Nortel's former unit growing under Avaya

Dylan Bushell-Embling | April 30, 2010

telecomseurope.net

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The data networking business that was once part of Nortel's Enterprise Solutions group is performing strongly under new owner Avaya, lifting its earnings 30% in Q2.

The government arm of the business meanwhile grew 15%, as the unit emerges from Nortel's bankruptcy.

In an interview with NetworkWorld, unit president Joel Hackney said that its new parent company has been treating it well.

“Avaya is committed to the data business,” he said.

When Avaya acquired Nortel's enterprise assets for $900 million last year, some analysts suggested that it would be better off divesting the data networking operations arm, but Avaya had different plans.

Hackney added that Avaya may be a better fit for the unit than Nortel ever was, because Avaya is more committed to the enterprise market whereas Nortel always placed its carrier business first.

Avaya this week unveiled a range of new networking products, including an Ethernet routing switch, a gateway for Cisco's ISR routers, and an 802.11n wireless LAN controller.

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telecomseurope.net

Dylan Bushell-Embling

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