DISQUS

All About Nortel: Nortel Ramps Up Enterprise Marketing

  • The Psychiatrist · 1 year ago
    They defintely have chosen the right time to make their assault on Cisco.

    Green and energy costs are factors that will remain at the forefront for quite some time,if not permanently.
  • less · 1 year ago
    "Earth Rangers is dedicated to environmental education that empowers children to make sustainable choices. Doing our part to save energy and maximize resources is important to us, so it is only natural that we would choose the most energy-efficient networking solution available. In addition to reducing our carbon footprint, the Nortel solution has enabled us to lower costs and to free-up those expenditures and apply them to our programs."

    Green Rangers rescuing children. Women. Minorities. The handicapped.
  • Another Nortel Watcher · 1 year ago
    I look forward to the ad from Huawei with the tagline "Huawei's carrier networks run with up to 60% less energy".
  • protospherical1 · 1 year ago
    A whopping $6.1B in what they creatively call an "Energy Tax" sounding like this is government tax on hydro or something? Over half a decade on the entire planet, how creative.

    "12-15 percent of total energy costs for enterprises are network related. A Nortel data network consumes up to 40 percent less energy than a comparable network from the main competition"

    (OK so 15% of 6 billion is $900M X 40% savings = $360M / 5 years = global saving of $72M a year, whoopie)

    They also try to sound convincing claiming this "not hype" and that this is "sound math". Hmmmm, why even mention this, wouldn't this go without saying.

    Now to claim Cisco's customers are blind to these savings is leading up to the punch line of buy Nortel instead.

    One can no longer Compare Nortel to Cisco, Nortel has barely 3B cash and Cisco bought SciAtlanta for a multiple of that, look at Cisco's sales and earnings compared to Nortel's sales and losses instead, and now with aging CDMA decline that accounts for the vast, vast majority of its earnings... well you get the drift, sounds desperate. Are the PR people risking careers too? =)

    Sure, buy Nortel at a time when their potential customers. yet again, question if they will even be around.
    Strikes me as their propaganda is becoming increasingly hysterical as desperate.

    Lets hope this "Nortel Efficiency Calculator" and their traditional sources are more reliable than their 3 to 5 year plan or $20 buying opportunities, WiMax aspirations, or leapfrogging 3G to 4G after selling UMTS, etc... the punch lines are endless

    How profound, what horsefeathers, what's next, also offering discounts on their products equal to a year of energy savings! ...yep =) ...sad stuff huh...

    I guess I agree with the most obvious here.

    "Roy Osterberg called Nortel vs Cisco energy comparisons “stupid and deceptive” accussing of “lying and miss-representation” for the purposes of marketing"
  • Shackled · 1 year ago
    Hey Proto.....how much exactly did you lose on Nortel? Being an employee I have to say I'm not a big fan either of some of the decisions being made, but based on your constant bashing I figure it must be in the 100's of thousands :) I feel sorry for your loss but maybe it's time to move on (or at least tone down your negativism). You're starting to sound like a bit of a lunatic. You should have that chip on your shoulder diagnosed...it may be malignant!
  • Bo Gowan · 1 year ago
    @proto - Your math is bad in your post. $6.1 Billion is the estimate for the amount of additional energy costs that the existing Cisco customer installed base could have saved over the last five years if they had used a similar Nortel network.

    $6.1B is the end savings, not the beginning number to start dividing up the way you do. That's pretty clearly stated in the press release, as well as in my blog post about it yesterday here: http://tinyurl.com/5pcr5k
  • Tongue.In.Cheek · 1 year ago
    Bo, Proto is a well known Nortel hater.
    His mission: to see Nortel destroyed
    His tactics: manipulate, embellish and fabricate anything to make Nortel look bad.
    His response: when challenged he will often attack the person whom challenges him.
    His support team: includes Apple, a frequent poster here who has directly attacked you on the Yahoo Finance message board.

    Most of us take everything Proto says with a huge grain of salt since he is obsessed with wanting to see Nortel destroyed.
  • Please · 1 year ago
    Bill-- I think the idea is with rising energy prices, the people with P&L responsibility will start to ask the CIOs &etc "what are you doing about energy efficiency?" Kind of the NEW New Economy, if you will. ;-)

    Time will tell, of course. $150/barrel of oil is already starting to sound like so-last-month's news!
  • Bo Gowan · 1 year ago
    @bb - you're not the first to question how much energy efficiency can really have an effect on sales. Keep in mind that it's still early -- we only started focusing on EE as a key message in the Spring -- but here are some data points that I posted recently on Buzzboard here: http://tinyurl.com/5pcr5k

    * This program [energy efficiency] has contributed to strong momentum in Nortel’s North American enterprise data business, including a four-fold increase in organic leads and a 42% increase in sales funnel, prompting Nortel to extend the program to a full global launch.
    * Our enterprise data orders increased 22% in Q2 over Q1. And while we will not go so far as to make a direct causal tie between the two, this provides a good indication of the positive momentum we are seeing with customers.
    * Based strictly on the NEEC itself, we are pursuing an additional 400 discussions per month with prospects that would not have taken place otherwise.
    * And of course we continue to announce new customers that say our energy efficiency advantage is important, including recent wins with the New York Mets and the 2012 Olympics in London.
  • Another Nortel Watcher · 1 year ago
    Bo - I'm not one of the doubters about the ee campaign in the enterprise space. Anybody who wants to take share from Cisco needs to find ways to change the game and energy efficiency seems like as good a lever as any to pull on.

    My issue/concern/worry continues to be that this strategy is being executed while still half-baked because I firmly believe it's going to bite you in the butt in the carrier space. Does Richard Lowe have a position yet? If your competitors label him as the energy hog of the industry, do you even know if that's accurate? I gotta tell you, if I were Chambers, I'd be preparing a full page ad in the right publications to reveal Nortel's NET energy efficiency, which I believe would shut down the enterprise advantage. Where's the data... do the homework. I await the numbers. Tap, tap, tap....
  • exnt2 · 1 year ago
    Nice ads. if true, how would this sell if the Cisco train just discounts their products equal to the energy saving, until they tweak their products?

    if you cannot answer this genuinely, you are still going to get crushed.
  • less · 1 year ago
    Its rumored that the price of CCNA courses at the local community college have gone down, while finals have spiked.

    Would Nortel give a crap about my cert at all, as other recuiters do, or perhaps offer me a raise or sign-on bonus to offset the added cost of tuition?
  • Fins · 1 year ago
    A mere martkeing "campaign" versus a superior marketeering company is not my idea of a shift in momentum. Wrong battlefield to draw Cisco out on. Sorry. Even if the calculators are dead on accurate, does one think Cisco cannot buy chips, dsp's, fpga's, bent metal, power supplies cheaper than NT? There are 5-7 ODM's that everyone gets there designs from. It's not a mystery. Combine lower COGs with a leap frog campaign, mix in an agreesive technology migration finance program from Cisco capital and put it into the hands of 10k screaming Cisco sales folks(versus 1400 Nortel enteprise sellers). Not negative on the hard work that people put into the effort, it's just too shallow to be sustained. I wish NT all the best though. Ya' gotta try.
  • broadbandbill · 1 year ago
    Yo Bo,

    Perhaps I am showing my ignorance but isn’t the gear being sold by Cisco/Nortel, et al bought by CIOs (or their Carrier equivalents) whose budgets only includes networking gear and support and NOT facilities costs (i.e.: energy cost).

    Unless the sales process has changed and now has to be cleared by facilities management, Nortel has little chance to make any dent against a Cisco machine that understands the sales process better than anyone on this planet.

    Let’s not forget that even though Chambers has a law degree, he made his name as a bag-carrying salesman at both IBM and Wang and his first job at Cisco was EVP/Global Sales. Nortel will not wipe out Chambers’ smirk off his face with this well-intended but miss-guided campaign. Besides, the laws of thermodynamics are NOT the sole domain of Nortel. Sales Bo, sales; not convention-cooling gimmicks that anyone can duplicate.

    bb
  • broadbandbill · 1 year ago
    Please,

    That sound plausible at the intellectual discussion level. No CIO will ever get fired for buying Cisco even if it means pissing the P&L guys off. Can you just imagine the boardroom conversation: “Mr. President, when your email does not work, should I tell you just how much money we saved on energy costs?”.

    Marketing campaigns must be rooted in reality as it relates to the sales processes from top to bottom. Having previously worked with top Cisco sales guys I can assure you they have already countered that one where it counts— the actual battlefield. Bet you they even have jokes about the ‘energy tax’ with their customers at Nortel’s expense.

    No better example of swallowing your own cool-aid, albeit at half the joules it takes for swallowing Cisco’s cool-aid, which, of course, has twice the calories :).
    bb
  • broadbandbill · 1 year ago
    Bo,

    Appreciate your input but, putting my skeptic hat on, I can also contribute the increased sales prospects on: (i) global warming; (ii) declining dollar; (iii) Hackney’s leadership; (iv) Cisco’s arrogance; (v) my rants – all of which coincide with Nortel’s increased sales prospects. I admit that (iii) and (v) are long shots but wanted to make a point.

    I still go back to strategy, which was established by Riedel shortly after his arrival. Perhaps that’s the real reason and the rest is just one fortuitous coincidence or after-effect. In the end being lucky is just as good as being good, perhaps even better. Still, not convincing enough! So here’s an idea – pay me for more of my rants and we both might do even better…-- bb