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IBM Software Provides Foundation for Nortel’s New Management Solutions for Service Providers
March 21, 2007 TORONTO – IBM [NYSE: IBM] and Nortel* [NYSE/TSX: NT] today announced a new way for service providers to control network operations, reduce costs and deliver new high-bandwidth services, such as video and streaming media, across their networks. To help service providers achieve this competitive edge, IBM software is being embedded as an essential building block for a new network management platform from Nortel. Nortel is embedding IBM’s Tivoli Netcool software as the foundation of its new Common Management Platform, designed to deliver greater network control capabilities with a common feature set across the entire family of Nortel’s service provider solutions. This new platform provides critical capabilities essential for service provider network operations, including a hardened security framework, a common set of network management applications, and a common service assurance suite. Nortel’s Common Management Platform, built upon the IBM Tivoli Netcool framework, will provide consistency and a standard operational model across Nortel’s Carrier Networks and Metro Ethernet Networks portfolios. The first Nortel service provider solution to launch with the IBM-powered enhanced management platform is Nortel’s Metro Ethernet Manager, the network and service management system created for Nortel’s Metro Ethernet solution based on the innovative Provider Backbone Transport (PBT) technology. The newly enhanced Metro Ethernet Manager, in combination with PBT technology, delivers a powerful solution that will allow providers to effectively operate their networks while meeting strict Service Level Agreements and maximizing service availability. “We are enabling significant operational savings for our service provider customers as they migrate to Ethernet while also bringing the best of the circuit-based operational model they are accustomed to with Nortel management solutions,” said Scott McFeely, Metro Ethernet Networks business leader for Nortel. “The selection of Netcool as the foundation of the Common Management Platform ensures access to leading fault and event management as well as service assurance capabilities that are essential to meeting Service Level Agreements our customers are demanding today.” Independent analyst firm OSS Observer recently ranked IBM as the worldwide leader for Fault and Event Management for operations support systems which includes fixed, mobile and broadband segments(1). Nortel’s Metro Ethernet Manager delivers the essential fault, configuration, and performance management capabilities required by service provider network operations teams yet simplifies the job of managing a large-scale carrier grade Ethernet network. This helps service providers capitalize on the performance, bandwidth, and cost benefits Ethernet affords. “Nortel’s enhanced management platform will bring a completely new approach to delivering network management solutions for service providers,” said Craig Farrell, CTO of Tivoli Netcool for IBM. “We are excited to see customers embrace Nortel’s first carrier solution of many that will include the new IBM-powered management platform.” Metro Ethernet Manager, with integrated Netcool base security and application framework, will be demonstrated next week in Orlando at the IBM booth at the Nortel Inform Users Group Conference. Nortel’s Metro Ethernet Manager is generally available now. Additional Nortel Service Providers solutions with the new Common Management Platform are expected to roll out throughout 2007.
About IBM Tivoli Netcool Software
For more information about Tivoli Netcool software, visit http://www-306.ibm.com/software/tivoli/solutions/service-provider/ .**
About IBM
About Nortel
Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K/A, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices . (1) OSS Observer, “Service Assurance Market Overview” by Patrick Kelly, February 2007. Contacts for Press and Analysts: Pat Cooper Libra White | ||||
