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

To: Chris Stovin who wrote (2240)	3/16/1999 9:22:00 PM
From: Kenneth E. Phillipps	Respond to of 14638

Article from National Post on NT,HP, MSFT&INTC - First with a product launch date nationalpost.com Tuesday, March 16, 1999 Nortel in project to integrate phone, PC Simon Avery Financial Post An alliance of leading technology firms led by Northern Telecom Ltd. said yesterday it will have equipment integrating the telephone with the personal computer on the market by the middle of the year. The chief executives of Nortel, Hewlett-Packard Co., Microsoft Corp., and Intel Corp. made the announcement together, underlining the strategic significance each puts on the new technology, which will run data and voice over the same network. "People operate in two worlds today. One of computing and one of communication," HP chief executive Lewis Platt told analysts and media gathered at the Tech Museum of Innovation in San Jose. "The existence of these different worlds makes life extremely difficult." They require different equipment, sellers, installation and support agreements, he said. Nortel and HP are promising an all-in-one business communication server through which companies can direct their phone, intranet and Internet traffic. The firms also said they will introduce a messaging system that will allow users to receive voice, fax and email by PC or phone. The new server system will use Nortel components, Intel microprocessors, and will run on Microsoft's Windows NT operating system. Nortel will introduce its new ingredient brand, "Nortel Network Connects" as part of the initiative. HP has formed a business operation to provide sales and support for the equipment. "This represents a new generation of communication products," said Microsoft chairman and chief executive Bill Gates. A single server will connect to a phone and a PC to get the full richness of both environments, he said via video connection from Microsoft headquarters in Redmond, Wash. Nortel is not the first telecommunications company to announce plans to build equipment that integrates voice and data. Rivals Lucent Technologies and Cisco Systems have recently announced products and acquisitions. But yesterday's announcement is the first partnership of its size in the new field and offers an actual product launch date. Up until now, "a lot of what we've heard from companies in the converged networks area has been positioning . . . but we haven't seen any real products from any of these companies, including Cisco," said John Armstrong, a principal analyst with Dataquest. "There's no significant market penetration of any of this stuff yet." Mr. Armstrong called the partnership between Nortel, HP, Microsoft and Intel "a great grouping of top tier companies." He speculated that it will propel Microsoft's Windows NT operating system into the telecommunications business, and pose a major challenge to Cisco's operating system. "It's good for Nortel. It's an extremely competent organization, but one that's a little market shy. If it's going to compete successfully against network companies like Cisco, it will have to be more aggressive," Mr. Armstrong said. "The challenge will be making all customers feel comfortable putting their businesses on the Web," added John Roth, vice-chairman and chief executive of Nortel. The partners said they would contribute several million dollars to two Nortel laboratories in Brampton, Ont. and Santa Clara, Calif., where third-party developers will be able to test their new products for the system.