All About Nortel - Latest Comments in “The Godfather” Joins Nortel

Re: “The Godfather” Joins Nortel

scalpcutter — Tue, 10 Feb 2009 17:27:11 -0000

I can already hear the discussion at the BOD conference room.

MikeZ: Mister Manley, one of our key goals for this restructuring process is to open more Nortel shops, bring in more CM and import more Nortel people into Mexico. Specifically we are looking at Juarez where all the current drug cartel executions are happening. Real estate is dirt cheap there for obvious reason. And when I say dirt I mean dirt, as in "six feet under".

John Manley: Great Job. I see we've appointed another exec in Mexico. I know we are turning the corner. We must not have jobs in Canada. As a member of the liberal party I am a firm believer in helping out people from other countries before we look at our own. My disciple Dalton McGuinty as the leader of Ontario oversaw a job loss of 70k in Ontario alone in january. More than half of what the entire country lost. Canada on the whole lost far more jobs than the united states when you factor population comparisons into the ratio. I am recommending to the Board tonight that we hire Dalton immediately.

Mike Z: Yes the operation should be up and running soon. We have dedicated scrap depots since we know alot of that will be made. But when you are paying in pesos and burrittos it doesn't really matter. Quality is not Job 1.

John Manley: Thanks Mike. Would you care to join me at Taco Bell?

Re: “The Godfather” Joins Nortel

exnt2 — Tue, 10 Feb 2009 17:02:28 -0000

they got rid of the prev guy and probably hired someone really cheap. but hiring a CEO for Mexico does not make any sense. how much biz comes out from latin america. one would have thought they would shut down all this including the bloated florida office to support the region.

Re: “The Godfather” Joins Nortel

tryn2makealivin — Tue, 10 Feb 2009 16:32:54 -0000

http://www2.nortel.com/go/n...

And yet another exec hired....the hiring freeze is working out real well so far.

Re: “The Godfather” Joins Nortel

1derY — Tue, 10 Feb 2009 08:30:17 -0000

Agree..Either he has been quelled in the cabinet by the Carolina's gane or he's the most self-effacing VP ever...We haven't heard anything useful from Reidel...

He's a skeleton in the closet...let's keep him there.

Re: “The Godfather” Joins Nortel

protospherical1 — Tue, 10 Feb 2009 03:12:23 -0000

Another wonderful career brought to ruin by Nortel... shame.

Re: “The Godfather” Joins Nortel

broadbandbill — Tue, 10 Feb 2009 00:13:08 -0000

I agree that he has NOT stepped up and made his presence count but he can’t go back to McKinsey; he now knows too much about the real world to ever be content there.

He has disappointed me but I haven’t given up on him yet. Riedel is the ONLY shot NT has at getting the enterprise unit right…--bb

Re: “The Godfather” Joins Nortel

McBeese — Tue, 10 Feb 2009 00:03:42 -0000

Please, No! I might have agreed with you at one point but Riedel has been so invisible and ineffective at Nortel that I just cannot support him for a strategic role. By now he should have either made his mark at Nortel or left if Mike Z was in the way. It's time for Riedel to go back to McKinsey where he will feel comfortable surrounded by other irrelevant strategists.

Re: “The Godfather” Joins Nortel

broadbandbill — Mon, 09 Feb 2009 23:46:34 -0000

NOT the creditors! They are already chatting w/top telecom analysts and that does NOT include McKinsey, et al. The creditors have HAD it w/these overpaid amateurs.

But I agree with Enterprise spin-off and I think Riedel is the guy that ends up running it. Private equity guys like his background…--bb

Re: “The Godfather” Joins Nortel

1derY — Mon, 09 Feb 2009 23:37:53 -0000

I think LonelyOpsGuy is on the right track there...Whether the Hackman will successful in coercing people into the trap or not is the question..I think he's sly enough to pull this one over the inept BoD and the creditors...Either you go bankrupt and have a small company that's growing.....take it or leave it....He has nothing to lose.

I think they will spin off intoNortel Enterprise company and do the firesale on the other LOBs after the house cleaning.

Re: “The Godfather” Joins Nortel

Got_Out — Mon, 09 Feb 2009 22:28:33 -0000

Enterprise is appx 25% of Nortel. Was once bigger (the Bay acq), but has been the same % for years now. One of the challenges for the Enterprise group has always been that Nortel is essentially a Carrier company. 75% of the business comes for Carriers (Wireline, Wireless, Optical). The leadership of the corp has always been driven by Carrier and that business. Every few years, someone gets the bright idea to make Enterprise more like Carrier. Fails miserably, every time. The two are fundamentally different businesses and must be run differently to achieve success. You cant compete with the likes of Cisco (who are an Enterprise focused company) with the the Carrier mentality of the 80's and 90's.

Hackney seems to have removed most of the the experienced Enterprise leadership (and intimidated the next layer down). Guys like Downing may be good leaders in Carrier, but dont have the industry, product or business experience to drive market leadership in the very different Enterprise space. However, buckling to bullies like Hackney does seem to have its rewards.

The Carrier dominance in Nortel (despite the loss of market share and profitability) has always been a major limiter on Nortel's Enterprise Business. The two Garys knew it and wanted to free the business and make Nortel more of an Enterprise driven company. Still have to believe that the we wouldnt be in the CCAA and Chapter 11 space if they hadn't been chased out.

Re: “The Godfather” Joins Nortel

less — Mon, 09 Feb 2009 20:28:32 -0000

Lastly:

F5 Networks, in a move to give customers the flexibility to choose a secure multi-vendor IT environment instead of costly proprietary models, announced that it has become a member of the HP ProCurve Open Network Ecosystem

In a move designed to provide customers with flexible and cost-effective options for integrating Unified Communications and IP Telephony solutions into networks, Avaya today announced it has entered into a strategic alliance with HP ProCurve.

Look out Cisco -- Hewlett-Packards new Business Class Consultant (BCC) program adds ProCurve switches to the PartnerONE rebate program for reseller partners, HP's Solution Partners Organization (SPO) announced Tuesday.

Nortel customers can expect vendors such as Cisco Systems and HP ProCurve to target them aggressively, according to Nick Lippis, CEO of consultancy Lippis Enterprises.

"When Nortel filed Chapter 11 bankruptcy, there was a de facto vacuum in the marketplace," Lippis said. "I think what we'll see is: Their enterprise networking business has always been under attack, but it's going to be under increasing attack by Cisco and HP ProCurve."

Re: “The Godfather” Joins Nortel

less — Mon, 09 Feb 2009 20:20:29 -0000

Barker said McHugh was in touch with the channel and easily accessible. The quick access and communication will be missed, he said, adding he had nothing but respect for McHugh's integrity and down to earth attitude.

"They just need to make sure they don't forget how they got to where they are and who their customers are," he said, calling ProCurve one of the industry's best success stories

Good luck with Nortel, John cuz:

[Said] Zeus Kerravala, Yankee Group senior vice president: "McHugh did a great job of taking ProCurve from nothing to the No. 2 switching vendor," he said. "Growing the company as basically a startup is a different skill set than taking the company and growing it into one company with a broader portfolio and more of a solution sell. Growing ProCurve now requires competing much more with Cisco and growing the channel."

Kerravala speculated that McHugh may have felt he completed his tasks with ProCurve, once the vendor hit a solid No. 2 position to Cisco's dominant No. 1.

Uh, Nortel is not a startup by any means. Its always been well ahead of Cisco in virtually everything but electricity bills.

Re: “The Godfather” Joins Nortel

less — Mon, 09 Feb 2009 20:08:30 -0000

So what happened to John McHugh?

Nobody's talking, especially not HP ProCurve, as they only released the following statement to yours truly:

John McHugh - HP ProCurve vice president and worldwide general manager, has left the company.
In the interim, HP ProCurve has named Bret Cromwell as acting general manager.
Cromwell was previously worldwide controller for HP ProCurve, and for the past six years, has been a key member of HP ProCurve’s executive staff, responsible for all aspects of HP ProCurve’s finance, accounting and IT activities.

So wheres ProCurve without him today? Lessee....

Re: “The Godfather” Joins Nortel

tryn2makealivin — Mon, 09 Feb 2009 20:03:13 -0000

Silverlake rumors have been going on since December at Nortel?

Re: “The Godfather” Joins Nortel

less — Mon, 09 Feb 2009 19:58:31 -0000

I'm jaded enough to assume he got hired to provide distraction, not that he is proof postive that Nortel is on the mend. Sure, he may be able to work a little magic here and there, but - Nortel just keeps getting more and more top-heavy.

Twas the existing brass thats paraded several much-ballyhooed names through what amounted to no more than all-expenses paid, well, package tours of Nortel.

Re: “The Godfather” Joins Nortel

broadbandbill — Mon, 09 Feb 2009 19:37:15 -0000

Transparency left him long time ago...--bb

Re: “The Godfather” Joins Nortel

Desk Jockey — Mon, 09 Feb 2009 18:50:56 -0000

Hackney is so out of his element that it isn't funny. This was painfully clear in that interview he gave with that website a few days ago. All he knows how to spout is Six Sigma buzzwords and even then I'm not sure he knows what they mean.

I don't know much about this Downing fellow but I can't imagine him being worse.

Re: “The Godfather” Joins Nortel

Desk Jockey — Mon, 09 Feb 2009 18:46:30 -0000

I agree, if creditor's have a say then Hackney will not go anywhere near leadership. Most people wouldn't trust this guy to walk their dog, why would you trust him to run a company?

Bottom line is, if Mike Z leaves then so does Joel since the two are like Dumb and Dumber.

Re: “The Godfather” Joins Nortel

TarheelBornGal — Mon, 09 Feb 2009 18:44:55 -0000

Good question! I found it interesting that this happened "last month" but just now made the press. And there was absolutely *no* internal announcement. Normally there is much fanfare when someone with a "name" from outside the company joins Nortel. No announcement at RTP at all, despite the fact that McHugh will be based in Raleigh. Something does smell a bit fishy about this one...so much for the "transparency" the Z-team keeps promising us!

Re: “The Godfather” Joins Nortel

Casual_Observer — Mon, 09 Feb 2009 18:21:29 -0000

I saw these comments as well. I knew somoene would post them :-) It looks like the channel/business side liked him while line workers despised him for the culture he created. There are so many factors in this. The comment about price and not technology is telling. HP has a renewed focus on advanced technology with the CTO office driving many new initiatives. They probably feel like they didn't lose much with him. If he is cost focused, he should fit nicely as Joel's lapdog.

Re: “The Godfather” Joins Nortel

scalpcutter — Mon, 09 Feb 2009 18:20:55 -0000

This really is disgusting.
Bad Enough that AAN has to put stories about Nortel execs on here but to extol
in the hiring of another one really is a kick in the N**S to employees.
This McHappy Burger looks like he has an ego. He looks the role!!
I can imagine how he really operates.
Can you blame him coming to nortel.
Even in company under bankruptcy protection he will get a big bonus, perks and a huge salary. This guy is now in the company that treats CEO's and execs like Gods. Why wouldn't he go there.
400 plus million in payouts according to the ottawa citizen.
This guy knows the pie is sweet and he intends to splurge to excesses.

Re: “The Godfather” Joins Nortel

broadbandbill — Mon, 09 Feb 2009 18:12:40 -0000

I'll take that bet. Once again, the creditors are a lot smarter than the BoD; they have a real stake in this (unlike the Board)..--bb

Re: “The Godfather” Joins Nortel

exnt2 — Mon, 09 Feb 2009 17:59:08 -0000

went through the crn article. he left in june 2008!!!!! comments show he is a clone of Joel. sounds like he was fired.

--
John McHugh was a horrible sub par manager. He had a serious napoleon complex that ran a tiny division of HP based only on price and not technology. He turned procurve into smc. He ran procurve like the wild west where groups fought each other non stop. They lost 70% of their workforce due to his incompetency. No love loss at procurve for him. Go join carly in waiting on politicians like a lap dog.
--
McHugh was an egomaniac. Good riddance
--
I need to agree with the individual above with the "Don't let the door hit you" comment. As a former employee of ProCurve, I can tell you the culture is toxic. It is a Back Stabbing culture and employees are encouraged to throw each other under the bus. I can tell you this is a good thing for the employees of ProCurve and a good thing for HP. I can list several other managers in the organization that should join John in the unemployment line. Long live Bill and Dave!

Re: “The Godfather” Joins Nortel

DerDoppelganger — Mon, 09 Feb 2009 17:58:38 -0000

Make no mistake. Downing is another chameleon just like Lowe. AND there are other 'chameleons' roaming around senior level, just waiting for the next best opportunitiy to move up the ladder and suck Nortel dry.

Re: “The Godfather” Joins Nortel

TongueInCheek — Mon, 09 Feb 2009 17:54:49 -0000

Could private equity folks already be in charge ?

Maybe, but I tend to think that a new 4-way entity will emerge from this as an Enterprise player. The players would be. The Gores Group who owns Enterasys, 51% of Siemens Enterprise and Nortel Enterprise, re-packaged with a new brand name in the marketplace.

I also wouldn't be surprised to see Silver Lake and TPG Capital extend their play through an acquisition of Extreme Networks, combining them with Avaya for a more complete Enterprise play.