Reported Nortel buy could boost telephony share by 10 points
According to Canada’s Globe and Mail, Avaya is set to snap up Nortel’s enterprise business for $500 million. The deal would give Avaya 10 additional percentage points in revenue share in enterprise telephony, according to 1Q data from Dell’Oro Group.
That would give it a double digital percentage lead over Cisco as well — leader Avaya had 16.6% of the $16 billion market in 2008 to runner up Cisco’s 14%, according to Dell’Oro. Nortel came in 4th, with 9.6%, trailing Siemens at 11.4%.
Might Cisco swoop in on Nortel for a grab at leadership share? Why wouldn’t they if it meant leapfrogging Avaya vs. falling farther behind at No. 2 — and less that 3 percentage points from No. 3?
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