Nortel sells off its direct business to 3D Networks

Nortel sells off its direct business to 3D Networks

Nortel Networks has sold-off its direct sales division to Singapore-based integrator 3D Networks for an undisclosed sum.

Under the terms of the agreement signed yesterday [Thursday] 3D Networks, a wholly-owned subsidiary of Planet One, will acquire the entire business operations and assets of Nortel's retail Enterprise Solutions business in AustraliaAccording to Ong Wei Ping, company director of 3D Networks, the acquisition provides the Asian integrator with a good entry point into the Australian market. Currently 3D Networks has offices in nine countries across the region.

3D Networks is an exclusive Nortel-only shop when it comes to network infrastructure claims Ping, and is presently Nortel's only pan-Asian business partner. Ping says while the newly acquired business will continue to provide Nortel Enterprise communication products and accompanying services in Australia, its business will be expanded to provide systems integration services for network infrastructure and e-business roll outs.

The move ends an anomaly for the network equipment manufacturer, with Australia being one of the only countries where Nortel sold product/solutions direct to enterprise customers claims Elizabeth Lovett, marketing communications manager at Nortel Networks Australia.

Nortel began its direct selling enterprise solutions business after the vendor purchased local integrator Exicom Communications Systems in 1996. But Lovett claims the division - known as Nortel Communication Systems - has been the cause of ongoing problems for the vendor trying to manage a hybrid direct/indirect strategy.

"This [sale] allows us to focus back on the channel, supporting our partners and growing the business," Lovett told ARN.

Barry Southern, president for Enterprise Solutions, Nortel Networks Asia Pacific adds the sale will also let the vendor concentrate on its core competency of bringing new technology to market.

All of Nortel's Communication Systems staff (about 115 people) will be offered positions at 3D Networks.

Customers of Nortel's enterprise division included Ansett, the Australian Tax Office, Commonwealth Bank and Cable & Wireless Optus.

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