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July 9, 2003
Survey Shows Growing Enterprise Demand for Convergence, Wireless LANs, Security
Among Nortel Networks Users, 91 Percent to Have Converged Voice, Data Networks by 2008
DALLAS – Thirty percent of Nortel Networks* [NYSE/TSX: NT] enterprise customers have converged their voice and data networks and another 61 percent plan to do so in the next five years, according to a survey conducted by independent technology market researcher Mindwave Research.
The survey included approximately 100 corporate, networking and IT professionals who attended Global Connect 2003, the recent annual conference of the International Nortel Networks Users Association (INNUA). Participants identified ease of integrated applications deployment, ability to deploy enhanced voice functions, reduced wiring costs, and reduced cost of moves, adds and changes as major drivers for converging their networks. In addition, 60 percent viewed wireless local area networks (LANs) as “critical” to improving employee productivity. Network security was also highlighted as a concern, with 71 percent saying that their companies are investing in advanced security solutions. “Nortel Networks customers have always been at the forefront of technology adoption,” said Greg Merritt, vice president, marketing, Enterprise Networks, Nortel Networks. “We are committed to helping our customers achieve their network vision while providing a cost-effective and flexible roadmap to convergence.” “Our ‘One network. A world of choice.’ enterprise vision is part and parcel to this roadmap,” Merritt said. "This vision allows for choice while maximizing customer engagement. That’s key to improving customer relationships for us, our customers, and their customers.” The survey found that 14 percent of the companies polled are deploying wireless LAN solutions companywide. Another 20 percent are doing so in selected departments. Eighty-six percent believe that wireless LAN solutions will increase employee mobility. Fifteen percent of participants identified network and data security as their top IT concern. Other areas of concern included hacker and virus protection, wireless security, and disaster recovery. Eighty-five percent noted that security is "critical" to their businesses. Seventy-one percent said that they use perimeter defense – firewalls, intrusion detection systems (IDS), application proxies, and Virtual Private Networks (VPNs) – as their approach to network security. The survey also indicated that 60 percent of participants still consider traditional enterprise voice products (PBX/key systems, circuit switching) to be “crucial.” Sixty-eight percent said they were involved in evaluating or purchasing enterprise voice over IP (Internet Protocol) solutions - IP telephony, for example. Survey participants answered questions about: awareness of and plans for converging networks; wireless LANs; security and use of security solutions; risks and rewards; technical requirements; and demographics. The survey was designed and administered via the Web by Mindwave Research, an independent full-service market research and consulting firm that focuses exclusively on technology products and markets. For more information on Mindwave Research, go to www.mindwaveresearch.com** or call (512)469-9058. INNUA, formerly INNMUG (International Nortel Networks Meridian* Users Group), recently changed its name to represent its expanded membership, which now includes Nortel Networks data users. INNUA membership spans 17 countries with more than 72 chapters in 10 regions. Approximately 3,000 members attended Global Connect 2003. INNUA is headquartered in Dallas. Visit www.innua.org** for more information. ‘One network. A world of choice.’, Nortel Networks vision for the enterprise, is about raising the bar with a new level of customer and employee engagement, no matter where and how the network is accessed. It also offers enterprises the power of choice in deployment options through industry-leading solutions in IP Telephony, applications, data and optical networking. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel Networks, the Nortel Networks logo, the Globemark and Meridian are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Dana Hughens
Nortel Networks
(615) 432-4636
dhughens@nortel.com
Ben Atherton
Nortel Networks
+44 1628 43 8526
bena@nortel.com
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