Radware sees potential in Alteon assets

Despite weakened carrier spending around the world, Israel's Radware sees great potential in the former Alteon Websystems application delivery assets that it is in the process of buying from Nortel Networks. Radware CEO Roy Zisapel told FierceTelecom that while carriers have tightened their core network infrastructure spending, investment in application-related areas remains strong.

"Capex is dropping, but we are seeing concrete plans from many of the carriers for content delivery networks, SIP services, network optimization for application delivery and fixed-mobile convergence," Zisapel said. "As a result, the carriers need to add applications intelligence. There are application delivery issues that will be getting attention regardless of the economy." Application security is another specific driver of carrier investment, and Zisapel said he sees carriers moving to offer cloud-based application security.

As Radware looks to complete the Alteon deal and strengthen its ability to pursue those opportunities, it will face more heated competition from the likes of Cisco Systems, F5, Juniper Networks and others as they look to swoop in and steal customers during the transition in ownership. Zisapel said Radware actually had been talking to Nortel for several months before the larger firm's bankruptcy protection filing about buying the Alteon business, and that the deal's progress was slowed briefly by the filing. Radware has a $650,000 break-up fee coming if the deal fails to close.

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Nortel and Radware announced the sale last month
Nortel last month postponed the sale of its Metro Ethernet unit

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