Enterasys/Siemens Enterprise Communications Integration Begins

| Nov 19, 2008 | Enterprise Network Systems | Competitive Update

| Analyst: Bill Terrill

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: Low

Event Summary

November 17, 2008 – Enterasys Networks announced unified wired and wireless offerings to enhance voice, video and data collaboration – leveraging new HiPath Wireless and OpenScape Mobility technologies recently added as part of the joint venture with Siemens Enterprise Communications. This is the first step in overall efforts among the companies of the new joint venture to deliver integrated data solutions under a single brand in the coming months.

Analytical Summary

• Current Perspective: Positive on the integration of the Siemens Enterprise Communications HiPath Wireless and OpenScape Mobility technologies into the Enterasys networking structure. This integration strengthens the Enterasys WLAN portfolio and indicates close collaboration between the new joint venture partners. By providing a single management solution for both wired and wireless networks and offering unified communications (UC) capabilities, Enterasys has expanded its enterprise reach.

• Vendor Importance: Moderate to both Enterasys and Siemens Enterprise Communications, because this announcement offers clear evidence that the joint venture is providing immediate benefits with the Siemens WLAN and UC technologies becoming available from Enterasys under a single management platform. This should be the first of many future efforts from this joint venture.

• Market Impact: Low on the enterprise network market, because Enterasys has already been offering WLAN products through its partnership with Trapeze Networks. The tighter integration of Enterasys infrastructure and Siemens communications products arms the joint venture partners with a better marketing message worldwide: a new single source provider of comprehensive enterprise voice and data solutions has arrived.

Recommended Competitor Actions

• Competitors, such as Cisco, should focus on their own, longer history of support for fully integrated offerings in the WLAN and IP telephony markets. This is especially true of other second tier enterprise network vendors such as Alcatel-Lucent and Nortel that are more likely to be in direct competition with Enterasys.

• The newness of the relationship between Enterasys and Siemens Enterprise Communications can be emphasized as a potential issue. By pointing out that this joint venture was imposed by The Gores Group as a consolidation of its investments, competitors can raise doubts about the long term viability of this venture.

• Any enterprise network infrastructure vendor that does not currently offer a full range of IP telephony products must move to incorporate these products into its product line. A key short term focus must be a clear alliance and integration with key vendors of IP telephony and mobility functions, such as Avaya or Aastra.

CLIENTS ONLY

Competitive Positives and Concerns

Recommended Vendor Actions

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