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Telecommunications Nortel cuts out blade servers
Telecommunications Nortel cuts out blade servers | Nortel cuts out blade servers |
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| by Stuart Corner | |
| Thursday, 16 February 2006 | |
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Nortel has contributed intellectual property and customer contracts and has received a minority interest in the new companyin addition to other, unspecified consideration. Blade Network Technologies assumes management of Nortel's BSSBU operations, including design, manufacturing and support of existing BSSBU blade server switches. Some of its products will carry the Nortel brand or the "Solutions by Nortel" brand. Nortel president and CEO, Mike Zafirovski, said: "...this transaction is consistent with Nortel's business transformation strategy which includes focusing only on those technologies which are strategic to our core business." He added: "As a business in its own right, Blade Network Technologies will be well positioned to take advantage of a growing market." According to IDC, blade server shipments will grow at a compound annual growth rate (CAGR) of 57 percent through 2009 to reach $US10 billion, making blade servers the fastest growing segment within the server industry. Nortel claims that the new company will be one of the largest suppliers of blade server switches with an installed base of more than 52,000 switches (representing approximately 1.1 million Gigabit Ethernet ports) around the world. "The systems in which Nortel's blade server switches are installed are used by Fortune 500 companies across 25 different industry segments."
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