Nemertes Impact Analysis

The Impact Analysis is a weekly quick-take on breaking IT news. Nemertes provides expert insight on how recent IT news affects you.

Sign up to receive the Nemertes Impact Analysis or register for access to free web site content.

Gores Group Makes It's First Move Toward Becoming an Alternative to Cisco

Siemens AG (FRA:SIE) and private equity investor Gores Group have formed a
joint venture seeded with Siemens Enterprise Networks (SEN), Enterasys
(networking and security), SER (call center solutions) and a 350M (euro) war
chest. Gores Group will hold 51% in the joint venture and Mark Stone from Gores
will be the Chairman and interim CEO.

Enterasys and SEN are two companies with strong technology but weak market
positions, as underscored in Nemertes' Advanced Communications Services
benchmark, where participants rated SEN's VoIP technology second best overall,
beating out market leaders Cisco (NASDAQ:CSCO), Nortel Networks (NYSE:NT) and
privately-held Avaya. This is a big first step, but to succeed Gores Group, more
must be done; they need to present a clear vision.

Impacts:

Enterprises: If you are an SEN or Enterasys customer, push hard for product
integration road maps.

Vendors: All communications vendors should be very concerned. Start planning
your defense now!

Investors: Consolidation: first Brocade/Foundry and now SEN/Enterasys. Look
for more additional acquisition targets in storage, systems management and
virtualization.

http://www.nemertes.com/studies/nemertes_research_pilothouse_awards_2008_unified_communications_and_collaboration_0

http://www.latimes.com/technology/la-fi-gores30
2008jul30,0,225283.story?track=rss

Ted Ritter, Research Analyst