NMS Communications signed a definitive agreement to sell
its NMS Communications Platforms business to Dialogic (News
) for $28 million in cash. This is a significant deal as it shows just how little value the platforms division has and it further marks a turning point in a rivalry which has been legendary for the past few decades.
Why the low price? Simply stated, Moore's Law – which, has in the past few years, made it possible for Intel
CPUs to do much of the DSP work that once required separate processors.
In the nineties, the fight for share between Dialogic and NMS was incredible and seemed to transcend business to become personal in many cases. It was a real slug fest and shows like CTI (News
) Expo, INTERNET TELEPHONY and the Computer Telephony event were where these companies would traditionally try to outdo one another.
More recently however, under the leadership of Nick Jensen (News
), Dialogic has been much less of an in-your-face competitor and as such, deals like the purchase
of Cantata and now this one have been made possible.
NMS for its part will become LiveWire Mobile (News
) - the name of the company's subsidiary which focuses on providing ring tones and videos to mobile devices.
I am about to interview at least one company exec and should have more details by the end of the day. Be sure to come to ITEXPO
next week in Los Angeles where Dialogic and NMS execs will be to hear the details from them directly.