AlcaLu: The Network Integrator

AlcaLu reveals strategy for its services business and looks to non-carrier customers for growth

Michelle Donegan, Contributing Editor, Light Reading

November 28, 2007

3 Min Read
AlcaLu: The Network Integrator

Alcatel-Lucent (NYSE: ALU), Light Reading's Top Turkey, jazzed up its services business group today with a new marketing logo and five key business areas that it will focus on for future growth.

AlcaLu's services business group is key to CEO Pat Russo's new restructuring plan and growth strategy, which she announced on Halloween with the company's third-quarter results. Russo said there would be a greater focus on "high value added services and applications for the carrier markets" and "solutions for the enterprise markets and industry and public sector." (See AlcaLu Cuts 4,000 More Jobs, AlcaLu Revamps Its Carrier Business, and AlcaLu Reports Q3.)

The services business group is led by John Meyer, who is not a musician, but is one of the seven-member top executive team that reports to Russo. The group reported revenues of €2.1 billion (US$3.1 billion) for the first three quarters of 2007, which is an increase of 3 percent compared with the same period in 2006. Meyer said he expected full-year revenues for his group to be somewhere in the range of €4 billion ($6 billion), but about €1 billion ($1.5 billion) of that will be recorded in the products business group as services related to product deployments. (See Russo Shakes Up AlcaLu's Top Team.)

To mark its growing importance to AlcaLu's overall business, the services group has created a new marketing logo:

"We define ourselves as the network integrator," says Meyer. "[Networks] are going to be complex as hell… and I'm going to be integrating all of that."

When Light Reading asked whether the network integrator will become the logo and marketing line for all of Alcatel-Lucent as a company in the future, Meyer told us, "If we're successful, maybe… if we really do a good job."

His answer could be interpreted as an indication of Alcatel-Lucent's longer-term future direction. But for now, the network integrator role is confined to Meyer's services group.

"Internally, I want our people to start thinking this way… and we want to create an identity for the ourselves in the market," he says.

The services group will focus on the following five service areas: IP transformation; multi-vendor maintenance; applications integration; managed services and network operations; and industry and public sector.

AlcaLu recently rebranded the industry and public sector area, which is led by Michael Fabian, president of industry and public sector. This sector basically comprises non-carrier customers and focuses on the transport, energy, and government sectors.

"It's a great hedge against the carrier business," says Fabian.

"This business runs on references. They're like a club," he says of the public sector. "If you're in with the Paris Metro, you can go to London Underground… The doors are completely open to you."

Recent customer wins in this sector include a deal to deploy an observation tower system in Poland to assist the Polish Border Guard with monitoring its Eastern border. Another example is a €34 million ($50 million) contract to design and deploy a communication, security, and IT system for the King Shaka International airport just north of Durban, South Africa.

— Michelle Donegan, European Editor, Light Reading

About the Author(s)

Michelle Donegan

Contributing Editor, Light Reading

Michelle Donegan is an independent technology writer who has covered the communications industry on both sides of the Pond for the past twenty years.

Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications, including Communications Week International, Total Telecom, Light Reading, Telecom Titans and more.

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