Alcatel-Lucent Up 0.7% on SDN Launch - Analyst Blog

Leading telecom provider Alcatel-Lucent's (ALU) share price was up a marginal 0.7% on Wednesday, following the launch of the innovative software defined networking (SDN) technology for its enterprise business.

The new technology, designed for the company's OmniSwitch Ethernet LAN portfolio, will enable enterprises to address the increasing demands of employees and customers in an efficient manner.

Alcatel-Lucent expects to benefit from this new technology with a flexible yet affordable solution that is likely to meet the growing demand for such services. As such, the company is building on its Application Fluent Network vision to aid enterprises in the development of SDN-based solutions.

The additional features for automation and provisioning will also be critical in solving real issues and enhancing overall user experience.

The technology that comes with Alcatel-Lucent's OmniSwitch product will be available as a free software upgrade for existing customers. The package also includes the company's OpenFlow support and OpenStack integration products.  These two solutions will support SDN's both northbound and southbound interfaces making OmniSwitch one of the most efficient LAN switches available in the market.

This product launch is in line with Alcatel-Lucent's ‘The Shift Plan', formulated to transform it from being a telecom generalist to a specialist in IP networking and Ultra-Broadband services. The increasing demand for high speed wireless technologies and data services in emerging markets are the keys drivers, which are likely to benefit the company going forward.

Alcatel-Lucent currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Envivio, Inc. (ENVI), ClearOne, Inc. (CLRO) and TESSCO Technologies Inc. (TESS). All three stocks carry a Zacks Rank #2 (Buy).