Nortel: shunning direct cost us deals

 

A senior Nortel executive has admitted that the company's past reluctance to market directly to large businesses has cost it enterprise share.

A senior Nortel executive has admitted that the company's past reluctance to market directly to large businesses has cost it enterprise share.

"We lost a number of major customers because of our reluctance to engage directly," Malcolm Collins, president of the enterprise networks division at Nortel Networks, said during a brief visit to Australia.

Collins, who heads up all of Nortel's enterprise activity following a recent streamlining of the company into service provider and enterprise channels, calculates that Nortel is probably second overall in the market behind Cisco, which dominates the sector on every analyst's reckoning.

Collins has no immediate ambition to topple Cisco from that position. "We believe we can double or triple market share," he said. "The marketplace is screaming for a choice."

A key element in that push is a shift away from a purely partner centric model. Around 60 per cent of Nortel staff are now in customer facing roles.

"Right across the globe, Nortel is taking a much more proactive view of direct touch," Collins said, though he was quick to add that this would "not to the detriment of our partners".

More than 95 per cent of business continued to be realised through partners even if the deal was brokered directly, he said.

"A lot of major vendors want to deal with the vendor but are happy for the implementation to be done by the channel," said Nick Avakian, ANZ general manager for enterprise networks.

"It was a big concern to our partners, but they've seen that we've done it in an honourable way," Collins said. Nortel's biggest local rollout partner is 3D Networks, and Commander is also a major player.


 
 
 
Top Stories
Meet FABACUS, Westpac's first computer
GE225 operators celebrate gold anniversary.
 
NSW Govt gets ready to throw out the floppy disks
[Opinion] Dominic Perrottet says its time for government to catch up.
 
iiNet facing new copyright battle with Hollywood
Fighting to protect customer details.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
In which area is your IT shop hiring the most staff?




   |   View results
IT security and risk
  26%
 
Sourcing and strategy
  12%
 
IT infrastructure (servers, storage, networking)
  22%
 
End user computing (desktops, mobiles, apps)
  15%
 
Software development
  25%
TOTAL VOTES: 346

Vote
Would your InfoSec team be prepared to share threat data with the Australian Government?

   |   View results
Yes
  58%
 
No
  42%
TOTAL VOTES: 144

Vote