NETWORK WORLD NEWSLETTER: JIM DUFFY WITH VIEW FROM THE EDGE 08/26/04 Today's focus: Enterprising efforts
Dear [EMAIL PROTECTED], In this issue: * Nortel banks on sales to corporate customers for rebound * Links related to View from The Edge * Featured reader resource _______________________________________________________________ This newsletter is sponsored by Alterpoint Read the latest analyst report on Network Change and Configuration Management (NCCM) written by EMA's Dennis Drogseth. This report discusses the latest developments in the NCCM market, including an in-depth look at DeviceAuthority Suite, a comprehensive solution for configuring, changing, and controlling today's complex, multi-vendor IT network infrastructures. Download the report today to learn how you can leverage NCCM to reduce the cost and complexity of managing network change. http://www.fattail.com/redir/redirect.asp?CID=73304 _______________________________________________________________ CONTEMPLATING A CAREER MOVE? For many of us, it is time to contemplate a change. You're great at managing networks, but what about your career? Get information and advice for managing and developing your career and guiding your staff's career choices at NW Fusion's Career Research Center. Click here: http://www.fattail.com/redir/redirect.asp?CID=73229 _______________________________________________________________ Today's focus: Enterprising efforts By Jim Duffy If there were any doubts about Nortel's commitment to the enterprise, they should be vanquished now. Amidst the layoffs, executive firings and operational consolidations announced by Nortel last week was a strategic emphasis on its enterprise business as the company looks to regain financial footing after an accounting scandal. Enterprise is one of two Nortel business units - Carrier being the other - left standing after the company unveiled its reorganization plan. Enterprise products accounted for more than 20% of the company's revenue each of the past two quarters, outpacing two of what had been four company units before the reorganization. Nortel also is gunning for the defense and government markets, which represent tens of billions of dollars annually in the U.S. alone, says Nortel CEO Bill Owens. Owens also says enterprise operations were spared the brunt of the 3,500 layoffs announced last week, which represents 10% of Nortel's workforce. The renewed emphasis on the corporate world comes none too late to some. Barring a renewed commitment, investment firm UBS Warburg suggested recently that Nortel consider paring down or even selling off its enterprise and optical units to reach profitability targets. Analyst Nikos Theodosopoulos says enterprise and optical were a "drag" on Nortel's profitability Also, Nortel is a distant No. 2 to Cisco in enterprise LAN switching with a 5.3% share of the $3.3 billion market in the second quarter, according to Synergy Research. Cisco's share is 69%, according to Synergy. Nortel's LAN switching revenue dropped 10% between the first and second quarters, Synergy says. And growth in the company's enterprise business has been weaker than Nortel's peers for two years, according to UBS Warburg. Owens says Nortel did consider "all opportunities and alternatives" for its enterprise business, including spinning it off or selling it. But the emerging synergies between enterprise and carrier, and the role the unit plays as the "seedcorn" for Nortel's defense and government activity, convinced the company to retain it. "I don't think it has been in the natural DNA of Nortel to be strongly in the enterprise business," Owens admits. "It hasn't had the focus and the direction that is natural for Nortel to have with its biggest customers, the major telcos of the world. But as major telcos have become more interested in enterprise and bundled IP solutions, so have we." In establishing the Enterprise and Carrier business units, Nortel consolidated four units into two. The previous ones were Wireline, Wireless, Optical and Enterprise. Owens said the streamlining reflects the realities of the market - "We're all heading toward a converged solution." The reorganization also will result in a more customer-attentive structure dedicated to integrating security into the converged product set, Owens says. Nortel estimates the reorganization will cost $300 million to $400 million but will save the company $450 million to $500 million annually, including reductions in research and development spending and investments in long-haul optical systems. RELATED EDITORIAL LINKS Nortel chief discusses why enterprise stays Network World Fusion, 08/20/04 http://www.nwfusion.com/edge/news/2004/0820ntqa.html Nortel to lay off 10% of staff IDG News Service, 08/19/04 http://www.nwfusion.com/news/2004/0819nortel10.html Fiscal crunch raises questions at Nortel Network World, 08/02/04 http://www.nwfusion.com/news/2004/080204nortel.html _______________________________________________________________ To contact: Jim Duffy Jim Duffy is managing editor of Network World's service provider equipment coverage <http://www.nwfusion.com/edge/>. He has 18 years of high-tech reporting experience, including over 12 years at Network World. Previously, he was senior editor at Computer Systems News and associate editor/reporter at Electronic News and MIS Week. He can be reached at <mailto:[EMAIL PROTECTED]>. _______________________________________________________________ This newsletter is sponsored by Alterpoint Read the latest analyst report on Network Change and Configuration Management (NCCM) written by EMA's Dennis Drogseth. This report discusses the latest developments in the NCCM market, including an in-depth look at DeviceAuthority Suite, a comprehensive solution for configuring, changing, and controlling today's complex, multi-vendor IT network infrastructures. Download the report today to learn how you can leverage NCCM to reduce the cost and complexity of managing network change. http://www.fattail.com/redir/redirect.asp?CID=73303 _______________________________________________________________ ARCHIVE LINKS Archive of the View from the Edge columns: http://www.nwfusion.com/edge/columnists/index.html _______________________________________________________________ FEATURED READER RESOURCE WONDERING IF YOUR PAY IS UP TO SNUFF? Check out Network World's 2004 Salary Calculator to see if you're getting paid what you're worth. Using data collected in the 2004 Network World Salary Survey, we've programmed this calculator with several categories that could affect your pay. Answer the questions and find out what the average salary is for your job category. Click here: <http://www.nwfusion.com/salary/2004/calculator.html> _______________________________________________________________ May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. Apply today at http://www.subscribenw.com/nl2 International subscribers click here: http://nww1.com/go/circ_promo.html _______________________________________________________________ SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World e-mail newsletters, go to: <http://www.nwwsubscribe.com/Changes.aspx> To unsubscribe from promotional e-mail go to: <http://www.nwwsubscribe.com/Preferences.aspx> To change your e-mail address, go to: <http://www.nwwsubscribe.com/ChangeMail.aspx> Subscription questions? Contact Customer Service by replying to this message. This message was sent to: [EMAIL PROTECTED] Please use this address when modifying your subscription. _______________________________________________________________ Have editorial comments? Write Jeff Caruso, Newsletter Editor, at: <mailto:[EMAIL PROTECTED]> Inquiries to: NL Customer Service, Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 For advertising information, write Kevin Normandeau, V.P. of Online Development, at: <mailto:[EMAIL PROTECTED]> Copyright Network World, Inc., 2004 ------------------------ This message was sent to: [EMAIL PROTECTED] ------------------------ Yahoo! Groups Sponsor --------------------~--> $9.95 domain names from Yahoo!. Register anything. http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/BCfwlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/kumpulan/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
