Cisco to acquire Nortel?

Discussion in 'VOIP' started by Ramon F Herrera, Oct 13, 2005.

  1. Yesterday in Houston, a Nortel representative said to a customer that a
    Cisco acquisition of Nortel is in the works. He added that Nortel has
    been restructuring itself in anticipation to the acquisition.

    Since I am at the Asterisk conference, I presented the above as a
    question to one of the conference speakers, who happens to be very
    knowledgeable about the two companies. His answer? "I have heard that
    claim before but I'll believe it when I see it... Nortel's hardware is
    excellent but its software sucks".

    Any comments?

    -Ramon F Herrera
    Ramon F Herrera, Oct 13, 2005
    #1
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  2. Ramon F Herrera

    Jeff Pratt Guest

    Ramon F Herrera wrote:

    > Yesterday in Houston, a Nortel representative said to a customer that a
    > Cisco acquisition of Nortel is in the works. He added that Nortel has
    > been restructuring itself in anticipation to the acquisition.
    >
    > Since I am at the Asterisk conference, I presented the above as a
    > question to one of the conference speakers, who happens to be very
    > knowledgeable about the two companies. His answer? "I have heard that
    > claim before but I'll believe it when I see it... Nortel's hardware is
    > excellent but its software sucks".
    >
    > Any comments?
    >
    > -Ramon F Herrera


    Well, I guess the question is: "What does nortel have that cisco would
    want?" The only answers I can come up with are: customers, and an aging
    TDM platform that nortel's been trying to move all their customers off of.
    There really isn't all that much left that cisco doesn't already have.

    J
    Jeff Pratt, Oct 13, 2005
    #2
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  3. In article <MSu3f.10491$y_1.8345@edtnps89>,
    Jeff Pratt <> wrote:
    :Well, I guess the question is: "What does nortel have that cisco would
    :want?" The only answers I can come up with are: customers, and an aging
    :TDM platform that nortel's been trying to move all their customers off of.
    :There really isn't all that much left that cisco doesn't already have.

    The Baystack 5510 / 5520 switch series is faster than Cisco's corresponding
    offerings, and sells for about 40% of Cisco's street price.

    Why aren't we hearing a lot more about the 5510/5520? I'm not sure, but
    I'd guess that in part it's because the current layer 3 capabilities
    and QoS services are pretty limited. Cisco's 3550/3750 and related
    devices are swiss army knives compared to the 5510/5520.... but still,
    there's plenty of times where one just needs fast layer 2 plus a small
    bit of static layer 3, and Cisco cannot currently compete in that market.
    --
    I was very young in those days, but I was also rather dim.
    -- Christopher Priest
    Walter Roberson, Oct 13, 2005
    #3
  4. Hi Ramon,

    John Chambers and Cisco have the most successful "acquisition strategy"
    on earth.

    Nortel does not fit that strategy.

    Sincerely,

    Brad Reese
    BradReese.Com Cisco Repair Service Experts
    http://www.BradReese.Com
    1293 Hendersonville Road, Suite 17
    Asheville, North Carolina USA 28803
    USA & Canada: 877-549-2680
    International: 828-277-7272
    www.BradReese.Com, Oct 13, 2005
    #4
  5. In article <> "Ramon
    F Herrera" <> writes:

    >Yesterday in Houston, a Nortel representative said to a customer that a
    >Cisco acquisition of Nortel is in the works. He added that Nortel has
    >been restructuring itself in anticipation to the acquisition.


    >Since I am at the Asterisk conference, I presented the above as a
    >question to one of the conference speakers, who happens to be very
    >knowledgeable about the two companies. His answer? "I have heard that
    >claim before but I'll believe it when I see it... Nortel's hardware is
    >excellent but its software sucks".


    >Any comments?


    Sounds like another urban legend to me.
    Some years ago there was a rumor of Cisco looking to acquire Mitel. Most
    recently there was a rumor going around Houston that Houston-based HP
    might be wanting to put together a deal with Mitel. We've also heard
    stories of Foundry Networks looking at a Mitel acquisition. Houston is the
    rumor capitol of the free world. If you heard it in Houston it's got to be
    so. :)

    Personally I cannot imagine what Nortel might have that would interest
    Cisco. Maybe they'd want Nortel's old TDM technology so they could put
    together a hybrid (like the Mitel 3300) and thereby offer Nortel's legacy
    TDM customer base a less painful migration strategy to get to IP.
    wdg@[206.180.145.133], Oct 14, 2005
    #5
  6. Ramon F Herrera a écrit :
    > Yesterday in Houston, a Nortel representative said to a customer that a
    > Cisco acquisition of Nortel is in the works. He added that Nortel has
    > been restructuring itself in anticipation to the acquisition.
    >
    > Any comments?


    That sales rep wants you to buy Nortel products. His February trip to
    Cancun relies on it. Since you probably said to him that you had doubts
    about buying Nortel because you thought it was headed towards
    extinction, he just piped up that "don't worry, It'll be picked up by
    Cisco" to make you think that it would still be supported in the long run.

    --
    Francois Labreque | Unfortunately, there's no such thing as a snooze
    flabreque | button on a cat who wants breakfast.
    @ | - Unattributed quote from rec.humor.funny
    videotron.ca
    Francois Labreque, Oct 14, 2005
    #6
  7. In article <>,
    "Ramon F Herrera" <> wrote:

    > Yesterday in Houston, a Nortel representative said to a customer that a
    > Cisco acquisition of Nortel is in the works. He added that Nortel has
    > been restructuring itself in anticipation to the acquisition.


    If there really were an acquisition in the works, I think that everyone
    in the know would be required by the SEC to keep silent about it. So
    anyone talking about it would either be passing on a rumor or violating
    insider information laws.

    --
    Barry Margolin,
    Arlington, MA
    *** PLEASE post questions in newsgroups, not directly to me ***
    Barry Margolin, Oct 14, 2005
    #7
  8. Hi Ramon,

    Huawei Technologies is privately-held with sales of $5.5 billion in
    2004 that are expected to top $8 billion in 2005 --- this will leapfrog
    Nortel and be on the heels of Cisco in less than 3 years.

    Huawei international sales double every 12 months exceeding $2 billion
    in 2004.

    With 30,000 staff members worldwide, Huawei sales in Europe will triple
    in 2005:

    http://www.futurewei.com/index.asp

    Unfortunately, Nortel's future prospects are not to "robust" compared
    to this newcomer.

    Sincerely,

    Brad Reese
    Cisco Authorized Distributors Worldwide
    http://www.bradreese.com/cisco-distributors.htm
    www.BradReese.Com, Oct 14, 2005
    #8
  9. Ramon F Herrera

    Cisco Guy Guest

    Ramon F Herrera wrote:
    > Yesterday in Houston, a Nortel representative said to a customer that a
    > Cisco acquisition of Nortel is in the works. He added that Nortel has
    > been restructuring itself in anticipation to the acquisition.
    >
    > Since I am at the Asterisk conference, I presented the above as a
    > question to one of the conference speakers, who happens to be very
    > knowledgeable about the two companies. His answer? "I have heard that
    > claim before but I'll believe it when I see it... Nortel's hardware is
    > excellent but its software sucks".
    >
    > Any comments?
    >
    > -Ramon F Herrera
    >


    Frankly, Cisco's software blows pretty bad too in light of the premium
    we have to pay for their gear. I don't think anyone would argue that
    Cisco is best of breed in too much of anything - their hardware is slow
    compared to just about any vendor they go up against (perhaps the SUP
    1440 will help in that area). The big boys (ISP's and carriers) use
    Juniper. Their add-on products are even worse. CiscoWorks (or doesn't!)
    2000 is an example. CallManager is full of memory leaks and is almost
    impossible to keep at Microsoft's recommended patch level. One has to
    have a friggin' PhD to understand and follow their IOS trains. The
    quality of IOS, in particular, is downright maddening anymore. I have
    uncovered at least three bugs in the last two months, and only while
    cleaning up some EIGRP routing issues. We run VoIP and the quality and
    fragility (is that a word? hehe) of the IOS and it's relation to the
    hardware DSP's is nothing short of frustrating. Anyone every try to beat
    DSP's, IOS, and VoIP faxing into submission? Can I get a witness here? :)

    Despite my growing frustrating with Cisco, I still purchase their
    products and maintain my certification. Why? Well, I guess it's for two
    reasons. I get great support from our Cisco partner (SBC), and, Cisco
    has one thing that no other vendor has - a "soup to nuts" solution. I
    run a little of everything in my network - I've got an ONS15454 optical
    platform, 7200's, 1760's, 3700's, BGP, VoIP, PIX, MPLS, and all kinds of
    PSTN interfaces/H.323 gateway functionality. There is at least one other
    positive about their code - the featureset is indeed rich and support
    for diverse and demanding applications via QoS and other traffic control
    mechanisms is pretty darned good.

    To be fair, I can only imagine what it would be like to try to support
    the chassis and module/line card combos in Cisco's portfolio. However, I
    still think they REALLY need to work on the quality of their software if
    they aren't going to make up for their other performance deficits,
    especially when compared to other vendors.
    Cisco Guy, Oct 15, 2005
    #9
  10. Ramon F Herrera

    DPGumby Guest

    I know both HP and Foundry have partnership deals with Mitel, but other then
    that why would they want to buy the company?

    <wdg@[206.180.145.133]> wrote in message
    news:...
    > In article <> "Ramon
    > F Herrera" <> writes:
    >
    >>Yesterday in Houston, a Nortel representative said to a customer that a
    >>Cisco acquisition of Nortel is in the works. He added that Nortel has
    >>been restructuring itself in anticipation to the acquisition.

    >
    >>Since I am at the Asterisk conference, I presented the above as a
    >>question to one of the conference speakers, who happens to be very
    >>knowledgeable about the two companies. His answer? "I have heard that
    >>claim before but I'll believe it when I see it... Nortel's hardware is
    >>excellent but its software sucks".

    >
    >>Any comments?

    >
    > Sounds like another urban legend to me.
    > Some years ago there was a rumor of Cisco looking to acquire Mitel. Most
    > recently there was a rumor going around Houston that Houston-based HP
    > might be wanting to put together a deal with Mitel. We've also heard
    > stories of Foundry Networks looking at a Mitel acquisition. Houston is the
    > rumor capitol of the free world. If you heard it in Houston it's got to be
    > so. :)
    >
    > Personally I cannot imagine what Nortel might have that would interest
    > Cisco. Maybe they'd want Nortel's old TDM technology so they could put
    > together a hybrid (like the Mitel 3300) and thereby offer Nortel's legacy
    > TDM customer base a less painful migration strategy to get to IP.
    DPGumby, Oct 15, 2005
    #10
  11. Ramon F Herrera

    DPGumby Guest

    My question would be why? What does Nortel have that Cisco would want so
    desperately? Sure with the drop in Nortel's stock price it would be a
    relatively a cheap buy but again why? Cisco has usually been pretty smart in
    its buys but I don't know if buying Nortel would be considered smart. Do
    they want the base, their manufacturing capacity, engineering resources or
    their huge debt? Would they want Bay Networks portfolio? What hole in
    Cisco's offerings would the purchase fill? There has to be some kind of
    reason for a take over, Nortel is not exactly a small entity, they would
    still take a lot of money to purchase. You also have to remember the two
    cultures are completely different. Nortel is still from the old telco
    religion, everytime a data company has taken over a telco player it hasn't
    exactly been peachy. The data and telco worlds are still very differect
    mentalities.

    Me, I don't see it. Also I doubt that a "Nortel rep" would yak somethng like
    that even if true. " Yeah Cisco is buying us so why don't you run out and
    buy our stock before it jumps in price due to this merger" I don't think so.
    Maybe I see it in the Wall Street Journal, I take it seriously.


    "Ramon F Herrera" <> wrote in message
    news:...
    > Yesterday in Houston, a Nortel representative said to a customer that a
    > Cisco acquisition of Nortel is in the works. He added that Nortel has
    > been restructuring itself in anticipation to the acquisition.
    >
    > Since I am at the Asterisk conference, I presented the above as a
    > question to one of the conference speakers, who happens to be very
    > knowledgeable about the two companies. His answer? "I have heard that
    > claim before but I'll believe it when I see it... Nortel's hardware is
    > excellent but its software sucks".
    >
    > Any comments?
    >
    > -Ramon F Herrera
    >
    DPGumby, Oct 15, 2005
    #11
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