RealTime IT News

Nortel Networks Nabs Consulting Firm

With a nod toward strengthening its enterprise and ASP offerings, Nortel Networks Wednesday shelled out $64.5 million in cash for business strategy consulting firm Dimension Enterprises Inc.

DEI will help Nortel Networks (NT) design and engineer Net data centers to house e-business content. Nortel inked the deal to bolster its Managed Applications Services Initiative, which was announced last December. The Canada-based company will use DEI's technology to enable service providers to produce managed applications services.

DEI's strengths include expertise in business strategy consulting, Internet security, IP networking, operational support systems, enterprise application integration, and Internet data center design and implementation. The acquisition supports Nortel Networks' business strategy to lead the market in delivering complete solutions for the emerging ASP market.

Industry analyst group Dataquest said the emerging ASP market will grow to $23 billion by 2003.

"Nortel Networks is now positioned in the ASP market to serve as a prime technology and services solutions integrator, developing and implementing business and service plans, designing and building Internet Data Centers worldwide," said Richard Caruso, president, ASP market segment, Nortel Networks.

"By selecting and implementing application solutions and providing systems integration, we'll bring together core networks, management systems and data centers into a single high-performance solution. Dimension employees will help us implement our recently announced EINSTEINet ASP initiative in Germany."

The acquisition is the latest by Nortel Networks, which recently acquired Qtera Corp. and Promatory Communications to build its host of enterprise services.