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Cisco Booted at UPMC

November 15, 2006
To be more fair, at University of Pittsburgh Medical Center, Cisco, Avaya Nortel and Siemens voice systems will all be replaced by Alcatel in a $300 million deal that seems more like a service provider network than one needed for your typical medical needs. The deal is France-based Alcatel's largest enterprise transaction in North America, and will involve the retirement of thousands of Cisco switches and routers, hundreds of PBX systems, and thousands of digital phones from Avaya, Nortel, Siemens and other vendors. In doing this, the medical center will consolidate more than 150 standalone PBX phone systems into two redundant data centers, while boosting its core bandwidth by a factor of 10.

"It's pretty big," says Bill Hanna, vice president of IT infrastructure at UPMC. "The long and short of it is that the Cisco infrastructure will be replaced with an Alcatel infrastructure."

Analysts quoted in this article think this could be a defining moment for Alcatel who can now become a serious player in the enterprise space. Ironically, recent announcements at Alcatel have been focusing on their service provider business and now this massive deal comes along. The company could indeed become a major threat to Cisco in the future as they have a breadth of product in the service provider space unmatched by Cisco and in the enterprise they have great products that to date just didn’t gain much traction in the US. Perhaps things will be different with their Lucent purchase. They now have significant real estate in the US. Can they use this to gain more share is the important question however.
 
One successful deployment no matter how large does not a trend make. Still this is a very big deal that should be considered a major shot at Cisco’s lead in the space.

Cantata Layoffs

November 15, 2006
The word on the street is that approximately 50 people (see update) were laid off at Cantata yesterday out of a workforce of 300. Most of the people who were let go are shocked. Sources tell me the reason for the layoffs are soft sales numbers and some speculate the company is facing increased competition in its Excel Switching line. Apparently competitors are providing lower cost solutions. In addition others believe the company has not fully promoted the new Cantata brand which has much less awareness than the decade and a half old Brooktrout name and the very well-known Excel name.
 
This news comes at a time when speculation exists that Dialogic will take share back from many in the media processing space.
 
Update
 
According to Peter Vescuso the VP of Marketing at Cantata Technology:
 
There is a longer term plan in place at the company to offshore development. Many of the people who will be let go will stay on with the company for some time. Cantata is looking to increase its competitiveness by hiring people in other areas of the world. In some cases where costs are lower and in other cases where it makes sense strategically to hire people. In other words closer to the customers.
 
This means the number 50 I quoted above is not entirely accurate as many of these jobs will be replaced. The company would not give an exact number of people let go.
 
I was present when Greg Galitzine asked Peter what the effect of these moves will be on customers. Peter said this is good news for partners and customers as the company will have better products longer term and they will be able to serve them much better as well.
 
In response the Dialogic mention above Peter said the opposite is true as Cantata has benefited from the Eicon/Dialogic integration and have gained some customers they were unlikely to get if the company was still under Intel’s umbrella. They plan on making an announcement about this news soon.

529 College Savings

November 15, 2006
Sorry – this has nothing to do with tech or VoIP or IP communications or really anything TMCnet normally covers. Still I am compelled to share good news about 529 plans I just learned that on August 17, 2006, President Bush signed the Pension Protection Act of 2006. Among other provisions that address retirement planning, this legislation ensured that qualified withdrawals from 529 accounts would be permanently tax free. Prior to the bill becoming law, this benefit was scheduled to expire after 2010.
 
There are more details about 529 plans in this article from Upromise. In case you aren’t aware, Upromise has various ways for people to save money for tuition via deals they have worked out with product manufacturers and retailers. Basically you can get a percentage of your purchases put into an account that accrues for use in paying tuition.

Air Blown Fiber Market to Grow

November 15, 2006
They say death and taxes are the only two certainties in life but I wonder if in the technology space we could come up with a couple of certainties as well. I would say the need for "bandwidth" and the pace of "change" are the two certainties we must contend with in tech. As bandwidth hungry IP communications becomes more prevalent companies need to focus on network capacity to ensure they can easily carry voice and video with excess capacity left over for other important network functions. Not every company is carrying voice and video on their networks today but it seems the trend is certainly going in that direction.
 
The challenge for IT departments of course is knowing what the applications of importance will be six months from now and perhaps as importantly six years from now. One answer to the dilemma is to buy the most expensive bandwidth solution you can find – or the most expensive fiber in the hope that the technology will have you covered for years to come. Of course with the continuous change in fiber technology taking place, who knows if today's fiber deployment will be obsolete in a few years.
 
I had a chance to speak with Sumitomo Electric about a solution to the problem which is their FutureFLEX Air-blown Fiber Technology. The solution uses tubes and instead of laying dark fiber. This is a great solution as it does not require you to purchase the fiber before you need it. This allows you the ability to avoid purchasing obsolete technology and overspending. In addition you don’t need building permits or construction to lay new fiber. The solution uses empty tubes that are ready at any time to be filled with fiber, instead of laying dark fiber.
 
When you want to add more fiber you can blow out the old fiber and blow in new fiber at 150 feet per minute. This is done via distribution boxes which are located throughout a building. This allows you to preserve your fiber investment.
 
The company’s current customers include many household names such as CNN, ESPN, Mayo Clinic, DFW International Airport, Pentagon, Nissan, Johns Hopkins University, Homeland Security and Intel so it is surprising the air blown fiber market hasn’t received more publicity.
 
Recently I found out that University of Phoenix Stadium (Home of the Arizona Cardinals) became the First NFL facility to deploy Sumitomo’s FutureFLEX solution. The 1.7 million square foot facility includes wireless network access from every seat for fans, seamless voice, data and video for facilitating Cardinal team-member communications, and quick-response FutureFLEX-enabled network reconfigurations for the stadium’s concession vendors, event customers, and numerous broadcasters that demand quick network changes to meet their continuously changing requirements.
 
Mark Feller, technology director for the Cardinals said in an announcement, “The FutureFLEX infrastructure makes it possible for us to bring on new capacity in hours or days, rather than weeks or months. It resolves many IT issues by providing immediate scalability and quick and easy fiber installations (without construction crews disrupting operations or the facility) for a bandwidth-ready network backbone.” He continued, “The FutureFLEX system also eases the planning and budget process for not only expected network growth, but enables us also to meet quickly any unexpected network expansions, moves, adds, and changes required to accommodate future technology and new projects or events, such as the hosting of the Fiesta Bowl and 2008 Super Bowl XLII. Based upon these benefits, FutureFLEX is changing the way IT views the physical layer.”
 
Ballparks are looking to become more technologically advanced these days and Cisco is an integral part of the solution in Arizona. In addition, Cisco recently made it known they are working to build the most advanced stadium in the world for the Oakland A's in Fremont, California. Cisco insiders tell me the company had excess real estate acquired during the bubble times and they felt their future expansion could be handled with real estate they have on hand. Subsequently Cisco seems to be potentially donating some or all of the land in exchange for marketing and other stadium rights.
 
But getting back to certainties in tech, "bandwidth " and "change" are what many IT managers have to contend with on a daily basis. With that in mind, Sumitomo Electric wants to be the equivalent of your doctor and accountant, enabling the rapid evolution of the physical layer of your network regardless of what your bandwidth needs will be or how technology changes.