Radware Picks Up Nortel Switch

Having filed for Chapter 11 protection, Nortel has been busily trying to revamp its operations and remain viable long term. The company has a number of attractive networking product lines, and one of them seems to have found a new home, so small and medium businesses can now rest easier.Nortel agreed to sell off its application accelerator switch line to Radware. The agreement transfers control of Nortel Application Accelerators (NAA) 510 and 610; Nortel Application Switches (NAS) 3408E, 2424E, 2424 SSL E, 2216E, 2208E; and the Virtual Services Switch (VSS) 5000 to Radware, which becomes the focal point for future product development. In addition, some Nortel employees will become part of Radware. Last Nortel also has the option to OEM the device, which enables the vendor to continue supporting its current customers.

This agreement seems to represent a best case scenario for all of the involved parties. Nortel offloads one product line, so it can try to create more cohesion among its remaining systems. Radware gets a product that at one time was considered leading edge and still has a number of dedicated customers. Small and medium businesses benefit. Radware will either put money in to enhance the Nortel line or more likely increase the level of integration between its switches and the Nortel devices. Further down the line, customers could gracefully migrate from the Nortel systems to Radwares products.

Nortel was a successful supplier of networking products to business. The company has other product lines that have been left hanging in the wind as the vendor tries to dig itself out of bankruptcy protection. Whether or not the firm can strike other deals is unclear. If not, customers will be left with either sticking with Nortel or switching to another vendors products, a transition that many would probably prefer not to be forced to make.