very concerned. Many are already looking for jobs and are scared of what may happen. Is too bad to fire people, they are working hard here and are doing great job. Without the employees working here, I believe that Enterprise would not be even close to what it was. We are afraid that those who will buy Enterprise will layoff many of us. Do you believe that we should worry? Who will be a better choice for the employees? What will happen to us if Enterprise will not be sold to anyone? I am wondering what will happen to the employees if Nortel Enterprise will be sold to one of those companies. I am working at one of the affected sites and people are very concerned. Many are already looking for jobs and are scared of what may happen. Is too bad to fire people, they are working hard here and are doing great job. Without the employees working here, I believe that Enterprise would not be even close to what it was. We are afraid that those who will buy Enterprise will layoff many of us. Do you believe that we should worry? Who will be a better choice for the employees? What will happen to us if Enterprise will not be sold to anyone?

]]> By: netas http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-19991 netas Mon, 29 Jun 2009 11:31:24 +0000 http://www.allaboutnortel.com/?p=2538#comment-19991 Thanks,<br><br>but, its very minimal compared to annual sales of around US$150 mn. as i said VoIP is the key here.<br><br>Netas Mcap is around US$100 mn whereas the company has no debt but US$70 mn cash and US$80 mn worth of land. in addition, 1Q2009 net income US$5 mn. <br><br>these were my main investment point.<br><br>all the best,<br><br>many thanks Thanks,

but, its very minimal compared to annual sales of around US$150 mn. as i said VoIP is the key here.

Netas Mcap is around US$100 mn whereas the company has no debt but US$70 mn cash and US$80 mn worth of land. in addition, 1Q2009 net income US$5 mn.

these were my main investment point.

all the best,

many thanks

]]> By: NTblinker http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-19990 NTblinker Mon, 29 Jun 2009 11:15:13 +0000 http://www.allaboutnortel.com/?p=2538#comment-19990 In stock market news regarding Netas, it was said that the CDMA deal would affect $1.7 M per year of Netas's software export business. In stock market news regarding Netas, it was said that the CDMA deal would affect $1.7 M per year of Netas's software export business.

]]> By: netas http://www.allaboutnortel.com/2009/06/26/is-avaya-the-logical-buyer-for-enterprise/comment-page-1/#comment-19989 netas Mon, 29 Jun 2009 10:13:11 +0000 http://www.allaboutnortel.com/?p=2538#comment-19989 thanks for the very explanatory answer :) :) thanks for the very explanatory answer :) :)

]]>