As part of its strategic partnership with IBM (NYSE: IBM), Nortel Networks (TSX: NT) last month officially launched its Software Communications System (SCS) 500 software-based unified communications for IBM’s Power Systems computing platforms.
Nortel executives say the integration of SCS 500 with IBM Power Systems will open up further business opportunities for Nortel and IBM resellers and solution providers. The Nortel SCS 500 is a UC solution geared towards small to medium-sized businesses (SMBs) with anywhere from 30 to 500 or more employees.
The software-based solution can be used on IBM Power Systems, which are single, energy efficient platforms that are capable of running integrated business applications and infrastructures. Richard Solosky, director of IBM alliance global marketing at Nortel, says the SCS 500 was initially introduced for use on the IBM System i platform. At the end of last month, Solosky says IBM made SCS 500 available to work with its entire Power Systems line of products.
Solosky explains that while Nortel has had a long working relationship with IBM, both companies really only solidified their alliance and collaboration agreements and initiatives in 2007.
These focus areas include: UC, communication enabled applications (CEA) and service- oriented architecture (SOA), SMBs, carrier solutions and the services space.
“The most partner-centric opportunity is probably in the SMB space,” Solosky said. “SCS 500 on IBM platforms is designed for our partner community to manage and sell.”
The SCS 500 is an intuitive solution that’s simple and straightforward to use says Chris Nantes, global enterprise portfolio marketing for Nortel. Because it’s scalable, built on open source and is an SIP-based solution, he says the SCS 500 is able to integrate well with other existing business applications. Some of the features included with SCS 500 are voice and video conferencing, unified messaging, call forwarding, automated attendant and more.
Nantes says partners need to become certified and take training and tests before they’re able to carry this solution. Once partners have this solution in their sales portfolio, he says they’ll be able to bring multiple value-adds on top of SCS 500 to their end-users.
“A partner can bring to the table a range of network infrastructure, IT infrastructure, IT applications and so forth,” he said. “There are more opportunities to develop new applications around SCS 500 because of the simplicity in its design and usability.”
Partners that sell this solution will also receive double digit margins, Nantes says, with the opportunity to increase revenue by adding services, maintenance, security and consulting on top. On the partner end, Nantes says more than 20 partners across North America have expressed interest in the solution; on par with Nortel’s partner participation goals for the year.
“We’re on track to reaching our goals in 2008,” Nantes said. “We were targeting close to about 20 partners by the end of this year and I think 2009 is the year when we’ll start to see more fruit.”
Solosky says Nortel’s SCS 500 solution on IBM Power Systems is a great way for partners of both companies to also find new customers, which otherwise may not have been found in other segments.
“If you’re an IBM partner, it gives you the ability to get into the UC and communications space because SCS 500 is a (software solution) that you can add into a new Power System. For Nortel partners, they’re moving into the IT world to become more of a complete solution provider for their customers.”
