Nortel Networks Launches New Internet Services Strategy in Silicon Valley
Creates Shasta IP Services Business Unit to Drive Development of Industry
Leading IP Services Capabilities for Service Providers in Silicon Valley
SANTA CLARA, CA, July 7 /PRNewswire/ - Nortel Networks (NYSE/TSE: NT) today announced a major expansion of the company's already large presence in Silicon Valley through the creation of the Shasta IP Services Business Unit. Built around the company's recent acquisition of Shasta Networks, the new business unit will play a pivotal role in Nortel Networks strategic initiative to create industry leading IP value-added services capabilities for service providers. The new business unit will be part of Nortel Networks' Carrier Packet Solutions Line of Business.
John Roth, vice chairman and CEO, Nortel Networks, and Clarence Chandran, president, Carrier Packet Solutions, formally opened the new Nortel Networks facilities in Santa Clara today, and spoke to over 100 of the leading luminaries in Silicon Valley. At the event, they detailed how Nortel Networks' expanded presence will impact the carrier market and Silicon Valley, and presented their vision for the future of service provider networks.
The Shasta IP Services Business Unit develops platforms and associated software and operations infrastructure for very high-density subscriber aggregation and management, and the easy creation of managed network services and applications, such as secure virtual private networks, managed firewalls, quality of service policies and application hosting capabilities. Such capabilities will enable service providers to address the small and medium business market and specialized communities of interest such as franchise and dealer networks with customized, managed outsourced network applications. Nortel Networks will capitalize and expand on Shasta's entrepreneurial base at the new Silicon Valley facility to capture this US$23 billion market opportunity. (x)The new business unit will be led by the two co-founders of Shasta Networks, Anthony Alles, president and general manager, and Arthur Lin, vice president of Engineering and Operations, who bring many years of senior management experience in the data communications industry.
Nortel Networks has been a major player in Silicon Valley since the opening of our first facility in 1974, in Mountain View. Products developed in this lab have emerged to be the world's leading business communications systems with over 100,000 systems installed in more than 90 countries worldwide,'' said John Roth, vice chairman and CEO, Nortel Networks. ''With our acquisition last year of Bay Networks we now have over 4500 people in Silicon Valley, leading our strategies in the enterprise market. With the Shasta acquisition and focus on IP value-added services, we are now expanding our efforts here. The tremendous growth potential at our Carrier Packet Solutions division is matched only by the entrepreneurial spirit fostered in the Silicon Valley.''
Carrier Packet Solutions is responsible for the delivery of Nortel Networks' vision for next generation service provider data networks, the fastest growing and most dynamic segment of the communications industry. Nortel Networks' vision of intelligent, unified networks that enable value-added services will allow service providers to build relationships with their customers, and put an end to the 'profit free Internet','' said Clarence Chandran, president of Nortel Networks Carrier Packet Solutions division. ''We're here in Silicon Valley, where the basic technology of the Internet was created, to draw upon the IP skills and the entrepreneurial culture of startups like Shasta and to complement and leverage the relationships and deep experience we have with the world's service providers. Our newly created Shasta IP Services Business Unit will be a key player in enabling the value-added services that will drive the business case for the next generation of IP public data networks''.
Today's event is a statement of Nortel Networks commitment to delivering the solutions needed to build a new, Intelligent Internet for the next century,'' said Anthony Alles, president and general manager of the Shasta IP Services business unit. ''The new Internet is going to be very different from what exists today because it will be built around the value of delivering services, not simply moving bits. That is a big challenge, but one that Nortel Networks understands better than any data vendor because it has spent decades partnering with the world's service providers to build not only their most scaleable and robust networks, but also the business cases of their most valuable network applications. Shasta and Nortel Networks combined because we shared a vision of what the new network needed to look like, and with the establishment of this new unit, we're well on our way to delivering that vision.''
In a separate announcement last week, Nortel Networks Shasta IP Services Business Unit announced its first major win since the completion of the merger with Nortel Networks in April 1999. Telstra, a leading Australian carrier and service provider will use Nortel Networks industry leading IP services portfolio, based around the Shasta Subscriber Service System in its prestigious Data Mode of Operation (DMO) project estimated to be worth between US$100 million and US$200 million over the next five years. ''Winning a major account like Telstra so soon after our acquisition is a tangible demonstration of the market strength of Nortel Networks, and the speed of the integration of Shasta into its portfolio,'' said Anthony Alles. ''It also shows the speed at which the market is moving towards our joint vision of an intelligent Internet for enabling value-added services. We know that most service providers will increasingly focus on enabling such value as they build out their new IP infrastructure, and we expect Telstra will be only the first of many major wins for Shasta and for Nortel Networks.''
Founded in March 1998, Shasta Networks was acquired in April 1999 by Nortel Networks Corporation and is now the Shasta IP Services Business Unit of the Carrier Packet Solutions Line of Business. The Shasta IP Services Business Unit designs, develops and markets a new class of service-enabling gateways and subscriber policy management systems at the ''subscriber edge'' of IP public data networks. This will enable ISPs and telcos to transition from a pure connectivity-based business model to profitable, network-based, value-added services. The Shasta IP Services Business Unit can be reached at Tel: 408-747-5050, via email at info(at)shastanets.com or at their Web site: shastanets.com.
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