Nemertes Impact Analysis

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Pingtel Acquisition Strengthens Nortel's SMB Capabilities

Nortel Networks' (NYSE:NT) acquisition of Pingtel from Bluesocket underscores
the growing importance of unified communications for small businesses. Nortel
has used Pingtel's code to support its Software Communications Server 500 (SCS
500), a software-based UC solution sold through channels such as Dell and IBM.
By acquiring Pingtel, Nortel takes ownership-and direction-of Pingtel's
code-base.

Small and midsize businesses are adopting UC at roughly the same rate as
their larger counterparts, with about 82% of participants in the Nemertes'
Unified Communications and Collaboration research either planning or
starting to deploy UC, vs. 84% of the entire pool of participants.

Impacts:

Enterprises: Consider SBS, as it's a compelling and flexible alternative to
appliance-based options.

Vendors: Make sure your UC portfolio can compete in the growing SMB space.

Investors: Keep an eye on startup UC vendors targeting the SMB market,
including privately held CommuniGate Systems and Objectworld.

Irwin Lazar, Principle Research Analyst

http://www.nemertes.com/ongoing_research/unified_communications_and_collaboration
http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100244956&locale=en-US