Stratus To Boost Ascend's Offerings
techweb.com
August 10, 1998, Issue: 727, Section: News & Analysis Salvatore Salamone
Consolidation among data networking and telecom equipment companies just keeps rolling along.
Ascend Communications Inc. last week said it is buying Stratus Computer Inc. in an all-stock deal worth about $822 million. Ascend officials said that Stratus' telecom networking expertise, particularly its Signaling System 7 (SS7) and advanced call-handling service products and applications, will help Ascend meet carrier and service provider demands for integrated voice/data services.
The acquisition paves the way for Ascend to unite its IP and ATM data networking products with intelligent call-handling services that are common in the public switched telephone network.
"The combination of Ascend with its gateway hardware and Stratus with its SS7 and [computer] services enable providers to offer an integrated voice solution," said Kevin Dundon, vice president of voice network development at IP-centric service provider Level 3. "That is positive for someone who is trying to build voice services without [central office] switches."
Industry experts said the acquisition brings quite a bounty to Ascend.
"Vendors have realized that voice-over-IP basic transport will be a commodity," said Christopher Nicoll, a senior analyst at Current Analysis Inc. "You will need things like number portability, 800 services and calling card services if you are going to offer a voice alternative over IP," he said. And that is where Stratus comes in.
"Stratus does a lot more than SS7 gateways," said Lisa Allocca, an analyst at Renaissance Worldwide Inc. She noted that the company's service control point equipment, which combines special hardware and software, is used by telcos to offer intelligent networking services and applications like cellular roaming.
Allocca said that all data service providers would like to offer such services, which are more commonly associated with the switched voice network. Stratus brings the applications to offer these services as well as the expertise in dealing with the worldwide telco market, according to Allocca.
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