Lucent & Movaz Seal Deal
As Light Reading told you yesterday, Lucent Technologies Inc. (NYSE: LU) announced this morning that it has struck an agreement with Movaz Networks Inc. to jointly develop and distribute metro WDM technology (see Lucent & Movaz in WDM Deal and Lucent Teams With Movaz, Wins 360).
According to the terms announced, Lucent and Movaz will jointly develop new metro DWDM products for Lucent's service provider customers, based on Movaz products, which include the RAYexpress. The new products will be designed to work with Lucent’s Metropolis products, which the company says now have more than 100 customers.
The deal is a huge win for Movaz, giving it a crack at Lucent's Tier 1 customer base. Lucent says the deal is important to them because it allows them to deliver product that customers are asking for.
"This isn't an OEM deal, this is new product development for our own customers," said a Lucent spokesperson.
Lucent officials say the new product being developed with Movaz will be integrated with Lucent's Navis OMS and certified by Telcordia.
Some analysts noted that it doesn't send such a good message for Lucent, because it means the big incumbent equipment provider needed to turn to a startup to help develop metro WDM technology.
"What shocks me here is the message that North American ILECs had requirements for advanced features that Movaz was able to fulfill while Lucent wasn't," says Scott Clavenna, chief analyst with Heavy Reading. "That smacks of a failure of listening to the customer, in my mind."
Some sources told Light Reading yesterday that the deal may be aimed at some big requests for proposal (RFPs) for DWDM technology, including those from SBC Communications Inc. (NYSE: SBC) and BellSouth Corp. (NYSE: BLS).
Movaz also recently announced a deployment at MCI (Nasdaq: WCOEQ, MCWEQ). And the startup has a reseller deal in place with Motorola Inc. (NYSE: MOT), which markets Movaz’s RAY product suite as the Motorola Multiservice Wavelength Transport.
— R. Scott Raynovich, US Editor, Light Reading