Nortel and Microsoft Form Strategic Alliance

REDMOND, Wash. and TORONTO - Microsoft Corp. and Nortel formed a strategic alliance based on a shared vision for unified communications. The alliance will allow both companies to drive new growth opportunities.

Nortel and Microsoft will transition traditional business phone systems into software, with a Microsoft unified communications software platform and Nortel software products to provide further telephony functionality.

Components of the Agreement

• Strategic alliance 
  • The companies will enter into a four-year alliance agreement, with provisions for its extension. 
  • Nortel will be Microsoft's strategic partner for advanced unified communications solutions and systems integration. 
  • The two companies will form the Innovative Communications Alliance as a go-to-market vehicle. 
  • Microsoft and Nortel will deploy each other's technologies in their enterprise networks.
• Solutions and systems integration 
  • Nortel becomes a strategic systems integration partner for the unified communications solution. 
  • Nortel will have service offerings such as convergence planning, integration, optimization, monitoring and managed services. 
• Joint product development 
  • Nortel and Microsoft will form joint teams to collaborate on product development that spans enterprise, mobile and wireline carrier solutions.
  • The two companies will cross-license intellectual property. 
  • Nortel and Microsoft will engage in early-stage integration and testing. 
  • Nortel will deliver solutions, including enterprise contact center applications, al telephony functions, mobility capabilities and data networking infrastructure. 
• Go-to-market initiatives 
  • Microsoft and Nortel will jointly sell the unified communications solution and integration services. The plan is to develop a training and incentive program for the companies' sales teams. 
  • Both companies will invest resources in marketing, business development and delivery. 
  • Microsoft and Nortel will build a joint channel ecosystem using both companies' systems integrator, reseller, and service provider relationships. 
  • The two companies will develop a series of compelling solutions for a range of customers, including small and medium-sized business, large corporations and service providers.  

  Nortel Establishes New Operational Model

  TORONTO - Nortel [NYSE/TSX: NT] has established a new operational model for its global services business unit with four service product groups focused on global business development - Network Implementation Services, Network Support Services, Network Managed Services and Network Applications Services. It also includes two business solutions groups to drive vertical market solutions and to create new services capabilities through Nortel's services partner ecosystem - Network Business Solutions and Network Partner Solutions. Nortel is also investing in its services tools and core processes using a Lean Six Sigma approach.

  The company is also establishing local accountability for resource planning, skills development and acquisition, cost management, sales effectiveness, and customer satisfaction.