vg: The MSFT - Nortel agreement was not directly related or limited to the phone business. In general terms it refers to "communications".
Below is from the MSFT PR announcing the agreement. It gives a little more detail on what the agreement covers.
Components of the Agreement
Strategic alliance
....The companies will enter into a four-year alliance agreement, with provisions for its extension.
....Nortel will be Microsoft’s strategic partner for advanced unified communications solutions and systems integration.
....The two companies will form the Innovative Communications Alliance as a go-to-market vehicle.
....Microsoft and Nortel will deploy the other’s technologies in their enterprise networks.
Solutions and systems integration
....Nortel becomes a strategic systems integration partner for the advanced unified communications solution.
....Nortel believes it can capture substantial new revenue through service offerings such as convergence planning, integration, optimization, monitoring and managed services.
Joint product development
....Nortel and Microsoft will form joint teams to collaborate on product development that spans enterprise, mobile and wireline carrier solutions.
....The two companies will cross-license intellectual property.
....Nortel and Microsoft will engage in early-stage integration and testing.
....Nortel will deliver solutions that complement Microsoft’s unified communications platform, including enterprise contact center applications, mission-critical telephony functions, advanced mobility capabilities and data networking infrastructure.
Go-to-market initiatives
....Microsoft and Nortel will jointly sell the advanced unified communications solution and integration services. The plan is to develop a training and incentive program for the companies’ sales teams.
....Both companies will invest substantial resources in marketing, business development and delivery.
....Microsoft and Nortel will build a joint channel ecosystem using both companies’ systems integrator, reseller, and service provider relationships.
....The two companies will develop a series of compelling solutions for a range of customers, including small and medium-sized business, large corporations and service providers.
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