Nortel’s Future

With the rumblings in the market and out Alcatel and Lucent possibly calling things off, it might be a good time to look to Canada and see how Nortel is doing and what they plan for their future. I just came across this great article on the future of Nortel. The company believes Next-Generation Mobility, Enterprise Transformation and Services & Solutions will be the heart of the new Nortel.

Here is my take on the news.

A super-hot area – productivity will skyrocket as mobility gets better. There is lots of money to be made in this space and it will become more competitive as smartphone makers including Blackberry, wireless carriers and Microsoft (who could be in the smartphone category but are so large they deserve their own) all jockey for leadership position. Nortel has a great relationship with Microsoft which could be important for them. In the past, Microsoft has had a reputation for draining its partners and taking over markets for themselves. But I suspect the newer Microsoft is kinder and gentler and this partnership could really help Nortel out a great deal.

Enterprise Transformation
This is a buzzword that may mean a different thing depending on who you are but if you have read my articles on Just in Time Communications (assuming this is what transformation means) – this is exactly what the company should be focusing on. How to make companies more productive and efficient.

Services & Solutions
This is a profit generator par excellence. Look at how IBM has transformed itself into a new company revolving around Linux and software and services. Nortel could do the same. From Mike Zafirovski’s viewpoint it is time to take some of the money those consultants have been making from Nortel customers for all these years.

My take is Nortel has good direction and if Next generation mobility encompasses IMS and WiMAX and other crucial service provider technologies, then the company is on the right track.

In addition according to Reuters Canada, Nortel is looking for acquisitions. Some likely areas are in my opinion are WiMAX, Cable technology and IP communications companies focusing on the enterprise and service provider space.

The company still faces fierce competition but sometimes shaking up your team with a sale of an asset that is underperforming can wake up the organization and get the whole company to work harder and more efficiently. I would guess this strategy will payoff as long as the company executes and Zafirovski continues to exude strong leadership. So far so good.

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