Nemertes Impact Analysis:

In an effort to compete with Cisco (NASDAQ: CSCO) and privately held Avaya in the North America large enterprise UC market, Siemens (NYSE: SI) will announce a distribution agreement with one of North America's larger network solution providers, privately held Shared Technologies, to sell its OpenScape platform. Shared’s move to expand its UC offerings underscores demand for multi-vendor solutions. It also puts Siemens in good position within Nortel’s base, as more than a third of the Nortel base in North America is a customer of Shared.

Many companies operate a multi-vendor communications environment, deploying disparate legacy systems, IP PBXs, and platforms across locations. Integration is a key issue and 46% of organizations say they want a solution that easily ties into the current telephony infrastructure.

Impacts:

Enterprises: Grill your vendors for integration strategies. Nortel customers, especially, should look for resellers with multiple options.

Vendors: Integration is key. This move better positions Siemens to compete for Nortel’s installed base.

Investors: Put’s competitive pressure on Cisco (NASDAQ:CSCO), ShoreTel (NASDAQ: SHOR) and especially Avaya (privately held).

By Katherine Trost, Research Analyst

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