To: Frank A. Coluccio who wrote (1260 ) 9/8/1998 9:29:00 AM From: Frank A. Coluccio Read Replies (1) | Respond to of 3178
Nortel reveals its integration plans for Bay September 8, 1998 InfoWorld via NewsEdge Corporation : With regulatory and shareholder approvals now out of the way, Northern Telecom and Bay Networks last week revealed structural plans for the newly merged entity. John Roth, vice chairman and CEO of Nortel, detailed the structural layout for the new company. A new division called Carrier Packet Networks will be formed, which will provide a "heavy-duty mission-critical packet network that can be operated alongside a traditional network," he said. In addition, the Nortel Enterprise Data Network unit will combine with Bay to allow the merged company -- called Bay Networks -- the ability "to offer end- to-end solutions for WAN products [from Nortel] and LAN products [from Bay]," Roth said. The Carrier Packet Networks business unit will address the carrier telephony customer segment, delivering Nortel's Digital Multiplex Systems, or DMS, family of digital switching systems and other carrier telephony solutions. Also, the wireless divisions of Bay and Nortel will be combined, which Roth said will lead to end-to-end data networks for wireless mobility. One analyst believes the Nortel structural strategy appears solid. "It's probably good that Nortel isn't disassembling Bay and trying to completely submerge it, especially because Bay has existing visibility in the traditional networking industry," said John Armstrong, an analyst at Dataquest, in San Jose, Calif. "And it seems to be a good way of combining the strengths of the two companies without diluting them and creating a lot of churn." Another observer views the merger as of value for enterprises. "For the folks who want to do a virtual private network or voice over IP on private networks, a company like Nortel/Bay is a shoo-in for that," said Brian Cotton, an analyst at Frost & Sullivan, in Mountain View, Calif. Northern Telecom Ltd., in Brampton, Ontario, can be reached at nortel.com . Bay Networks Inc., in Santa Clara, Calif., can be reached atbaynetworks.com .