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Alteon Websystems Gains Powerful Allies in Reaction to Cisco Acquisition

Strategic Insights

— 1 min read

In the face of a significant market shift following Cisco Systems' acquisition of Arrowpoint Communications for $6 billion, Alteon Websystems, a leading manufacturer of switches for Internet communications, has formed strategic alliances with Lucent Technologies and Akamai Technologies. This move comes as a response to Cisco's entry into Alteon's market area, with Alteon's CEO, Dominic P. Orr, stating that "all enemies of Cisco are now friends of ours." The partnership with Lucent is particularly notable, as it involves Lucent selling Alteon's gear under its own brand, leveraging Lucent's extensive sales force to increase market penetration. Meanwhile, Alteon has also partnered with Akamai to encourage customers to purchase Alteon equipment.

Key Takeaways:

  • Alteon Websystems has formed alliances with Lucent Technologies and Akamai Technologies in response to Cisco Systems' acquisition of Arrowpoint Communications.
  • The partnership with Lucent involves the sale of Alteon's gear under the Lucent brand, leveraging Lucent's extensive sales force to increase market penetration.
  • Alteon has partnered with Akamai to encourage customers to purchase Alteon equipment.
  • The partnerships are seen as a strategic move by Alteon to counter Cisco's market entry and increase its market share.
  • Alteon's CEO, Dominic P. Orr, has stated that the company will now work with any entity that is not a competitor to Cisco.
  • Lucent Technologies, a former equipment arm of AT&T, has been struggling to break into the data communications arena, despite having spent billions of dollars on research and development.

Statistics:

  • Cisco Systems acquired Arrowpoint Communications for approximately $6 billion.
  • Alteon Websystems is one of the main competitors of Cisco in the market for Internet communications hardware.
  • Lucent Technologies has spent billions of dollars on research and development to break into the data communications arena.
  • Akamai Technologies helps Web sites distribute information to users more quickly.

Sources:

  • The New York Times, "Lucent, Alteon in Partnership"
  • BusinessWeek, "Cisco-Nortel Battle Heats Up"
  • Alteon Websystems' press release
  • Lucent Technologies' press release
  • Akamai Technologies' press release

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