Newsletters Welcome, Guest Log In | Register

Infrastructure

Data center and networking architecture to keep your data safe and moving

About this Blogger RSS

Subscribe

Sign up now and get the best business technology insights direct to your inbox.

  • Daily Edge
  • CTO Edge Update
  • Business Tools & Templates
  • Aligning IT & Business Goals
  • Maximizing IT Investments

0

Does Avaya Really Want Data?

Posted by Arthur Cole Jul 22, 2009 1:03:51 PM

Ever since Nortel went on the chopping block this past spring, one of the central questions has been what will happen to its enterprise products division.


But even though it looks like Avaya will be the one to come away with the prize (although that is not a certainty at this point), there are still some key questions surrounding the ultimate fate of the company's data networking systems.


As our own Susan Hall reported earlier this week, Avaya is ready to pony up $475 million for Nortel's enterprise solutions business, which includes everything from IP telephony and unified communications (UC) equipment to Ethernet routers and other data gear. But since many analysts have couched this as a "stalking horse" deal, meaning it may well be intended to spur even higher bids from other players, there's a chance that another suitor could emerge when the official bidding for the unit gets under way later this year.


Assuming for the moment that Avaya is the eventual winner, though, the deal would create quite a powerhouse in the enterprise communications space, one that would exceed even Cisco in marketshare, according to Gartner analyst Jay Lassman. It would also bring in a hefty revenue stream from a fairly reliable user base. The 4,000-member International Nortel Networks Users Association has already placed its seal of approval on the Avaya offer.


But since Avaya's stock and trade is in the telephone business, how committed would it be to the data products? The company has been mum on the point, saying only that it won't unveil specific plans until the sale is final. Then again, as IDC's Abner Germanow points out, the vast majority of Avaya management, including CEO Kevin Kennedy, are former Cisco guys, so it certainly could run a data unit if it wanted to.


In the end, the decision will likely come down to the company's position against Cisco, according to InformationWeek's Eric Krapf. A head-to-head confrontation across the full range of enterprise products might not be as desirable as a quick sale of the division in order to recoup some of the purchase price and fund a nest egg for further voice-related development. Besides, the company already has close ties with HP, provider of the lower-cost ProCurve networking line.


All of this uncertainty leaves current Nortel partners and customers in a bind. No one expected the bankruptcy process to be easy, but the fact is the longer it takes to spin off the unwanted units, the more tempted people will be to seek more stable alternatives.


And once a change in platforms is made, it will be awfully hard to change it back.

Add a comment Leave a comment on this blog post.

There are no comments on this post

Lowering Your IT Costs with Oracle Database 11g Release 2

This white paper identifies the key capabilities a database management solution needs to successfully deliver more information with higher quality of service, make more efficient use of IT budgets, and reduce the risk of change in data centers.

Software Forum: Information On Demand Virtual Experience

This interactive virtual forum presents leading IT experts providing the insights you need to turn your information into a strategic driver for innovation, business optimization and competitive differentiation.

Network Optimization

Network management tools and tips to increase network speed and efficiency, regardless of office location.

Security Information and Event Management

Best practices, strategies and technologies to help you use security information and event log management efficiently and effectively in order to get business value in terms of increased security, reduced risk, regulatory compliance and increased business agility.

Enterprise Manager

Tools, best practices and expert advice on managing your enterprise IT infrastructure, databases, and Web service components.

Service Oriented Architecture (SOA)

Service-Oriented Architecture is the catalyst that allows today’s companies to respond to business demands faster and more effectively than ever.

All About Reducing Your IT Costs

Looking to cut costs? Use this research-driven Excel tool to pinpoint which IT cost reduction measures best fit your needs.

Learn more >

Windows 7 Upgrade Project Kit

Moving to Windows 7? The Windows 7 Upgrade Project Kit is the ideal support tool for managing all phases of an organizational upgrade to Windows 7. The tools and templates in this kit will help you develop a strategy and map out the implementation tactics which link your Windows 7 deployment to your company's bottom line.

Learn more >