Yesterday, November 10th, Nortel announced a 'shakeup of sorts' after disappointing quarterly results, prompting a decentralization and large structure change at the company. These sweeping changes are resounding throughout not only the enterprise telephony industry, but other Nortel influenced markets including Carrier-Grade Systems and Metro Ethernet as well.
In addition, the highly-visible John Roese, the present CTO of Nortel will be leaving in January 2009. This decision comes as a response to the company's decision to vertically align and integrate its business structure.
What does this mean for the industry? We've all been aware of the recent changes and limitations invoked by the recent economic downturn, as industry giants like Nortel struggle to reorganize and adapt to the changing financial and market environments. In a recent post, I discussed the implications of the economic downturn on the telephony industry, titled "The New Economy Is Calling."
I firmly believe that this is a difficult time for 'big telecom'. Companies such as Nortel can most likely weather one major change: in the economy, or in market share, but with two severely changing variables, it becomes very difficult. This is not likely the only news we'll be hearing from Nortel, or other 'big telecom' vendors in the upcoming weeks and months.
The industry is asking many questions at this point: What is the future of companies such as Nortel? How will changes in their business structure, market focus, and financial health ultimately impact the customer?
Simply put, it's a 'wait and see' moment in where Nortel's strengths lie. With the rumors of the potential sale of the metro ethernet division, how successful will Nortel's re-organization and re-focus towards the Enterprise and Carrier markets be?
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Get out your fork.
Get out your fork.
Check out this Nortel Exec
Check out this Nortel Exec after being let go:
http://www.flickr.com/photos/32216121@N04/3012791497/
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