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Technology Stocks : Nortel Networks (NT)
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To: Bill who wrote (3925)12/13/1999 8:54:00 PM
From: Kenneth E. Phillipps  Read Replies (4) of 14638
 
Customers are happy with the way Nortel handled the Bay acquisition.

internetwk.com

Today, the major vendors tend to acquire and then rebrand products. For example, Nortel continues to update the former Bay's Backbone Concentrator Node, a router line that dates back to the early part of this decade and thrived despite two acquisitions. Stephen Saniuk, senior manager of communication engineering at Staples, cites the scalability of the BCN and other Nortel products as key factors in the retailer's decision to go with Nortel to implement an ATM backbone and frame relay WAN.

In the InternetWeek survey, Nortel won particularly high marks for its handling of the Bay acquisition. Among respondents, 45 percent say their
overall experience with Nortel is better now than it was pre-merger. That's a much higher percentage than for other merged vendors. The same percentage of Nortel customers say there's been no change.

One reason Nortel and others may be faring so well is that their acquisitions have been aimed at filling in product lines. That's a stark contrast to mega-mergers in the telecom sector, which have delivered little in the way of complementary services, according to earlier InternetWeek research. It's also a far cry from a few years ago, when internetworking vendors bought smaller outfits with the goal of converting customers to their own products, consultant Layland says. </>
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