Info Security Products Guide: How important is security to Nortel's overall growth strategy?

Atul Bhatnagar: Security solutions are strategic to Nortel. Threats in today’s networks are increasing and if our customers do not have the right tools or assistance they could inhibit converged networks and mobile applications . Security is a matter of trust. Without it customers will not purchase next generation networking technology and services. Nortel has been increasing our investments in a variety of areas in order to become a true leader in security and deliver on the promise of complete solutions. A sample includes:

• Solutions/Products: Nortel is developing solutions / products based on CXO concerns and priorities. One example is the Nortel Secure Network Access (SNA) solution. Nortel SNA extends endpoint security and policy compliance to secure the enterprise LAN infrastructure. Because so many threats are from internal users on the network, endpoint security must include wired and wireless endpoints within the corporate network. The Nortel Secure Network Access Switch is the intelligent policy engine that applies and enforces security policy to any/all LAN users/devices at the point of network access. Nortel SNA integrates security into the Ethernet routing fabric with host integrity and user based policy checks to monitor the network for anomalies and block unauthorized traffic. The solution helps customers protect their networks by inspecting PC health state and restricting and remediating non-compliant clients for role-based network access to ensure LAN network integrity. This solution is open standards based; premised on the Trusted Computing Group (TCG) architecture and will provide network assurance for MS NAP.

• Services: Nortel offers a range of services to assist our customers’ varying security needs. We offer our customers assistance with their compliance needs for industry regulations such as HIPAA/GLB/ SOX in the US, PIPEDA in Canada, and the EU Data Protection Act in Europe, as well as with following industry best practices such as ISO 17799 or FFIEC, or even their own corporate security policies. We also offer a number of professional security consulting services such as network assessments, security policy development, Wi-Fi and convergence assessments, secure design and implementation services. We also have a full suite of managed security services and can build our customers their own customized Security Operations Centers.

• Partnerships & Alliances: Nortel’s security partnerships and strategic alliances are a key ingredient to secure networks and specifically to a Layered Defense model. No one company owns the best technologies across every area of network security. Nortel partners with some of the industry's leading security vendors to leverage Nortel's strengths (layer 1 to 7, wire speed, layer 4-7 deep packet inspection expertise), together delivering some of the industry's most innovative security solutions. Nortel also leverages our branded Developer Program to initiate and foster relationships with market-leading companies who develop and deliver security applications and products that complement Nortel security solutions. With partner solutions including authentication options to solutions to detect network anomalies, Nortel is proud to let our customers choose which partner solutions they need to meet their own unique network requirements. A few examples of Nortel’s partners are CheckPoint, Concord, DataPower (an IBM company), Entrust, Opsware Inc., RSA Security, SourceFire, Senforce, and Symantec.

Info Security Products Guide: Sophisticated and blended attacks coming from anywhere and everywhere, there is no doubt enterprises have proactively started thinking about protecting their digital resources. How would you say Nortel is best positioned to serve these awakened enterprise customers.

Atul Bhatnagar: Nortel secures communications, information and applications anywhere, anytime. We take a systemic view of security to ensure that all aspects of your environment are secured. As described in our Unified Security Framework, a network security program must encompass the people using the network, the processes that govern network use and the technology used to enforce the security.

Nortel understands that only a holistic approach to network security can be truly successful. It’s not just about securing a box, a system or an application, it’s about securing the entire network, end-to-end. Security must be considered up front and designed into the network from the very beginning. A layered security strategy protects the enterprise network at all points of potential attack. At the core of Nortel's commitment to security is what we call the “Layered Defense” approach and it consists of 4 key solution areas, namely:

    • End Point Security
    • Communication Security
    • Perimeter Security
    • Core Network Security

Based on open, standards-based solutions, our Layered Defense approach enables easy integration and a simplified operation that reduces the overall network security total cost of ownership as well as enhances quality of experience for users.

Understanding “security” means understanding “networks.” At Nortel we’ve been helping customers of all network types and across the globe build the latest networks for over 100 years. Here are some key differentiators:

• Architectural leadership focus: Treat Security architecturally, always: tight solution integration – not “bolt-on” afterthought

• Broadest offering : Only company that delivers security for all network types, to layer 7

• Performance : Performance key consideration with security

• Operational considerations : Best security for the given operating environment

• End-to-End : Apply end-to-end engineering with security, whose service impact must be minimized.

• QoE :Security mechanisms chosen to prevent degradation of QoE and maximize system capacity

• Layered Defense :Providing multiple mechanisms to protect your unique network security needs – segregation, encryption, AAA and best practices

• Carrier Grade focus :Redundant security for high availability

• Customer insight : Expertise in both enterprise and service provider networks

• Open solutions : Our solutions encourage interoperability, and use on multiple operating systems

• Minimized Total Cost of Ownership : Focus on simplicity, efficiency, and proactive response

• Partnerships: We have alliances with some of the industry’s leading security experts: Symantec, CheckPoint, SourceFire, etc.

Info Security Products Guide: How does Nortel plan to augment its security portfolio? What security products are dominant today and where is Nortel planning to strengthen? Are there any recent strategic tie-ups or planned acquisition that will strengthen Nortel's portfolio further?

Atul Bhatnagar: There are a number of key initiatives we are bringing to market in 2006:

• Security for Multimedia Communications – Solution for protecting the multimedia infrastructure from network attacks and securing the signaling channel of multimedia protocols using the Secure Multimedia Controller.

• End Point Security and Network Access Control – A comprehensive clientless solution to authenticate (scan, block, quarantine, and remediate) endpoints accessing the network and enforce policy compliance, using the Nortel Secure Network Access Switch. The solution is based on open standards, and delivers network assurance for MS NAP.

• Continued enhancements around our Secure Remote Access VPN solutions – Flexible support for both IPsec and SSL VPN access for managed and unmanaged users/devices with common end point security for all device types (Windows, MAC, Unix and mobile devices). Support for Multimedia (VoIP and SIP) over SSL VPN and continued enhancements around high availability and persistent security while mobile.

• Security in Nortel switches – Integrated security in Nortel Ethernet switches (ERS 8600) with the ability to do full firewall and IPS packet inspection on a per port basis. Attack protection capability in Nortel Layer 4-7 Application Switches.

• Adding security to our Layer 4-7 application switches is a critical element in Nortel’s vision of weaving security into the fabric of the network.  These switches sit in front of applications and Web services and ensure their availability by load balancing, application optimization, filtering out malicious code, blocking denial of service attacks (DoS) and by detecting and preventing intrusions.  Nortel is working with Symantec to ensure that the most recent attack technology can be detected.  Because these products sit directly in front of application servers, they are effective against both external and internal threats, making them an important component of our Layered Defense strategy .

• Delivering “SNORT-based” Intrusion Detection/Prevention with our Threat Protection System (TPS) which combines the benefits of signature, protocol and anomaly-based inspection methods. When TPS is deployed in combination with layer 2/3-7 Switches, Switched Firewalls and our Nortel SNA solutions, customers can leverage Nortel’s preventive/automated remediation actions by each network/security component acting together as a system to protect their network to dynamically thwart attacks and isolate network/host vulnerabilities .

• Nortel Switched Firewall - Ongoing improvements on NSF 6400/6600 and 5100-- (R55,R60) IPv6, Bandwidth Management, BBI Improvements, and Secure XL

• On January 18, 2006 Nortel announced the acquisition of Tasman Networks, a San Jose based company that provides a secure portfolio of enterprise routers, strengthening our ability to provide an end-to-end convergence solution. Ideal for enterprise branches, remote or regional site environments, Nortel Secure Routers are optimized to deliver the low latency, high packet throughput required for IP telephony and multimedia applications. The Secure Router family includes an extensive suite of advanced security features, including VPN, stateful packet inspection firewall, encryption, authentication, access controls, network address translation (NAT) and virtual local area network (VLAN) tagging and forwarding protection.

Info Security Products Guide: Going forward what can enterprise customers expect from Nortel in 2006 when it comes to security?

 Atul Bhatnagar: Customers can expect Nortel to provide best in class security solutions based on challenges in securing Multimedia, Mobility and the LAN. These solutions will not only include Nortel products, but also services and third party components. We will continue to partner with some of the industry’s leading security vendors to deliver some of the industry’s most innovative security solutions. From a services perspective, we have an emphasis on helping our customers securely deploy their converged and mobile networks with services such as assessments, secure design and implementation services, as well as a suite of managed security solutions and professional security consulting services.  For customers who want to adhere to industry best practices, regulations, or build their own corporate policies and regularly test their postures, we will continue to offer a range of compliance services. Our customers can continue to decide whether they want to do it all themselves with the Nortel security portfolio, manage their network’s security with some assistance, or enlist assistance in managing any or all of their security functions.

While Nortel may not be known in the market as a “security” company, we have a 100 year heritage of deploying secure reliable communications systems and networks. Nortel has made secure connectivity available to more than 100 million users worldwide, is the only vendor certified as an end-to-end provider of convergence solutions for the U.S. Defense Switched Network, and has a comprehensive security portfolio that is second to none.

With more than 20 years of experience in the computing and communications industry, Atul Bhatnagar, as Vice-President and General Manager, has led the Enterprise Data Networks Division of Nortel for the past five years. This business unit designs and markets a full range of Secure Ethernet Switches, Enterprise Routers, Secure WLAN Solutions and innovative IPSEC/SSL VPN offerings. His team recently introduced innovative Alteon Application switching solution for high density Blade Servers. This portfolio is defining next generation scalable and resilient IP infrastructure for emerging voice/video/data convergence.

Atul leads Nortel’s drive to infuse Information Security and Resiliency into every aspect of Nortel’s Communications Solution through Alteon, BayStack, Contivity and Passport 8000 product lines.

Previously with Alteon Web Systems, Mr. Bhatnagar was Vice-President of Advance WebSwitching Products, creating next generation WebSwitches and Security Acceleration products.

Prior to joining Alteon WebSystems, Mr. Bhatnagar worked at Hewlett-Packard as General Manager for the Internet Appliance Operation. His tenure at Hewlett-Packard included several General Management assignments in North America and Asia. He led the development of OpenView Wireless Network Management business.