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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (3530)	10/22/1999 10:21:00 AM
From: telecomguy	Respond to of 14638

Clarify could potentially turn out to be a BRILLIANT move on Nortel's part and again demonstrates Roth's ability to look beyond today to cover his bets. It's very simple. Clarify does Front Office applications that "glue" or integrate into the Back Office databases/application, routers and network on the most ubiquitous, inexpensive Front End platform that was ever invented by mankind --- INTERNET. Since Nortel develops & sells routers & network products, tying in their back end products to a great FRONT END application like Clarify is going to give them a huge advantage over other CRM companies. Nortel will be able to not only build the plumbing for service providers and fortune 500 companies internal network, but they will also be able to extend their network to seamlessely integrate into all the Front Office requirements (customer service, sales, inventory mgmt, billing, e-commerce, database mining, etc.etc.). This is huge. The benefits of extending enterprise databases & network onto the largest Wide Area Network known to mankind (INTERNET) will generate incredible efficiencies, new markets and operating profits. Nortel wants to hedge their bet and make sure that they control, understand & integrate well into a leading Front End application (Clarify) to drive their networking business. Even if the synergy doesn't happen over night (in terms of pulling Bay & Nortel products into markets that they currently are losing to Cisco & Lucent), the actual investment into Clarify is a brilliant one as they will be incredibly profitable as a stand alone entity. 2 billion is a very good price when you consider that it was purchased with a high Nortel papers AND Clarify had the very real possibility of becoming a 10 billion corporation on their own -- considering the size of the CRM market 5 years from now. Remember what Roth is doing to Nortel........He said Nortel is no longer a "gear" manufacturer --- Nortel is now a SOFTWARE COMPANY. This is why he is unloading non-critical manufacturing to third party companies like C-MAC and concentrating his resources & R&D money on software engineering, network R&D, and now enterprise applications which tie back into the network products that they sell into a platform (INTERNET) which will be the decisive battleground of CISCO, LUCENT and NORTEL in the next 5 years. I like this move!!!!!