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adamsnow147
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adamsnow147,
User Rank: Light Beer
12/13/2018 | 9:09:16 AM
Re: It's not about the product
Entry points in customers have gotten a lot more challenging this line of you is really indeed correct
racing games 
Nally
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Nally,
User Rank: Light Beer
11/13/2018 | 11:23:28 PM
Intersting
Could have never thought about it from this perspective but it is possible now after I read all this. Just has some slight information from some assignment help online who made me understand it
brooks7
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brooks7,
User Rank: Light Sabre
7/31/2018 | 12:21:41 PM
Re: It's not about the product
 

Well, the challenge is that entry points in customers have gotten a lot more challenging.  In the old days, equipment types were regularly rebid.  Now, they are not.  It is generally a winner takes all (or almost all) in a 1 round event.  Telcos are saving their sparse lab resources for future looking products.

So for an acquisition like this, the ability to swap over 1 product for another within the same company no longer provides an advantage.  Sparing and maintenance still has to be done on the older products.

This implies that customer acquisition like this is a dicey thing.  The only way it works now is if there is likely to be an entry point in the other product categories soon.  By being an incumbent vendor, you get some benefit in a new RFP.  This benefit is small and some (if not all) the competitors are likely to be incumbents as well.

Scale, on the other hand, might be more useful.  Large Service Providers hate to be a huge percentage of a vendor's business (see what happened at Cyan once the bulk of their rollout at Windstream was completed).  By being bigger, it provides a bit more comfort that they will not put a vendor out of business by finishing a project.

seven

 
sonal99
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sonal99,
User Rank: Light Beer
7/31/2018 | 6:21:35 AM
hello
hii
Business12707
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Business12707,
User Rank: Light Beer
7/31/2018 | 4:03:41 AM
It's not about the product
The big unspoken question in all their talk of the metro vs long-haul portfolio in this acquistion is "What about Transmode?". The whole point of that acquisition (which at $350M was almost as big as this one) was to give Infinera a metro portfolio. The answer is that old sales maxim  "It's not about the product."

These portfolio integration activities are always harder than those selling them to invetsors make them sound - some customers lose products they love and are forced into tough decisions. This acquisition is less about products and more about customer acquisition and scale. Infinera see the opportunity to acquire new customers without competing for them in the open market. They know that they will lose some of them but will have made a judgement about how much they will keep and what that is worth. For Coriant's investors this is an exit strategy. The article states that they have put in $1B and are selling for $450M. Whilst it may have some great products, it is a company on the slide burdened by it's legacy and Infinera will be able to trim costs much more effectively in the combined organisation that Coriant could on its own.
Duh!
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Duh!,
User Rank: Blogger
7/25/2018 | 11:27:28 AM
Re: One to watch
They'll have to manage all of that. Who stays/who goes and when, product roadmap, EOL timing, customer incentives, communications plan, sales training, sales comp plan, etc., etc.  It's do-able, but easier to mess up than pull off.

The Coriant account teams are going to have to tap-dance.
brooks7
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brooks7,
User Rank: Light Sabre
7/25/2018 | 2:17:54 AM
Re: One to watch
Of course, that assumes that customers have any interest in switching platforms...especially if the one that they have installed gets discontinued or roadmap ended.  All that does is open the door for a new round of competition.  One that the company that discontinues the product starts at a disadvantage.

seven

 
James_B_Crawshaw
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James_B_Crawshaw,
User Rank: Blogger
7/24/2018 | 6:04:35 PM
Re: One to watch
It must mean https://soundcloud.com/dropthegroove

 
Sterling Perrin
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Sterling Perrin,
User Rank: Light Sabre
7/24/2018 | 3:26:32 PM
Re: One to watch
Duh! Agreed. They won't talk product at all right now, but it's hard to imagine how they would 1. keep two separate DCI lines going or 2. drop the PIC-based CX in favor of Groove. So that leaves just one conclusion to draw. 

Sterling
Duh!
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Duh!,
User Rank: Blogger
7/24/2018 | 1:43:53 PM
Re: One to watch
Note that there is significant product overlap -- for example, Infinera Cloud Xpress2 and Coriant Groove 30. It's not just individuals scrambling to keep their jobs.  It's whole product teams. The logic behind the acquisition depends largely on moving everything to Infinera's Infinite Capacity Engine (CX2 is built around ICE4).  If I were on the Goove 30 team (except for sustaining engineering), I'd be updating my resume about now.
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