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InformationWeek.com June 11, 2001
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IBM And Nortel Integrate Products For Service Providers
Joint offerings include IBM's storage solutions and Nortel's optical-networking gear

 

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  • IBM and Nortel Networks Corp. have teamed up to deliver complete packages of computing and networking equipment that can serve as the basis for hosted E-commerce services provided to business customers.

    IBM also has begun working with Redback Networks Inc. to combine IBM servers and software with Redback's subscriber-management platforms. Combined, the technologies will help providers of high-speed IP services roll out new and enhanced offerings faster and more cost-effectively.

    The partnership between IBM and Nortel, disclosed last week, will produce integrated offerings for use in service providers' data centers. The offerings will be called Network Solutions for eBusiness and will encompass servers, storage products, and management software from IBM and optical networking and content delivery products from Nortel. The packages will include IBM's eServer systems, TotalStorage products, WebSphere Application Server and Edge Server, and software from its Tivoli Systems network-management software unit. Nortel will contribute its optical-switching and transmission products for Ethernet and Internet services, including the Alteon 780 Web switch, the Nortel OPTera Packet Edge System, the OPTera Metro 3500 Multiservice Platform, the OPTera Metro 5200, and the Nortel Shasta Broadband Service Node 5000.

    IBM and Nortel say they'll integrate and test combinations of optical-networking gear from Nortel with servers, software, and storage products from IBM to guarantee that the combined products work together.

    However, the market for outsourced hosting services targeted by the IBM-Nortel alliance may be shrinking as customers rethink spending priorities. That's the case for LeaseExchange, a San Francisco marketplace that six months ago stopped hosting its site with an outside provider. "That was one of the ways we cut expenses," says Tom Williams, president and CEO of LeaseExchange. The E-marketplace for leased equipment and financing now hosts its own site, without losing functionality, and Williams says it expects to save tens of thousands of dollars a year.

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