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VoiceCon Orlando 2009

Nortel Sends Message That It Fully Supports Carrier IP Service Infrastructure Gear

| Feb 13, 2009 | IP Services Infrastructure | Show Update

| Analyst: Joe McGarvey

Current Perspective: Positive/Neutral
Vendor Importance: High
Market Impact: Moderate

Analyst Show Flashes from VoiceCon Orlando 2009
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Event Summary

February 12, 2009 – Nortel announced that more than 50 new features have been introduced with the latest version of the CS 2000 software – Release 12. The new features are designed to help service providers improve the way businesses and consumers communicate through cost-saving, flexible services that power new levels of mobility, collaboration and productivity. In a separate announcement, Nortel announced the commercial availability of the Adaptive Application Engine, the company’s SIP server and Web services development environment. The product is currently in customer trials.


Analytical Summary

• Current Perspective: Slightly positive on Nortel’s announcements highlighting feature enhancements to its Communications Server 2000 (CS 2000) softswitch and availability of its Adaptive Application Engine SIP server, as the separate announcements send a strong message to competitors and operators that Nortel’s development of its carrier IP services infrastructure equipment has not been impacted by its financial issues. Though both announcements appear to be light on divulging capabilities or enhancements that haven’t already been highlighted in the past, Nortel provided enough details and information about future feature delivery dates to provide a strong indication that these product groups are firing on all cylinders.

• Vendor Importance: High to Nortel, as the company needs to make a public demonstration of its commitment to its carrier VoIP and multimedia platforms to mitigate industry and competitive speculation that the company will emerge from its current financial situation with intentions to divest one or more products in this portfolio. Though Nortel is most likely talking to its key customers on this topic, public pronouncements of continued support – as well as promises of future developments – enable Nortel to “multi-cast” its commitment to its VoIP and multimedia platforms and to broadcast a message that it is not falling behind competitors in terms of development activities.

• Market Impact: Moderate on competitors in the softswitch, hosted multimedia application server and IMS sectors of the IP services infrastructure market, as all must take notice of the fact that Nortel’s improved public relations profile and proclamation of continued support for its VoIP and multimedia products means that competitors that were leveraging Nortel’s financial situation and uncertainty around its product families must now change tactics. Competitors must react to the fact that Nortel’s public assurances of continuing to develop its VoIP and multimedia products will mean that sales and marketing staffs will once again have to step up efforts to position their respective products against Nortel’s venerable and market leading – in the case of the CS 2000 – portfolio.

 

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