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Nortel makes professional services push

February 11, 2000
Web posted at: 8:43 a.m. EST (1343 GMT)

by Cathleen Moore


(IDG) -- Nortel Networks Wednesday staked out turf in the professional services market with the launch of its Global Professional Services organization and an acquisition of a business consulting company that further strengthens its position in the services and ASP (application service provider) space.

  AT&T, IBM move to bolster ASPs
  Nortel targets new market for broadband
  Telcos rush to stake claim in ASP market
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"One of the things we are hearing from our customers is that [they] want [us] to provide more value in terms of building the solution around the infrastructure," said Kannankote Srikanth, president of Global Professional Services at Nortel. "We decided to put together an aggressive campaign around professional services. We have seen strong customer demand for value-added solutions and demand for an organization that gives a partnership that ensures their infrastructure is taken care of so they can focus on their business."

Nortel said the organization will be global in scope and will target both carriers and enterprises. Specifically, Nortel plans to deliver professional services in areas such as ASPs, Internet data centers, network convergence, and optical networking.

The Global Professional Services organization's offerings will fall into five groups: Internet infrastructure services; network-enabled transformations; service-enabled solutions; e-customer care; and managed network services, according to Nortel.

"In Nortel we had multiple professional services organizations and we are consolidating these. We will be very focused around specific areas of our customers," Srikanth said.

Nortel said it will acquire Dimension Enterprises Inc. (DEI), an engineering and business strategy consulting company, for approximately $64.5 million in cash. DEI, based in Herndon, Va., specializes in business strategy consulting, Internet security, IP networking, enterprise application integration, and Internet data center implementation.

Nortel said it plans to use DEI's consulting strengths to improve its ASP offerings, called the Managed Applications Services Initiative, which was announced in December. In addition, the company said the acquisition will help Nortel provide technology and services to design and build Internet data centers, part of its ASP strategy development.

"One key element is the concept of having the capability to build the best in class Internet data center," Srikanth said. "There was a big gap in terms of Nortel's capabilities around that. And the network edge is moving closer to the data center anyway."

"We saw the gap that is critical for us to fill and Dimension was acquired as part of that strategy," Srikanth said.

DEI's customers include AT&T, BT, iPass, and Global One.

Nortel targets new market for broadband
February 4, 2000
1999 networking power-o-meter
December 30, 1999
Optical links attracting attention
December 21, 1999

Nortel Networks aims to fix "broken" Internet
(Computerworld Australia)
Nortel targets new market for broadband
Nortel rolls out IP systems for small business
AT&T, IBM move to bolster ASPs
(Network World)
Nortel to invest $400 million in Optical Networking
Software start-up looks to aid professional services
Nortel ends 1999 on strong earnings
Telcos rush to stake claim in ASP market
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