Nortel steps up ‘Cisco Energy Tax’ campaign with cash discounts

| August 7, 2008

Nortel Networks has stepped its ‘Cisco Energy Tax’ campaign up a notch with discounts equivalent to the first year in energy savings for companies migrating to its data transport products.

As Green Telecom reported earlier, Nortel recently coined the term, ‘Cisco Energy Tax’ after a test it commissioned, and carried out by independent test lab, the Tolly Group, found that its data networking equipment consumes up to 40% less power than comparable Cisco equipment and offers energy savings of up to 64% over a five year period.

From the results of the survey, Nortel created the Nortel Energy Efficiency Calculator, which analyzes deployment scenarios based on different configurations, equipment, cooling costs, regional power costs and other energy factors specific to the customer’s network over a one-year period. The approximate energy saving was deemed the ‘Cisco Energy Tax’ by the company’s marketers.

Nortel yesterday launched a campaign in the US that will offer discounts to the equivalent amount of the ‘Cisco Energy Tax’ for customers migrating to its data networking platform. To qualify for the new Energy Savings Credits program, companies must have a minimum of 1,000 employees and network sites in North America and have not purchased any Nortel data networking equipment in 2005, 2006 and 2007.

“Earlier this year, I talked about how the Cisco energy tax isn’t about ‘green’, it’s about money,” Nortel’s Bo Gowen wrote on Nortel’s official news blog, Buzzboard. “And while saving 40% on your network’s total energy bill goes straight to the company’s bottom line, many IT departments don’t even see the energy bill, let alone care about it.”

He added: “This new program eliminates any apathy in the IT department by turning that energy advantage into an up-front credit (and of course you still get the benefit of the energy savings too).”

The Energy Savings Credit campaign runs through December 12, 2008 and is available via Nortel direct sales or its channel sales teams.

“Customers participating in this promotion may double the energy saving benefits of Nortel data solutions – first in the upfront credit, then through reduced energy consumption throughout the first year,” said Net Payne, Nortel vice president, North America Marketing. “We are confident that once data managers see firsthand the savings available to them by integrating Nortel data equipment into their existing networks, they will want to expand their use of our products.”


According Nortel officials in Asia Pacific, the scheme is only available to network installations in the US, so Asia Pacific companies with operations in the US will only be eligible for the discount for network builds inside the US.

“Currently, the program is limited to companies that are geographically within North America regardless of where the company is based. Global companies may take advantage of the Nortel’s program for locations within North America,” Nortel said. “Program of such nature will generally by developed by the regional team based on their understanding of the local business environment and market needs. The regional team has been monitoring the progress and getting feedback from the ground so that we could develop programs that may best suit the needs of customers.”

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Category: Applications, Data centres, Networks

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