Size really does matter. Forget all that sensitive, new age claptrap about product synergies and converged networks. The key new selling point for Bay, now that it has officially been acquired by Nortel, is going to be size.
"This absolutely raises the bar for other network companies out there," said Dave Shrigley, executive vice president for marketing, sales and service of the Bay line of business of Nortel.
With the acquisition of Bay now just completed, Nortel is already moving full steam ahead to capitalise on the combined power and mass of the two companies, partners and media were told here at the recent PartnerSphere event.
"This creates a new class of company based on the capabilities and overall completeness of our offerings," Shrigley said. "We can now provide a complete solution and be the customer's single point of contact."
Having suffered for so long because many customers would automatically buy Cisco on the merits of its size and product range, it is perhaps not surprising that Bay officials are taking every opportunity to hammer home its now considerable proportions.
"We don't have to look at what products we need to buy next. We're in a position where out product set is where we want it to be," Shrigley said.
Converged voice and data networks are also central to the Nortel strategy, but officials admitted the takeup and effect of this technology may not be seen for years.
Bay's local channel program would not be affected by the coming together of the two companies. Indeed, local managing director Steve Rust and Steve Woods, Bay's vice president for Asia-Pacific both identified the channel as being key to the company's future success.
Fine business units
The new Nortel will be headed by John Roth, CEO of Nortel, and David House, CEO of Bay. Roth will be CEO and House president.
There will be five business units, of which one is data networking. This will be a combination of the old Bay and Nortel's data networking business. The Carrier Packet Networks business has been established to service the carrier data segment.
Some data-network products and technologies from Bay, Aptis Communications and Avici Systems are also being integrated into this business unit.
For the carrier telephony segment, a realigned Carrier Networks business unit has been formed to deliver Nortel's DMS line of digital switching systems and other carrier telephony gear.
Nortel's wireless carrier and enterprise voice customer segments, have not changed.