Yes but what if the integrated package solution DOES contain the best-of-breed component systems? Alteon, Shasta, Passport, these are leading-edge, tested, carrier-grade platforms that have succeeded in their own markets.
What makes you think that tightly combining/integrating these platforms to support multi-functionality requirements of major ISP/Carriers is not going to be received well?
Take a look at the success that NT is having right now in the Cellular infrastructure market with their Wings Of Light strategy where they leverage their leadership in optical to integrate cellular network platforms and position themselves in front of other single-solution vendors like LU, Siemens & Ericsson.
I have argued in the past that in fact this is a STRENGTH for NT not weakness.......remember that the big market for Alteon type of switches are not necessarily sophisticated Carrier types but the new-fangled next-gen ISP/ASP/Carriers who are under financial pressure to cut overhead and eliminate large bloated MIS/Network Engineering groups who are required to source and integrate Best-Of-Breed single solution platforms.
So for NT to package and deliver comprehensive set of fully integrated, seamless solution for these smaller companies I think is an ADVANTAGE, not a disadvantage.
In fact even larger carriers like C&W are working with NT in an innovative way to OUTSOURCE not only the building/deployment of new IP network but to MANAGE IT on a $1.4 billion dollar, 10 year outsourcing contract.
Seems to be that the concept of companies sticking to it's knitting and doing what it does best as opposed to trying to build-it all in-house is a business trend not only followed by companies like CSCO and NT but increasingly by the Carriers who are asking themselves "what business are we in?" "Why should we have 1000 engineers to build and manage the network ourselves when orginal equimpment mfg'ers like NT can do it all for us?".
If this trend continues, we will see MORE full turn-key integrated offerings from vendors like NT who has the depth & breadth of products/services to pull it off (unlike CSCO --- sorry Gary, couldn't resist:).
This will give decided advantage to NT in my opinion so today's news is very positive even if it's not so apparent to the non-techies who may not fully understand NT's long-term strategy.
In fact, I see a chunk of Carriers who are going to rely on vendors like NT to COMPLETELY BUILD and MANAGE & MONITOR their network on a service bases so that they can stick to what they are SUPPOSED to be good at; Marketing, Billing, Product Development, Customer Service and Distribution!
C&W experiment is a first major step towards that trend and if that business model succeeds, I think NT is going to be in the BEST position out of all the major vendors.
If you think about it, no other vendors at this point in time has the depth-breadth of products for the Carrier market. Yes Ericcson is strong in the cellular market but they lack everything else.....yes CSCO is strong in the router market for both carrier and enterprise space but Optics? Cellular? Non-Existent. And of course LU is LULU these days where they seem to have zero best-of-breed solutions in all the key niche sectors in networking.
ALA is possibly the closest competitor to NT in terms of offering a comprehensive suite of solutions on a turn-key basis but I think NT is ahead on couple of key areas relative to ALA. Besides, ALA is still held down by beaurucracy and the european-union mentality whereas NT is not.
All in all, this announcement is an important one because it is consistent with their approach to start providing Single Source turn-key solutions to the smaller ISP's/ASP's so that NT becomes the de facto Prime vendor for the nascent next-gen carriers.
Of course I could be wrong :) |
