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Nortel, Microsoft form new communications alliance

Microsoft Corp. and Nortel Networks Inc. today announced a strategic alliance based on what they described as a "sh...


July 18, 2006  


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Microsoft Corp. and Nortel Networks Inc. today announced a strategic alliance based on what they described as a “shared vision for unified communications.

“The alliance will accelerate the availability of unified communications – an industry concept that uses advanced technologies to break down today’s device- and network-centric silos of communication (such as e-mail, instant messaging, telephony and multimedia conferencing) and makes it easy and efficient for workers to reach colleagues, partners and customers with the devices and applications they use most,” the two companies said in a joint statement.

Nortel and Microsoft say they will transition traditional business phone systems into software, with a Microsoft unified communications software platform and Nortel software products to provide further advanced telephony functionality.

“This is a gutsy play for Nortel — accelerating the move of our voice technology into software and working with the world’s software leader as part of our broader business strategy to transform the company into a software and services leader,” said Mike Zafirovski, CEO of Nortel.

“From this transaction, we believe we can capture well beyond $1 billion in new revenue, ramping up with increased momentum through 2009 via professional services, voice products and applications, as well as data pull-through in the enterprise.”

Unified communications will drive the next major advance in individual, team and organizational productivity in today’s 24×7, always-connected and increasingly mobile work environment, said Jeff Raikes, president of the Business Division at Microsoft.