Nortel and Microsoft form four-year 'Innovative Communications Alliance' alliance.

So, how do you go about building a $1 billion business in three years?

According to Mike Zafirovski, CEO of Nortel, first, you license your technology to Microsoft. Secondly, you create joint development teams (so Microsoft really knows how to do this, right? NOT.) Thirdly, you create an enterprise-focused (don't we already have these on every street corner?) SI division. Frankly, even creating a $100 million enterprise SI is a tough slug. I guess Zaf is going to buy one or two.

Fourthly, you invest in joint marketing and sales. The goal here is to migrate 20% of Nortel's installed base (is that the Meridian customer base?).

Strategically, the battleground is lining up Nortel-Microsoft and Siemens-Microsoft against Cisco-Nokia.

LightReading's view.

This is going to be interesting. 😉

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