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May 7, 2002
Nortel Networks Announces New Class of Products for Secure IP Services Delivery
Expects Next Phase in Internet Evolution to Substantially Reduce Networking Costs
SANTA CLARA, Calif. – Nortel Networks* [NYSE/TSE: NT] today announced new products and technology designed to enable a fundamental shift in networking strategy for enterprises worldwide.
Nortel Networks will merge dynamic routing and Virtual Private Networking (VPN) into one device for delivery of secure IP (Internet Protocol) services, positioning enterprises to substantially drive down total network ownership costs – by as much as 70 percent based on Nortel Networks benchmarks.
Nortel Networks innovative Secure Routing Technology architecture and new series of Contivity* Secure IP Services Gateways will position enterprises to effectively eliminate the trade-off between security and performance.
This is the latest in a series of announcements demonstrating compelling technology innovation from Nortel Networks in the enterprise market. Nortel Networks also recently announced a new family of BayStack* Ethernet Switches for enterprises, and Succession* Communications Server for Enterprise Multimedia Xchange (CSE MX).
"Today’s router-based networks do not satisfy enterprise requirements for simplicity, security and scalability," said Oscar Rodriguez, president, Intelligent Internet, Nortel Networks. "Network dynamics are changing, and we have found the means to enable delivery of critical IP services in ways that have not been accomplished before. This announcement signals the next phase of the Internet evolution, where businesses will be able to use the Internet cost-effectively as their corporate networks with all the security, reliability and manageability of private, leased lines."
"Nortel Networks Secure Routing Technology addresses an important enterprise requirement for highly secure edge routing in a scalable, cost-effective offering," said Zeus Kerravala, vice president, Enterprise Infrastructure, Yankee Group. "As use of encrypted VPNs escalates to match demand for data security, Contivity is positioned to deliver a rich and secure service suite to customers, while reducing total cost of ownership."
"Secure Routing Technology on Contivity from Nortel Networks represents the right approach to address our enterprise-wide needs as we continue to converge network traffic onto IP," said Lawrence W. Loh, chief information officer, Analog Devices. "We use VPNs as a secure, cost-effective technology, and welcome the prospect of being able to route over VPNs and provision other IP services across the entire network from a single, extremely scalable platform."
Nortel Networks Contivity Secure IP Services Gateways feature a new architectural model, called Secure Routing Technology, which will provide the necessary scalability to drive more widespread delivery of secure IP services over the Internet, leveraging technology innovations such as:
- consolidation of routing, VPNs, firewalls, bandwidth management, Quality of Service (QoS) and other IP services on a single platform, dramatically improving cost-effectiveness.
- the ability to 'mix-and-match' services on a single platform, allowing customers to bring up only the services they need, when they need them.
- pre-installed IP services, activated remotely via software license keys, eliminating 'forklift' upgrades and costly, time-consuming service calls.
- support for dynamic routing protocols (Routing Information Protocol, Open Shortest Path First, Virtual Router Redundancy Protocol), effectively eliminating the performance/security trade-off by enabling IP services deployment over encrypted VPN 'tunnels.'
- total integration of policy, access, routing and management into a single, consistent security structure, providing scalability and high performance, even when running multiple IP services in the same device.
"This innovative solution will position enterprises to radically reduce total cost of network ownership over the typical router deployment model of today, where purpose-built devices take up valuable real estate, deployment and maintenance require unique, time-consuming configurations, and platforms are not scalable for growing businesses," Rodriguez said.
Nortel Networks announced five new Contivity Secure IP Services Gateways, each designed with security at the forefront.
Contivity 1010, 1050 and 1100 will provide secure, cost-effective 'all-in-one' solutions for small branch offices, home offices and small businesses with requirements for site-to-site or remote access VPN applications, or for simple Internet connectivity.
Targeted at mid-to-large branch offices, Contivity 1700 and 2700 will provide all the functionality and twice the performance of the award-winning Contivity 1600 and 2600 products at the same price.
Nortel Networks Secure Routing Technology will position enterprises upgrading their networks to drive down installation costs by eliminating the need to: integrate VPN into existing routers; upgrade software to process traffic with secure protocols; add encryption cards to each device; and support and install each of these changes. The related reduction of network downtime, 'truck-roll' upgrades, training, real estate requirements and power consumption will enable enterprises to reduce operational costs as well.
Likewise, Nortel Networks estimates that enterprises building new networks will be positioned to save as much as 50 percent in deployment costs over other solutions by virtue of consolidating all IP services into a single platform.
"In order to continue the momentum toward use of the Internet for enterprise applications, it is critical to move toward a more secure, scalable and business-grade infrastructure," said Mark Fabbi, vice president and research director, Gartner. "We expect a new wave of products to emerge to provide customers with a flexible, secure platform and a lower cost of ownership."
Nortel Networks was a leader in the global, independent VPN market for 2001, according to Synergy Research Group. Contivity has received a number of industry accolades, including most recently an "Editor’s Choice" award from Network Computing, and an "Information Security Excellence" award from Information Security.
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 Metro and Enterprise Networks, Wireless Networks and Optical Long Haul 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 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 increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance 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, Contivity, BayStack and Succession are trademarks of Nortel Networks.
Contact for Press and Analysts:
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Nortel Networks
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Nortel Networks
408 495 9608
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Nortel Networks
613 768 1208
afuller@nortelnetworks.com
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