Lucent spin-off raises questions for VARs

Lucent has caused confusion in the channel by announcing plans to spin off a new enterprise networking and communications company, apparently without any Wan products to offer.

Lucent has caused confusion in the channel by announcing plans to spin off a new enterprise networking and communications company, apparently without any Wan products to offer.

In an effort to appease shareholders, Lucent will concentrate solely on the fast-growing service provider market. According to information released by the company, it will retain ownership of the vendor's Wan access products, leaving the as-yet unnamed enterprise company with an incomplete product set.

Steve Driskel, managing director of Lucent VAR Quatrix, said: "If they're going to create an enterprise networking company they need an enterprise-wide product range." Driskel said he would meet Lucent later this month.

He expected the new company would have access to its current router technology.

A Lucent representative said the vendor would address these questions in the next few weeks. Matyas Elveld, networking analyst at IDC, said: "It is likely router development will be split, with enterprise products going with the new unit."

But Nathan Marke, marketing director at Prime Business Solutions, said: "Many people see a future where the real money is made from networks being delivered as a managed service by carriers, so perhaps Lucent is keeping its enterprise routers because they are part of that model."

Richard McGinn, chief executive at Lucent, said: "By spinning off our PBX, Systemax and Lan-based data business, we are sharpening Lucent's focus and creating another leading company to serve business customers."

Lucent will retain the Access Point and Pipeline product ranges, which appear under the category of Enterprise Systems on the vendor's own website, and the MAX Access range, even though it has models for corporate and SME customers. The spun-off company will sell the Definity PBXs, Octel messaging platforms, Systimax cabling and Cajun LAN infrastructure products.

Richard Moll, analyst at IDC, said: "It is strange that there's nothing in this announcement about enterprise routers. They probably didn't mention them to avoid drawing attention to decreasing sales in those lines."