A perfect strategic merger


Nokia-Siemens merger, most analysts said, would catalyze more such marriages in the business. They have proven with Nokia-Siemens announcement. The merger makes great sense for both the companies.

In any case, Siemens has had an especially tough time in the communications business over the last couple of years. Very recently, it sold its handset making division to the Taiwan-based BenQ. Having done that, it attempted to focus on doing things right with its network equipment division. The company says it’s the world leader in delivering voice over the internet. But in spite of its best efforts, it hasn’t made much headway and has come around to accepting that it will have to go with somebody else.

As for Nokia, while it is a force to- reckon with in the handset business, it has made a few wrong calls on design trends and conceded ground to competitors like Motorola.

On the network side of the business, where it focuses on GSM technology, it could do with additional firepower of the kind Siemens has to target emerging markets more aggressively. To that extent, the merger makes sense for both companies. Incidentally, it will also create savings of $1.5 billion for both entities by cutting down on back office costs.

Over the next couple of months, industry observers expect companies like Cisco, Nortel and Juniper to make similar announcements. Eventually, these alliances will translate into powerful communication networks for users of cellular devices communication devices.

Nokia to move network services HQ to India:

Nokia recently announced the shifting of their global telecom network management services hub to India from its home base in Finland.

The managed services will be led globally from India from July. Asish Chowdhary, currently the head of networks in India, will transition as the new global head of managed services from India by the end of this year.

India will play a pivotal role in Nokia’s managed services success, not only as a large target market but also from delivery and direction perspective.

The managed services division of Nokia, runs the telecom networks of service providers as part of the outsourcing agreement.

The company also announced that its first global network solutions centre in Chennai will serve as the hub for other Nokia operations centers across the world.

India is playing another hub and this time for cellular networks. Already IT and Automobile industry of the world consider India their first preference. This will help the country not only in foreign exchange earnings but also providing employment to local skilled talent. Thus brains can bee retained within the country but their participation is for getting global business to India.



Colorful language
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