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June 4, 2002
Nortel Networks Hybrid IP VPN Offering Combines Network, CPE-Based Solutions
Enables Service Providers to Deploy Tailored IP Services Easily, Cost-Effectively
SANTA CLARA, Calif. – Nortel Networks* [NYSE/TSE: NT] announced a collection of technology innovations designed to make delivery of true hybrid IP (Internet Protocol) VPN (Virtual Private Network) solutions substantially easier and more cost-effective for service providers, enabling their enterprise customers to choose a tailored mix of network- or customer premise-based VPN services that meet specific, per-site requirements.
“Enterprises want to optimize their IP VPN connections on a per-site basis,” said Frank Plastina, president, Metro and Enterprise Networks, Nortel Networks. “This hybrid IP VPN approach will allow them to deploy customer premise-based equipment where they prefer in-house control or have higher security requirements, while leveraging the cost-effectiveness of network-based services for other sites. In addition to providing greater security, this initiative is designed to allow carriers to offer their enterprise customers maximum flexibility for their networking needs.” The innovations announced today for Nortel Networks Shasta* 5000 Broadband Services Node (BSN) are designed to enable service providers to address the diverse set of enterprise service requirements while driving lower capital and operational expenditures. These innovations will include:- a consistent Contivity IPSec client across both Shasta 5000 BSN and Contivity* Secure IP Services Gateways portfolio, enabling true, hybrid IP VPNs with service consistency across both customer premise- and network-based VPNs, and simplifying the end user experience by minimizing the potential for end user error.
- the ability to terminate IPSec from Contivity branch office devices, delivering a truly hybrid solution that increases deployment flexibility and extends the geographic reach of affordable IP VPN solutions.
- a new customer service management tool, Shasta NetRIO* Service Management Center, enabling service providers to demonstrate the effectiveness of IP services to their subscribers, while empowering end users to self-provision additional services; review detailed accounting and service reports including firewall analysis; and track how IP services are applied to their traffic.
- support for Multi Protocol Label Switching 2547bis, enabling service providers to deploy Shasta’s wide range of IP services and industry-proven virtual routing capabilities in an MPLS-based network.
- enhanced security interfaces, enabling intrusion detection and anti-virus capabilities to become embedded in network applications.
- consistent Network Access Translation, giving service providers the same security service regardless of delivery mechanism. “Providing a hybrid customer premise- and network-based IP VPN solution is the right approach,” said Ron Westfall, principal analyst, Broadband Infrastructure, Current Analysis. “Nortel Networks has now clearly differentiated an IP VPN solution set that will fulfill the strategic requirements of carriers and businesses in deployment and provisioning of IP VPNs. Shasta will cover all of the requisite bases to deliver a true, hybrid offering with the same IPSec client and common ‘mix-and-match’ IP services in a consistent customer premise- and network-based IP VPN solution.” These enhancements – along with consistent firewall services and centralized provisioning, announced earlier this month as part of the Secure Routing Technology architecture on the Contivity IP Services Gateway portfolio – will enable service providers to address a diverse set of enterprise service requirements, while lowering capital and operational expenditures. “We have been using Shasta 5000 since we built out our network several years ago, and credit the security, flexibility and scalability of the platform as a key contributor to our success,” said Rob McCormick, chairman and chief executive officer, SAVVIS Communications, which plans to evaluate the new Shasta 5000 BSN capabilities. “Being able to provide network-based services that our customers themselves tailor to their own unique needs has provided critical differentiation in the market, and the market response has been overwhelmingly favorable,” McCormick said. The fourth largest IP VPN services provider in the United States according to IDC, SAVVIS recently received recognition for its network-based IP VPN product portfolio, deemed the 2001 “Product of the Year” by Network magazine. “Easy deployment of IP value added services is one of the key requirements we achieved through Shasta 5000 BSN technology, enabling effective development and management of profitable access services to our existing IP/MPLS broadband network,” said Stefano Pileri, chief technology officer, Domestic Wireline for Telecom Italia, another Shasta 5000 BSN user planning to evaluate the new MPLS features later this summer. Shasta 5000 BSN led the global market for value-added IP services – including network-based IP VPNs – with a 58 percent share for the first quarter of 2002, according to the report, “Service Providers Routers and Switches – Quarterly Worldwide Market Share and Forecasts for 1Q02,” issued by Infonetics Research. In the customer premise-based IP VPN gateway market, Nortel Networks continued its 12-quarter lead in the service provider segment with a 35.2 percent share for the fourth quarter of 2001, according to the Dell’Oro Group. In addition to IP VPNs, Contivity provides IP services including routing, firewall, bandwidth management, encryption, authentication and data integrity features for secure tunneling across managed IP networks and the Internet. 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 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 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, Shasta and Contivity are trademarks of Nortel Networks. NetRIO is a trademark of Technica Networks LLC. Contact for Press and Analysts:
Pat Cooper
Nortel Networks
408-495-9608
pat.cooper@nortel.com
Will Cairns
Nortel Networks
+44 1628 43 8031
wcairns@nortel.com
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