Though beset by a slow economy and financial challenges,
Nortel is proving resilient, as it restructures to survive the economic climate and braces for better days ahead.
Reuters (
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reported yesterday that Nortel has suspended its plans to sell its Metro Ethernet Networks unit as it begins its restructuring under bankruptcy protection.
“The previously announced potential MEN divestiture has been put on hold while the over-all business plan is being developed,” Nortel (
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Reuters said that analysts had speculated the division, which includes Nortel’s optical and carrier ethernet technology, could fetch as much as $1 billion. The growing business – which accounts for roughly 14 percent of Nortel’s revenue – was put up for sale in September, but no bids have materialized.
The financial situation hasn’t dissuaded customers from buying new and existing products, which are proving popular. More than 1,000 units of the Business Communications Manager 450 hybrid-IP solution, introduced last fall, have already been shipped. Wes Durow, Nortel Vice President, Enterprise Global Marketing calls this “the fastest ramp ever on a Nortel VoIP solution.”
Nortel says the results demonstrate strong global demand for a solution that connects people faster, improves collaboration and speeds time to decision for firms with up to 300 employees. The BCM 450 product helps medium-sized businesses more easily and cost-effectively transition to unified communications, which saves them up to 70 percent of their original investment by reusing their existing equipment.
Durow reports that Nortel been awarded a contract verbally on a new large deal with a Las Vegas hospitality customer prior to the restructuring announcement and sealed it afterward. While the firm is not at liberty at the present time to get into details it promises that they will be forthcoming.
“While people may gamble with their own money in ‘Vegas the businesses there sure don’t,” Durow said. “The customer did their due diligence and chose Nortel.”
He added that many customers have told the firm that the restructuring allows certainty of supply. The big question they had had is making sure that their service and support hasn’t changed. In response it recently looked at its order fill and delivery rates and found that it finished at 96 percent.
“Have we had conversations with customers on the restructuring issue, sure,” says Durow. “Is there a customer someplace that has pulled out because of the restructuring I’m sure that’s possible, but none that I’ve seen directly and in my role seeing the numbers.
“We win and lose customers every day. The bottom line is that our customers are standing by us, customers are placing orders with us, and we’re drawing business from existing customers and picking up new ones.”
With BCM450 Nortel expands its addressable market offering greater capacity for businesses like the Dutch law firm Bout Overes. Based in Groningen, Netherlands, Bout Overes has a strong background in legal counseling which dates back to 1892.
The company now serves several clients including top businesses from many sectors. By choosing a BCM450 solution delivered by NewComm IT, a local Nortel and Westcon partner, they can move towards a full IP-based Unified Communications (News - Alert) environment.
“We aim to provide an optimum service delivery to all our clients; and communications availability is a critical part of that process. We chose the Nortel BCM 450 for its reach features set, its reliability and scalability,” said J.J. van der Molen attorney at law, Bout Overes. “It also enables our employees to collaborate more efficiently.”
Stephanie Watson, general manager at the analyst firm MZA, reportedly said given that already more than 1,000 BCM450 units have been shipped, many businesses have already realized the benefits that messaging, mobility and collaboration capabilities can bring.
“Small to medium size firms represent as a whole a true driving force of the EMEA economy, businesses deploying hybrid/IP solutions in the 11-250 user category accounted for almost 60 percent of total EMEA demand in the first three quarters 2008,” Watson reportedly said.
The BCM450 is available from Nortel, or through its strategic partners across Europe.
“The introduction of BCM 450, in conjunction with our ConvergencePoint (
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Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.
Brendan B. Read is TMCnet’s Senior Contributing Editor. To read more of Brendan’s articles, please visit his columnist page.
Edited by Michael Dinan
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