Avaya tendered a $144 million offer for UK SIP software provider Ubiquity. With this, Avaya takes a large step towards filling part of the void left by Lucent's merger with Alcatel and takes another stab at long standing rival Nortel.

Ubiquity produces key components required when building carrier IMS networks: a SIP Application Server, development tools and a series of prepackaged applications. Strategically, if this goes through, it marks the beginning of a new Avaya.

Avaya was formed when Lucent decided to divest itself of its enterprise network technologies and products back in 2000. As part of the initial arrangement, Avaya would focus solely on the enterprise market - where through the power of the G3 series PBX and Conversant IVR it took a commanding lead - and Lucent would focus on carrier class technologies and never the two shall meet (in the market that is).

However, as TDM (traditional telephone) networks quickly move over to SIP, the line between carrier-tailored and enterprise-tailored solutions becomes very blurry. The key thing holding Avaya from moving into the carrier marketplace is its perception as an enterprise-centric technology and solution provider.

In the enterprise market, the two "big kids" on the block have always been Nortel and Avaya. Avaya argues that having a singular focus on the enterprise allows it to provide superior solutions. Nortel counters back that its carrier business gives it insight that can benefit its enterprise customers. Regardless of which camp you support, if Avaya is able to pull off the acquisition, it will strike a blow at Nortel two ways. First, as discussed, it will allow Avaya to open a second front against its competition from the Great White North as it moves into the carrier market. Second, it puts a component that's commonly found at the center of Nortel's IMS deployments into Avaya's eager hands. Ubiquity and Nortel have been partners since 2003.

If executed, Avaya goes from having almost no carrier presence to being part of the networks of Global Crossing, Tello, Telefonica, British Telecom, AT&T and many others.

Links:

• Avaya
• Ubiquity
• Tender Offer (Press Release)
  
• Light Reading coverage of the acquisition