Lucent restructuring focuses on large-scale business

NEWS Lucent Technologies has spun off its Enterprise Networks Group, renaming the business Avaya Communication. The split means the telecoms and networking equipment giant will concentrate on large businesses through an independent company, with 34,000 employees worldwide. It immediately announced a global alliance with CRM company, Siebel but is also seeking other partners. John Winchester, MD of Avaya Communication, said: "We've taken a bold step to separate and create an independent, listed company focused on a set of customers - the enterprise customers." He said the name will soon be recognised internationally, and denied that abandoning the Lucent brand was a mistake. Winchester added: "Three years ago I'd have said AT&T [which used to own what became Lucent] is a well-known name and Lucent isn't. It shows we now have a track record of success." However, rivals have been less generous. Commenting on the recent trend towards corporate re-alignment, Bobby Johnson, CEO Foundry Networks, told silicon.com: "You don't hear about the really successful networking companies making these sorts of moves." Steve Jenkins, VP Partner Strategy at Nortel, said: "We see the enterprise space as the next battlefield, but users look for consistency and a single company that understands what they want from end-to-end." While international branding of the company formerly known as Lucent's Enterprise Networks Group begins immediately, the transformation will be officially completed on 30 September, the end of Lucent's fiscal year. The move follows major restructuring already announced this year by 3Com and Cabletron, although there have been unofficial reports of changes for six to nine months.