& cplSiteName &

AlcaLu in Talks to Sell Security Unit to Thales

Sarah Thomas
5/22/2014
50%
50%

Alcatel-Lucent is currently in exclusive negotiations with Thales to sell off its network security business to the defense giant.

Alcatel-Lucent said Thursday that it was looking to form a strategic partnership with Thales SA (Paris: TCFP.PA) in which they would provide their combined cyber security and communications security services to their customers. Alcatel-Lucent (NYSE: ALU) would also continue to develop new "advanced security features for its portfolio of IP and ultra-broadband access products," the company said in a release on the proposed deal.

Cyber security was a cornerstone of Alcatel-Lucent's Shift Plan, unveiled last year, and the company believes that by divesting to Thales it will be able to offer customers an end-to-end network security platform that combines its network knowledge with Thales's defense services. (See Alcatel-Lucent Unveils Shift Plan and Alcatel-Lucent Builds Future Around IP.)

The deal isn't official yet, as the two companies work out the terms of the deal, but this isn't the first tie-up between the pair. Alcatel-Lucent previously had a 20.8% stake in Thales that it sold off in 2008 as part of its effort to divest non-core assets. It had transferred its space assets to Thales in 2007 after Alcatel and Lucent merged. (See AlcaLu to Sell Thales and AlcaLu Seals Asset Sale Deal.)

This is the third of several planned partnerships that AlcaLu is forming under the Shift Plan. In February it sold a small stake of its small-cell business to Qualcomm Inc. (Nasdaq: QCOM) and struck a deal with Intel Corp. (Nasdaq: INTC) focused on cloud. (See Alcatel-Lucent CEO: We Can Go It Alone and Joint Qualcomm & AlcaLu Small Cells Due Mid-Year.)

"Alcatel-Lucent needs a significant play in network security to be competitive with where Nokia is already at and where Ericsson is clearly going now," Heavy Reading security analyst Patrick Donegan tells us. "This looks like it, albeit the devil will be in the details when they are discussed in briefings in the coming days."

In the meantime, check out the Show Site for Light Reading's Mobile Network Security Summit, which took place in London yesterday, for more on the state of mobile network security today. (See Slide Show: Mobile Network Security Strategies London.)

— Sarah Reedy, Senior Editor, Light Reading

(13)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
5/31/2014 | 2:00:30 PM
Re: outsourcing security
@pdonegan67-I agree with the fact that ALU does not stand any chance of being competitive when it comes to the end to end network security space. I also think that the only way through which you can give ALU something that is more compelling is by selling out and allowing Thales to incorporate the ALU capabilities into their portfolio. I also agree with the fact that even though they may not own it, they will sell something that is much more compelling than what they normally offer.
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
5/27/2014 | 11:19:06 AM
Re: outsourcing security
Thanks Sarah!  The Arbor partnership seemed to be an integration of IDS/IPS between Arbor's probes and the ISA MDA, which is a card in ALu's routers that can do specialized functions.  Kindsight, I can't recall if they were owned by ALu or not, but that's probably whats on the table.
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
5/27/2014 | 3:03:40 AM
Re: outsourcing security
Specifically, do you know what this will do to the overall SROS strategy?  I was only familiar with ALu's partnership with Arbor and its pitch with Kindsight Security Labs.  Do you know how or what is being sold?  I'm going to assume what their plan to expand security visibility into their NMS (5620 SAM) is still on the table.  But their other partnerships might be what are being revamped
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/23/2014 | 1:50:08 PM
Re: outsourcing security
pdonegan67 - I see your point, but AlcaLu needs to do a better job articulating its message. 

As of now, it looks like a major mixed message. 
pdonegan67
50%
50%
pdonegan67,
User Rank: Light Sabre
5/23/2014 | 11:35:22 AM
Re: outsourcing security
Yes I imagine those T&Cs are under discussion as we speak.
pdonegan67
50%
50%
pdonegan67,
User Rank: Light Sabre
5/23/2014 | 2:29:09 AM
Re: outsourcing security
I think the rationale goes something like this. Solo, with what they have internally, ALU stands next to no chance of being competitive in the end to end network security space.

By selling out, allowing Thales to integrate the ALU capabilities into their portfolio, and then positioning the bigger end to end Thales-owned story, ALU will have something a lot more compelling. They won't own it (to your point) but what they will have to sell will be (a lot) more compelling than what they currently have.

That looks like the rationale but it's difficult to verify that since it turns out they're not hosting briefings as the negotations are only now getting underway.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/22/2014 | 7:25:57 PM
Re: outsourcing security
I was thinking the same thing, Sarah. How does selling their security division make AlcaLu more serious about security, either in appearance or actuality?
pdonegan67
50%
50%
pdonegan67,
User Rank: Light Sabre
5/22/2014 | 5:08:07 PM
Cisco and Juniper too
I should have added in my comments that ALU need a play in network security to keep up with Cisco and Juniper from the routing end of the business. And Huawei come to that. Not just Nokia and Ericsson in the end to end mobile network security space.
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.