Recently in Business aspects Category

John McHugh, who runs Nortel's Enterprise Data business apparently wants to bring back Bay Networks, not just as a brand, but as a stand-alone business (stand-alone, as opposed to one part of an larger VoIP, UC or Application business).

He claims that his business is a corporate "afterthought", and has been obscured by Nortel's push into UC, though Nortel has done some creative marketing with respect to energy efficiencies of both its Data and UC portfolios.

The ultimate criteria will be decided by whether splitting Nortel Enterprise in two will bring in more money or not.

This will depend in turn on the value that any prospective buyer puts on Nortel Data business.

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The Nortel User Association held its annual conference, Global Connect, in Pittsburgh earlier this month, just before the 7th and final game for the Stanley Cup between the Pittsburgh Penguins and Detroit Red Wings in Detroit

Henry Dewing of Forrester Research provided a well-balanced view on this event on his blog.

Henry observed that "customers wanted to compare them (Nortel) to the Pittsburgh Penguins wondering whether they could pull off one more win to take the Cup."

Ánd they did!

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Zafirovski Comes To Ottawa

June 19, 2009 3:44 PM

I attended a Canadian Parliamentary Finance Committee yesterday at which Mike Zafirovski, the CEO of Nortel, defended bonuses for execs, and Nortel Pensioners presented their case. One headline read "Zafirovski faces MPs, angry Nortel pensioners".

You can read Zafirovski's opening remarks yourself.

The stated perception from Nortel Pensioners was that all of Nortel will be sold off.

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The CEO of Siemens Enterprise Networks has left Siemens. The new interim CEO is from Gores Group, the private equity firm that owns SEN..

No reason has been given, but could it be due to a disagreement on details associated with potentially acquiring Nortel's enterprise business?

And if that happened, would this open the door for Joel Hackney, Nortel Enterprise's current President, to head the combined business?

I have already suggested this might be an interesting marriage.

Five months have passed without a word from Nortel.

Maybe Nortel is waiting the full nine months to announce who the father will be for its Enterprise business? I hope not.

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Cisco Too Will Fall

June 8, 2009 7:05 AM

Who would have predicted a year ago that GM would be in Chapter 11? Nothing is forever.

Cisco too will fall... someday.

What might bring it to this state?

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GM vs Nortel

June 4, 2009 7:27 AM

Both GM and Nortel are in Chapter 11, but what else can we observe.

Firstly, GM has many manufacturing facilities and ecosystem suppliers in North America; Nortel out-sourced manufacturing years ago.This has attracted political action on behalf of GM.

Secondly, both have been spread too thin, in terms of brands for GM and products for Nortel. This has contributed to lower competitiveness.

Thirdly, Nortel has been, in general, better aligned with customer needs. This customer focus is a plus for Nortel, while changing the Detroit culture is a major challenge for GM.

Finally, in both cases, company executives have their hands full and are not in full control of their destiny.

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The Consumer Effect

May 27, 2009 7:06 AM

The "consumer effect' is hitting the enterprise.

This is happening in multiple ways and goes well beyond reaching out to consumer customers through the devices and applications they use, or accepting the iPhone as an enterprise mobility tool..

For example, music players such as iPods (and features of cell phones) are becoming important employee educational and communications tools. Netbooks are becoming business tools squeezing in on laptops.

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Siemens Enterprise Networking (SEN) admits it's thinking about acquiring Nortel's Enterprise business.

No surprise, as the rumors to this effect have been rampant.

Three things make this an interesting option.

Firstly, Nortel and SEN very much have complementary installed bases, with Nortel particularly strong in North America.

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Nortel just published its 1Q09 results, and, in my mind, held its own in the highly competitive enterprise market. Why do I say this given that its enterprise revenues dropped some 40%? Consider: 1. Cisco revenues went down 20% in the quarter, so that's the new benchmark in these hard economic times. 2. New customers are generally not going to go with Nortel given it's in creditor protection, though there are some noted exceptions such as the M Resort, Las Vegas' latest resort. Applying the 80/20 rule, there goes 20% right there. 3. Continue Reading...

Making Email Useful Again

April 29, 2009 7:45 AM

You can't live without it but, boy, maintaining your inbox takes up way too much time!

The sheer numbers of emails in most corporate inboxes is a major culprit, and these days, spam is less the issue as spam filters are getting pretty good.

So what's the answer, since making a 25-hour day is not a practical option?

I see three elements.

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