Since the news broke out and the M&A between DingLi and AmanziTel became public I got several press calls, with so many calls during the day and so many questions it feels like I was conducting a press conference. The two main questions I have been asked were:
• Why merge with DingLi, a Chinese company?
• How did the merger came about?
First off its more of an acquisition than a merger with DingLi being the bigger partner, however I like the word merger (something like Nokia merging with Siemens to create NSN, we all knew what happened to that) so I will stick with that.
Why a Chinese company like Dingli and why not take merge with Western companies or take investment from western investors? The simple answer is actually provided by Robert Lindell (who joined DingLi from Ascom / TEMS) and I quote “In a few years time one third if all employees will be employed by a Chinese company”. That is a very strong statement, however more than that there are several benefits to both parties which I will outline here:
• DingLi has the hardware tools while AmanziTel have the software solutions, jointly allow us to provide a true end-to-end network performance monitoring, management and optimization solution. The solution is not just what others call as end-to-end, but true end to end from data collection on various interfaces to correlation of network, business and service performance. This goes up to automated reporting in various levels from engineering to top management on the same data sources without the need for manual manipulation.
• DingLi has plans to expand outside China while AmanziTel is penetrating the largest telecom market in the world and with a combine product both can be achieved
• To the customer its more than cost savings, its adding value to their operations and ensuring a lasting partnership with solutions driven by their unique environments and business strategies
• Cross innovations in home markets, this merger enable us to increase our research and development and at the same time bring close collaboration with both Chinese and Scandinavian vendors and partners
Of course since it’s really an acquisition there’s the financial incentive, it’s not the main driver but it is a component of the deal.
This merger took several months in the making to ensure that everything is in place and that the combination of products will create the desired solution for our existing and potential customers. Careful evaluation of each other’s products and more importantly the combine solution took the most time while the legal aspect like in any mergers simply took its own course. So now that the merger is public, the new solutions are actually ready to be deployed and the first few customers are lined up.
This are exciting times and as CEO of AmanziTel, the challenge of delivering the solution with the desired results to our customers takes the highest priority in the this phase of our operations. Both our commercial and open source applications are enhanced by the use of DingLi’s test and measurement portfolio, somehow if feels like the early days of Hewlett and Packard….
And oh by the way I am writing this blog while on the air, and for a change I found economy seats where I solely occupy the entire row, it’s good enough to enable to work while on the move…..
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