After much hullabaloo, the actual Nortel auction was anti-climatic. Avaya was bid up by a bunch of other smaller players and ended up paying $900 million for Nortel's Enterprise assets. Did they overpay, maybe... But ebay-style sometimes it's hard to let something go once you've madeup your mind.
Bigger question for those reading the Microsoft Subnet is, What does it mean for Microsoft? Honestly, I don't think it means much. Microsoft has a foothold in the enterprise unified communications market. Not a huge player on the VoIP side yet, but they are integrated with all the major players. A large amount of the OCS voice rollouts I see are integrating with a PBX from one of the big 3-4 vendors. A smaller amount are using OCS as a standalone PBX and are pretty happy with it.
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