Gary, You have been posting comments on this thread and the LU thread to the effect that NT is giving up on the enterprise sector. I am posting this article from Theglobeandmail so you can be informed about NTs intentions regarding the enterprise sector.
Nortel to create e-business unit Division aimed at boosting corporate sales expected to generate $1-billion; centred around Clarify acquisition
SIMON TUCK
Technology Reporter
Saturday, March 18, 2000
Ottawa -- Nortel Networks Corp. will announce later this month that it's creating a new e-business division aimed at boosting its wobbly sales to business customers.
The new unit will integrate Nortel's various e-business pieces into one operation that will be expected to generate sales of at least $1-billion (U.S.) a year, sources say.
It will focus on selling hardware, software and services to help corporate customers do business over the Internet, and will be centred around Nortel's recent acquisition of Clarify Inc.
"We're planning to announce a few things," a Nortel source said. "There are a lot of things in play."
The new unit will be based in San Jose, Calif., operating under the Brampton, Ont.-based company's enterprise division, which includes sales to all types of business customers other than telephone companies and other large carriers. The new operation will be led by Tony Zingale, Clarify's president and chief executive
officer. Nortel, the crown jewel of Canada's technology industry, acquired the software maker on Oct. 18 for $2.1-billion (U.S.) in stock.
Nortel will officially unveil its new e-business unit on March 28.
The new unit will require the further integration of Nortel's existing operations in the area with Clarify and two other recent Nortel acquisitions aimed at the e-business market -- Bay Networks Inc. of Santa Clara, Calif., and Shasta Networks Inc. of Sunnyvale, Calif.
There are no plans at this time to consolidate or move large groups of employees, although some Nortel employees have already moved into Clarify's building.
Analysts say the e-business market is booming as companies of all sizes -- particularly large corporations in virtually all sectors -- expand the breadth of their on-line operations.
"They're all in it," said Duncan McKie, an analyst at market research firm Pollara Inc.
The new e-business unit's goal will be to produce a suite of products that integrates their various networks and allows corporate customers telephone or fax access through the Internet.
Clarify makes software that allows businesses to manage and automate sales, marketing, customer service and quality control over the Internet.
The creation of the new e-business unit is also Nortel's latest push to increase its
position in the booming enterprise market. Although Nortel's enterprise sales jumped 33 per cent during the last fiscal year, some view the operation as an underachiever because it has lagged many of its competitors' pace.
The division's sales fell 5 per cent in the fourth quarter from the same period a year earlier.
In addition to the rash of acquisitions, Nortel also launched an aggressive pricing strategy last year when it slashed its prices in the lucrative router market. Routers, which manage and direct traffic flow over telecommunications networks, are the domain of Cisco Systems Inc. of San Jose, one of Nortel's fiercest rivals.
Subscribe to The Globe and Mail
COMMENT ON THIS STORY
Write a Letter to the Editor
SEARCH FOR RELATED BOOKS
globetechnology.com |
