Bay is unlikely to be acquired in the near future by telecom companies. Bay is looking to form partnerships with them.
There goes the rumors!!!!
infoworld.com
Bay Networks searches for telecom equipment partner
By Rob Guth
InfoWorld Electric
Posted at 7:05 AM PT, Jun 5, 1998
Bay Networks is actively seeking partnerships with hardware vendors that supply equipment to telecommunications carriers, the head of the company said Friday in an interview with IDG editors.
But Bay Chairman, President, and CEO David House would not comment on recent widespread rumors that his company is an acquisition target for such a vendor.
"One of the things we are actively pursuing is closer partnerships with telco equipment providers because of their relationship with the service provider infrastructure customers," House said. "You will see more cooperation between Bay and the traditional suppliers of telco-type equipment."
Bay and many of its competitors that have built their businesses on selling data communications equipment to enterprises are now rapidly trying to move into the fast-growing market of supplying equipment to telecommunications carriers. That market has traditionally been dominated by proprietary switch vendors such as Alcatel Alsthom, Fujitsu, Lucent Technologies, and Northern Telecom.
In recent weeks, rumors have circulated that both Northern Telecom and Alcatel may acquire Santa Clara, Calif.-based Bay.
House emphasized that he sees the need for partnerships with such vendors, but would not comment on the acquisition target rumors, saying only, "I think we are an attractive company."
He contrasted his company's strategy of embracing the telecommunications equipment world with that of Cisco which, he said, is trying to challenge those vendors head on.
"Cisco has declared these guys competitors," House said. "We see them as partners and we see opportunities to partner with them on a wide range of fronts."
Those areas include reselling, OEM agreements, technology exchanges, and joint development of products, he said.
House would not detail when an agreement between Bay and a telecommunications equipment manufacturer might come about.
"As they happen, they will be announced," he said. "We've had discussions with some of those companies during this visit."
Responding to a question on whether Bay will announce an alliance at a communications show taking place in Atlanta on Monday, House said coyly, "Stick around. No press release before it's time."
Bay Networks Inc. can be reached at baynetworks.com.
Rob Guth is a correspondent in the Tokyo bureau of the IDG News Service, an InfoWorld affiliate.
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