Optical/IP Networks

Prabhu Joins Morgenthaler

DALLAS -- Krish Prabhu, Alcatel SA's (NYSE: ALA; Paris: CGEP:PA) former chief operating officer, has joined Morgenthaler Ventures as a venture partner, Morgenthaler said Monday (see Ex-Alcatel Honcho Joins VC Firm). Prabhu will remain in Dallas to help the Menlo Park, California-based venture capital and buyout firm invest in early-stage telecom companies here.

Prabhu was Alcatel's COO from October 1999 to August 2001. He began working for Alcatel back in 1991 when it bought Rockwell International’s network transmission division. Prior to that he worked at AT&T Corporation’s Bell Laboratories as a senior member of the technical staff.

He currently sits on the boards of Alcatel, Cenix Inc., and Glow Networks. He also served on the SmartPipes Inc. board earlier this year.

Prabhu is a bit of a local legend here in the Texas Telecom Corridor. He was equally feared and respected during his tenure at Alcatel. He held senior management positions during Alcatel's two largest multibillion-dollar acquisitions -- its 1998 purchase of DSC Communications and its purchase of Newbridge Networks in early 2000.

He was once accused in court documents filed by Cisco Systems Inc. (Nasdaq: CSCO) of vowing to spend $50 million to put a stop to Monterey Networks, the wavelength router company, then led by former Alcatel executive Joe Bass, that Cisco bought in 1999.

Of course, Prabhu didn't have to lift a finger to stop Monterey. Cisco shut down the project all by itself earlier this year.

Prabhu will initially be working closely with Yotta Networks Inc. and Westwave Communications, according to a Morgenthaler spokesman.

— Phil Harvey, Senior Editor, Light Reading
skeptic 12/4/2012 | 7:35:30 PM
re: Prabhu Joins Morgenthaler
Who "respected" this man? His tenure at alcatel
mostly consisted of bad decisions and endless
decline of once profitable businesses. He
bears a large degree of responsibility for
alcatel's failure in north america. Specifically
for bringing in the corrosive culture of DSC
into alcatel and for blowing billions of dollars
on bad companies.

This is a man who oversaw a horrible series
of acquisitions: DSC, Xlyan, Assured access,
Packet Enginers. Each one, in its own way a
disaster. He capped it off with the purchase
of newbridge for way too much money and the
destruction of ironbridge for the sake of a few
million dollars he would not spend.

His judgement was such that he trusted Steve Kim
at Xylan so much that he ended up being fooled
into buying assured access which anyone who
actually looked at the company could have seen
that it had no value. He allowed Xylan employees
to create chaos at packet engines, almost
personally assuring the departure of key
employees and the failure of the effort.

And why is he going to a VC firm? What happened
to all those rumors about him about to be offered
CEO at Lucent or Nortel? (or did the rumors
come from him).

ARAVI 12/4/2012 | 7:35:28 PM
re: Prabhu Joins Morgenthaler I hear that Prabhu is the defacto "CEO" of Yotta and that he did a management shakeup in bringing a bunch of ex-Latus folks on board to get rid of Yotta's own people. Wonder what else is on the deck...
nevermind 12/4/2012 | 7:35:27 PM
re: Prabhu Joins Morgenthaler I have to agree with skeptic on this one. AlcatelGÇÖs success was due to Dave Orr, and it occurred despite Prabhu, not because of him. In fact, AlcatelGÇÖs happiest years occured when Prabhu was off in Europe playing politics. The DSC merger was a miserable failure for everyone involved, except perhaps people in need of cheap real-estate.
skeptic 12/4/2012 | 7:35:27 PM
re: Prabhu Joins Morgenthaler I hear that Prabhu is the defacto "CEO" of Yotta and that he did a management shakeup in bringing a bunch of ex-Latus folks on board to get rid of Yotta's own people. Wonder what else is on the deck...
He always has been the defacto CEO of Yotta
Networks. Its just out in the open now.
This is a company that had all sorts
of agreements with alcatel. I think at one time
they could openly recruit alcatel employees.

As far as Yotta goes, they are up there with
gotham in terms of the dead pool (doomed).

gardner 12/4/2012 | 7:35:19 PM
re: Prabhu Joins Morgenthaler That's interesting. What happened to my posts? Evidently someone removed them. Why? Does LR itself have an ax to grind against Krish Prabhu?
HarveyMudd 12/4/2012 | 7:27:56 PM
re: Prabhu Joins Morgenthaler There is no doubt in my mind that Prabhu broght down the company and it may take another 5-10 years before Alcatel-YSA recovers from various losses and lost opportunities due to the buying decisions made by Prabhu.

Whosoever appointed him to the COO position should be fired from Alcatel. He is a person with very poor skill sets.

His decition to acquire Assured Access was a total failure.

I do not undersyand as to why Alcatel was sdleeping when the companies that he bought were not bringing revenues. May be the entire Alcatel Board should resign.

As far as Yotta Networks it has no products and because of the Association of Yotta with Prabhu, no company would ever buy its products or acquire the company. How long Prabhu can fool people.

Morgenthaler, the VC company, whwere Prabhuu is working will go down the drain very quickly.

It is very difficult to understand what is going with the Telecom Equipment companies -- one mistake after the other.

It is hard to understand what is driving the engine of incompetency at Alcatel.
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