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Lucent & Movaz Seal Deal

Light Reading
News Analysis
Light Reading
2/24/2004

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

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morye
morye
12/5/2012 | 2:22:47 AM
re: Lucent & Movaz Seal Deal
Again, you show your bias against Lucent. With this deal Lucent has patched up the holes in WDM its porfolio. Why not mention a word about Nortel, which is the big loser here. It is clear that Nortel that has been the clear leader in WDM has lost ground to Movaz when they lost the MCI deal. Your friend Phil was a little more kind, and made a passing note about lucent's competition though poignantly negative and incredulous of the reality about Nortel's loss of leadership.

(P.S. Congratulations to fellow perians: Fariborz and Bijan).
particle_man
particle_man
12/5/2012 | 2:22:46 AM
re: Lucent & Movaz Seal Deal
Considering they let go around a zillion engineers, they don't have the people to build lots of new gear. This is a very creative way to enhance their portfolio at a very low cost. The large OEMs still seem to own the carrier customer, so this is a very smart move by Movaz as well.

Of course you still have to split the margin across 2 companies.....
googol_byte
googol_byte
12/5/2012 | 2:22:45 AM
re: Lucent & Movaz Seal Deal
Yes I do.
eli
eli
12/5/2012 | 2:22:45 AM
re: Lucent & Movaz Seal Deal
Any one know any engineers or marketing people at any of these companys?

Thanks
Eli
uk_ian
uk_ian
12/5/2012 | 2:22:42 AM
re: Lucent & Movaz Seal Deal
I haven't read Light reading for years, because I got fed up with it's bizarre reporting & editorial viewpoints. I chance my arm and what do I find.. This guy is taking a pop at Lucent for actually taking steps to quickly plug a portfolio gap in a cost effective way that avoids years of R&D expense.
One day, Lucent is a cumbersome, beaurocratic monster who is having it's bottom spanked by every nimble start-up innovation machine on the block. The next, Lucent is declaring that it's a miserable failure to the world because it's actually working with a partner....
OK. 5 years ago, Lu would have just bought Movaz up... but from what I can remember incorporating those acquisitions was never such a smart move... Chromatis springs to mind... So now, Lucent has a product ready to launch, R&D costs are pretty much nil, Movaz is hungry to win business and make the partnership work... (Which was never true of those pre-IPO companies, where the engineers were more worried about the size of the yacht they were going to buy than actually getting the slideware to work!)
You "Light Reading" folk need to smarten up your act.
NightTrain
NightTrain
12/5/2012 | 2:22:40 AM
re: Lucent & Movaz Seal Deal
You call the LR folks lazy. You should all take a a close look at yourselves. Do some research...

"Lucent fills a product hole with this agreement."

Um...ever heard of a company called Internet Photonics, which was spun out of Lucent and recently acquired by Ciena.

So let me get this straight. Lucent cuts a deal with Movaz to get technology it already developed to fill a product hole that could have been filled but doesn't have anymore. Brilliant.
hrdhtr
hrdhtr
12/5/2012 | 2:22:40 AM
re: Lucent & Movaz Seal Deal
NT, Please enlighten us as to this "spinoff".
I believe that you are just a little off the mark here.
hrdhtr
hrdhtr
12/5/2012 | 2:22:40 AM
re: Lucent & Movaz Seal Deal
I agree, these guys (LR)are obsessive axe grinders. As usual, the article has no technical merit except what was cut and pasted from the press release. Do some real work guys!!!
NightTrain
NightTrain
12/5/2012 | 2:22:39 AM
re: Lucent & Movaz Seal Deal
So I have to go on their website and do your research for you? I don't think so. Here's a little help.

www.internetphotonics.com
hrdhtr
hrdhtr
12/5/2012 | 2:22:37 AM
re: Lucent & Movaz Seal Deal
Now you are biting... Good cut and paste!!
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