Nortel moves to allay services worries

Nortel moves to allay services worries

Nortel Networks has moved to allay potential worries of SME channel partners that its preliminary discussions with leading services providers will divert business from the channel.

Diane Guthmann, Nortel Networks' business partners program manager, told ARN here last week Asia Pacific resellers will not find themselves competing with high-end services providers this year once the company completes partnership discussions with leading services providers.

Tony Yuen, Nortel Networks' senior VP, new market developments, said the company is looking to forge new partnerships with companies such as CSC, EDS and IBM GSA to bolster its services arm.

"[Our services business] is not sufficient, we would need to partner with the big boys," he said.

He explained the company's small services outfit is needed to integrate a range of IP-based voice and data networking solutions with end users.

However, Guthmann rejected ARN suggestions a new services partnership will affect existing regional channel partners.

"The accounts and business they go after are so unique I think the likelihood one of our typical regional resellers will be affected is minimal," she said. "I don't necessarily see there is going to be a conflict."

Guthmann explained regional resellers will continue to focus primarily on the SME and enterprise markets over the next 12 months, reporting large services contracts are not typically part of the resellers' core business.

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