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Rich Tehrani
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| Communications and Technology Blog - Latest news in IP communications, telecom, VoIP, call center & CRM space

Merger/Acquisition

Nortel Earnings August 2008

August 1, 2008

In a podcast conversation with Joel Hackney, President of Enterprise Solutions Business at Nortel I had a chance to discuss Nortel's earnings which were a mixed bag for the quarter. On the one hand there were eight quarters of year over year profit increases and revenue and gross margins increased compared to the same quarter (Q2) last year.

On the down side there was a wider net loss of $113 million, or 23 cents a share, compared with a net loss of $37 million, or seven cents a share, a year earlier.

Hackney did explain that the economic environment has been challenging, citing a "tough economy" and he mentioned work needs to be done to improve operational effectiveness and margins in the business.

Hackney went on to say, "Not only are we looking to become more effective and efficient, internally within Nortel from a cost perspective, we're taking our solutions externally and helping our customers do the same thing."

Other important takeaways were thoughts on the LG-Nortel JV, the Siemens acquisition by the Gores Group and what the rest of the years' earnings will look like.

Here is the podcast  for more.























My Tips to Resellers and VARs

July 29, 2008

97 Degrees in Dallas And it is Cool

Well it is relatively cool anyway. Compared to the rest of thee week, 97 feels downright arctic. I think the humidity levels are lower as well. I had a great talk today at IP Sizzles 2008 and I am as enthused as ever about our space.

One part of my discussion centered around how my talks used to focus on making money selling VoIP then making money selling IP communications and now it is just communications. It could have even been technology as I focused on things like UPS systems, SANs, RAID systems, disaster recovery, etc.

The reseller of today has to seize opportunities and be smart enough to listen to customer needs and sell them solutions.





Ribbit Sold to BT

July 29, 2008

Seems like the rumors were true. Ribbit was sold to BT for $105 million according to ZDnet. Here are some thoughts on the matter from Andy Abramson as well.

Why would BT buy a company focused on communications development? The primary reason is that they see communications changing rapidly and they want to be on the leading, not trailing edge of this trend.

Road Warrior Bible

July 27, 2008

Fuel Cells Power Base Stations

July 27, 2008

We live in a world obsessed with treating the environment better. While this statement does not apply to the entire world, the green technology movement in Europe and the US seems to be growing faster than ever. Still, when ensuring your carrier network has redundant power, you have options which are not really environmentally friendly. Diesel generators and batteries are but a few examples.

Unified Communications Almost Free

July 23, 2008

When Avaya started pushing $99/user unified communications solutions, I knew that there would be a price war in the UC space. In my opinion price wars are bad. Nobody wins in a price war because in order to deliver low prices, margins are cut to the bone and inevitably service suffers.

The implication here is not that any single vendor is providing inferior service at the moment  mind you but price wars generally don't end well for anyone.

Having said that, we have the opposite end of the spectrum in open source where the price is actually zero. Companies like Digium and Fonality have found ways to add value to free and in doing so have generated solid revenue.



ITEXPO: Exhibits 90% Sold Out

July 21, 2008



There has been more interest in ITEXPO Fall 2008, Los Angeles, CA September 16-18 than any other Internet Telephony Conference & Expo I can remember in recent years. It seems people are beginning to realize this show is the only major IP communications event left -- it is growing quickly and it draws attendees from around the world.

If you are looking to reach service providers, enterprise customers, SMBs, resellers or the communications industry at large -- you should consider being at this show.

A participating companies list I picked up from an upcoming TMC press release is as follows but really, every important company in telecom will be represented in multiple ways. (please do not get offended if your company is not here. If I added all participating companies -- my readers would get fired because they would spend their work day trying to get through it all -- instead of getting their jobs done).





Show Me the Opportunities!

July 19, 2008

This past week has had me thinking a great deal about telecom and how it is evolving. I have come to some conclusions worth sharing. The first is that customers could care less about walled gardens. Sure, we hear complaints from some about how walled gardens are bad - but consumers don't care.

Yahoo Enlists Home Page to Fight Icahn

July 18, 2008

The Yahoo! takeover offer by Microsoft and the subsequent saga that has ensued is unusual in my recollection of corportate takeovers. The latest chapter in the saga is Yahoo now using its home page to fight Carl Icahn. The ad they are running on their home page (pictured) really targets shareholders and others who are interested in the gory details of a corporate takeover.

What is most interesting is how Yahoo points to (see below) how unsuccessful Carl Icahn has been in his past efforts to increase shareholder value. Certainly, in an official bear market, it is fairly easy to make Icahn look bad.

Check out this TechCrunch article for more on the story.

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Icahn's Recent Involvements with Public Companies (1) Company Involved Since Change in Stock Price Since Initial Involvement(2) Amylin Pharmaceuticals Inc. May 2008 >(20%) Enzon Pharmaceuticals, Inc. Mar 2008 >(15%) The Greenbrier Companies Feb 2008 >(5%) Guaranty Financial Jan 2008 >(70%) Federal-Mogul Corp. Jan 2008 >(30%) BEA Systems Sept 2007(3) >45% Biogen Idec Aug 2007 >1% Motorola Inc. Jan 2007 >(60%) Cyberonics, Inc. Jan 2007 >20% WCI Communities Inc. Jan 2007 >(90%) Telik, Inc. Jan 2007 >(80%) Lear Corporation Oct 2006 >(45%) Time Warner Inc. Aug 2005 >(20%) Temple Inland, Inc. Feb 2005 >(55%)(4) Blockbuster Inc. Dec 2004 >(70%)







VON Shows Over

July 16, 2008

A Community Service Message

I have been pretty silent about what has happened with Pulvermedia and the VON events because frankly, everyone else seemed to be covering the fact that the events are no longer taking place.

Also, TMC used to compete head to head with thee VON events so I thought it poor taste to discuss their demise. Having said that, I was at a recent event where I heard horror stories of people showing up for VON Amsterdam -- only to find out there was no VON Amsterdam. Commenters in the blogosphere have echoed the same sentiments.

So I wanted to make sure I went on record letting people in the communications industry know that Pulvermedia is shut down.





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