Thoughts on Avaya-Nortel Deal

With Avaya’s purchase of Nortel’s enterprise business now officially complete, The Telecom Blog’s Jeff Wiener has some thoughts about what happens now.

He writes that early indications suggest Avaya has a good handle on folding Nortel’s enterprise unit into the fold, as well as the market forces at play. “Now customers and dealers have to buy into the strategy.”

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  • GoProto
    Well, here is what some people think about Avaya's possibly perilous future in light of this deal and its not looking pretty.

    http://www.computerworld.com/s/article/9142586/Avaya_credit_rating_dropped_to_junk_status_in_wake_of_Nortel_buy
  • joelwhackedme
    I certainly hope that Avaya takes a good hard look at how things have been structured for Enterprise Nortel, and that they realize the model is destined to fail. If they have any common sense, they can see that the current Enterprise model is simply a numbers game and does nothing to enhance and further the support of the customers (not to mention the damage the current processes did to the employees). From what I understand, Avaya was impressed with whatever BS Hackney presented to them and said they are interested in considering the continuation of these adsurd processes that helped push Nortel the wrong way. The hiring of a$$wipe Hackney has me worried.
  • freqmgr
    Is Hack already planning how to move into the top spot........probably already has a plan. Maybe after he takes over he can hire Mike Z as an advisor.
  • Moose_Chaser
    Good-bye, Nortel and good riddance !

    This is the LAST time I will ever read this blog,
    because I am off to Avaya on Monday ! <phew !="">

    To those of you left: Best of Luck. I know how
    incredibly gut-wrenching this whole MESS has been
    and I hope it ends for you soon.

    MC</phew>
  • less
  • GoProto
    less - did you see my post today re: Avaya? check out their newly acquired "junk status" credit rating ... any surprise ? Maybe they will be the next ship to sink.. I think the Nortel corpse may very well be a curse to whomever comes into contact with it's remains...
  • bankrupt_bob
  • ntpurgatory
  • bankrupt_bob
    http://www.youtube.com/watch?v=W91RCYt94wI

    This could go on .....forever .... ;>)

  • legume
    This week Avaya firing people who it had handed job offers to just a month earlier
  • exnt2
    yah right. u think avaya is as dumb as Nortel?
  • 27539
    Remind us again who hired Hackney?
  • TongueInCheek
    First day of employment at Avaya is Monday. So, how could Avaya fire Nortel employees on Friday? Please explain that to us.
  • legume
    That's right. To be more precise, Avaya called several people and told them not to come on Monday. So they were laid off by Nortel at Avaya's request. Around 40% of those with Avaya's job offers.
  • TongueInCheek
    What I understand has happened is that all Nortel Enterprise employees received an Employment Termination letter from Nortel for an effective date of Dec. 18th. That releases any legal requirements Notel has for Enterprise employees. Then many Nortel Enterprise employees received a Job Offer letter from Avaya about 6 weeks ago and had a number of days to accept or reject the offer. Anyone that rejected the offer would then no longer be employed by either Nortel or Avaya at this time.
  • scalppeeler
    So what is legume talking about.
    What you and he are saying are totally separate items.
    Is legume wrong.
  • less
    Id like to know too. Would I be surprised if Nortel and/or Ayava simply lied to anyone? Nah.
  • GoProto
    Legume's statements don't jive at all.
    1. says Avaya called them, said don't come in
    2. Says Nortel laid them off (made the calls? )

    Uh, who took the action, and when? How can you lay off people at someone else's request and then say that the someone else called them?

    Chaotic and opposing statements=no validity
  • scalppeeler
    Legume dropped off.
    Guess he was blowing smoke.
    One thing to lie.
    Another to be liable.
  • legume
    Too bad to see you guys are so arrogant and distrustful on mere grounds that I didn't quench all of your idle curiosity right away. Too bad to see you're so NA-centric not realising things may work differently under other legislations. Also not realising it's at times not appropriate to ask for details people being terminated. This is a small EMEA office (small by NA standards) and I don't want to disclose more. Half of the enterprise employees were fired a while ago and the other half received welcome letters from Avaya, I never knew to what extent they were binding. Last week the guys were busy preparing for their first day in Avaya this Monday. But something went terribly wrong and some received PHONE CALLS FROM AVAYA telling them not to come because they would be terminated. I didn't ask for details because it was just not appropriate. People say they got an option to be terminated either at Avaya, or at Nortel on the same conditions, apparently they all opted for the latter. The termination was carried out properly and the guys received what they were entitled for under local labor law (we don't have pension/severance, just a lump sum). The whole point of my message was that all this was initiated by Avaya so obvously they changed their mind at the very last minute.
  • less
    Its all a lie perped by Cisco as no Chapter 11 filing is even imminent
  • less
    Zafirovski said the creditor protection filing was necessary "in order to undertake a comprehensive business and financial restructuring. This process will enable Nortel to become the highly focused and financially sound communications leader it should be."
  • scalppeeler
    This seems a little strange.
    You'll have to provide more details and examples.
    Employees of the wireless, enterprise and men division have all been auctioned off, with only cvas remaining so far as big LOB's are concerned. These employees will be or have been given offers of employment from their potential employer. I am sure the letters have some contractual obligations such as tenure of employment etc but I don't know. What would the typical offering letter say?. I have heard employees have limited time to accept or reject the offer. If you accept the offer you are off nortels books legally speaking. To be given an offering letter and accept it only to have the company who gave you the offer pull it back or reneg on it just doesn't make any sense, rationally or most of all legally if you get my drift here from a nortel/new company perspective. I think you are missing alot of information here. Where were all these employees working who were given offers and then having them taken away employed. What country. What job were they doing.
  • Nortel watcher
    where do you get this from propeller head?
  • legume
    From my enterprise colleagues whose last employment day was this friday...
  • Lookahead
    "There is a sense of irony at the time of writing this though. It seems that Computer Dealer News, a Canadian Technical Publication, has awarded Nortel’s former CEO Mike Zafirovski as the number ONE newsmaker of the year. It of course doesn’t reference him as the number ONE CEO, or number ONE decision maker. It references him as the NUMBER ONE newsmaker. And yes, that he was. "

    I hope in 2010 year there will be a class-action law suit catching Mike Z, making him again a news star!

  • protosphere
    Why does he believe early indications are positive in that Avaya is quick and smart enough to sell customers and dealers while keeping competitors at bay?

    There is this most pressing matter of profitability after Nortel already tried with cutting to the bone and flesh...and restoring lost markets won't be easy,especially after Nortel's lost markets and stigma after folding. This is not a good torch to run with in my view.

    I also hardly think Nortel's traditional hype like telling them "there is no better time to buy" will restore or furnish credibility to anyone either. As a private company, I guess they can say anything they want.

    The logistics of assimilation have yet yo be proven this early in the game too.

    It is a telecom gamble, a wild card...now will struggling Avaya's strategy win like Cisco's or lose like Nortel's... after all it is Nortel they are buying..

    I wish he said why he feels early indications are positive, it may have been enlightening. =)
  • freqmgr
    With the Nortel "leadership" that Avaya has brought on board they may be even further hard pressed to make this work. Of course they can always turn total control of the business over to those "experienced leaders"!
  • bankrupt_bob
    Avaya yourself a merry little Christmas!

    <<[Avaya] yourself a merry little Christmas, it may be your last,
    Next year we may all be living in the past
    [Avaya] yourself a merry little Christmas, pop that champagne cork,
    Next year we will all be living in [a box.]

    <<no <br="" days="" days,="" golden="" good="" happy="" like="" of="" olden="" the="" times="" yore,="">Faithful friends who were dear to us, will be near to us no more.

    <<but <br="" all="" allow,="" at="" be="" fates="" if="" least="" the="" together,="" we="" will="">From now on we'll have to muddle through somehow.
    So [Avaya] yourself a merry little Christmas now.>>

    =============================================
    With sincerest apologies to:
    http://en.wikipedia.org/w/index.php?title=Special:Cite&page=Have_Yourself_a_Merry_Little_Christmas&id=332510116

    </but></no>
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