Alcatel-Lucent wants to get webby with you
A serious corporate realignment re-focusing the business on three markets (and four investment areas) puts a Web 2.0 glamour -- it's still glamorous, Web 2.0, right? no? how about Web 3.0? -- on telco manufacturer Alcatel-Lucent.
There are layoffs on tap as well for the French firm. Around 1,000 managers and 5,000 contractors will find their jobs eliminated over the course of 2009 and 2010.
It's all part of a plan -- CEO Ben Verwaayen's big plan to finally bring the two-year-old firm into the black. Verwaayen, who took on the top spot a few months back, took some time to ponder where the company, which hasn't been profitable since the 2006 merger that created it, needs to go.
The company now moves to focus on three markets: service providers, enterprises, and a selection of verticals. Wherever they're headed, they're taking along their Buzzword Bingo cards. Excerpted from the press release's discussion of new strategy:
Alcatel-Lucent's plan is to combine the trusted capabilities of the network environment with the creative communications services of the web (Web 2.0, Web 3.0 and beyond). This transformation will allow billions of customers to use millions of websites from any device guaranteeing security, quality, privacy and billing integrity. The overall service experience for end-users -- consumers and businesses -- will be improved and greater value will be created for every player in the industry.
Sounds fancy -- Web 3.0, anyone,? -- but a number of observers are mystified as to what it might exactly mean. The company's investment shifts are a bit clearer. They'll continue their IP, optics, broadband, IMS core, and EV-DO efforts, while increasing investments in LTE, W-CDMA, enhanced packet core, and open-application enabling technologies.
Alcatel-Lucent will also start consolidating offerings on "mature portfolios" such as CDMA 1x, GSM, ATM, ADSL, DLC and various legacy apps. WiMAX, CPE, non-IMS based NGN portfolio applications, and a few other technologies get the fuzzy end of the lollipop, with reduced spending and efforts to "partner" on those offerings, by which one suspects the company means "unload at our earliest convenience." The company did not say as much, however, on this week's conference call.
R&D faces those procedures a division faces to become "more agile." The Carrier Product Group shrinks from six divisions to four, with the W-CDMA and NGN efforts concluding and global R&D centers in consolidation mode.
Alcatel-Lucent rose fairly consistently over the course of Friday's trading, which opened at $2.12, but closed at $2.29, down $0.12 from Thursday's close.