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Alcatel-Lucent Enterprise: The Carrier StoryAlcatel-Lucent Enterprise: The Carrier Story

Carrier solutions are bringing big dollars to the enterprise division, ALU execs say.

Sheila McGee-Smith

April 7, 2011

2 Min Read
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Carrier solutions are bringing big dollars to the enterprise division, ALU execs say.

Monday morning I tweeted from the Alcatel-Lucent Enterprise Dynamic Tour 2011 event, "Finally! A strong story from Maria Pardee, Global Acct. strategy from #ALUEnterprise on the value of the carrier assets in the enterprise biz." The "finally" referred to a platitude that has been heard from communications solutions companies with carrier and enterprise divisions repeatedly over the last ten years: that there are synergies between the two businesses.

Lucent apparently didn't believe in synergies back in 2000 when they chose to divest themselves of the enterprise business and divested what is now Avaya. Nortel tried to pitch the benefits of having both businesses, but its carrier and enterprise businesses ended up being worth more individually than together as well. When Alcatel bought Lucent they too got on the bandwagon of the synergies to be had from the two portfolios, but until recently, there was no substance to the claim. And who can forget Siemens LifeWorks, "removing the fragmented communication experience of users and the barriers between private and public networks."

The problem with the notion of eliminating the barriers between public and private networks is that the service providers weren't really interested--and it couldn't happen without them. What's happening now is that large organizations are becoming their own carriers. In verticals like healthcare, utilities, education and government, single or multi-campus networks are being built using private cable over right-of-way or leased dark fiber.

Carrier solutions are bringing big dollars to the enterprise division. Maria Pardee, ALU-E's SVP for Global Account Sales told analysts that about 30% of the revenue she is driving from Global 50 accounts is coming from the carrier routers and switches being sold to companies like University of Pittsburg Medical Center.

In the video below, Dave Richards of Alcatel-Lucent's Internet Products Division in Ottawa talks about why his business and products were represented in the Exposition Hall in Barcelona.

About the Author

Sheila McGee-Smith

Sheila McGee-Smith, who founded McGee-Smith Analytics in 2001, is a leading communications industry analyst and strategic consultant focused on the contact center and enterprise communications markets. She has a proven track record of accomplishment in new product development, competitive assessment, market research, and sales strategies for communications solutions and services.

McGee-Smith Analytics works with companies ranging in size from the Fortune 100 to start-ups, examining the competitive environment for communications products and services. Sheila's expertise includes product assessment, sales force training, and content creation for white papers, eBooks, and webinars. Her professional accomplishments include authoring multi-client market research studies in the areas of contact centers, enterprise telephony, data networking, and the wireless market. She is a frequent speaker at industry conferences, user group and sales meetings, as well as an oft-quoted authority on news and trends in the communications market.

Sheila has spent 30 years in the communications industry, including 12 years as an industry analyst with The Pelorus Group. Early in her career, she held sales management, market research and product management positions at AT&T, Timeplex, and Dun & Bradstreet. Sheila serves as the Contact Center Track Chair for Enterprise Connect.