Cisco, Net2Phone team up on voice over IP

Net2Phone is entering the network management software market, focusing on voice over IP (VoIP) networks, through a joint venture company with Cisco.

Net2Phone will majority own the venture, called Adir Technologies. Cisco will market the network management platform to its VoIP customers. Financial terms of the deal were not disclosed.

Adir will target the software, developed at Net2Phone's research and development labs in 1995, to telcos and internet, wireless, and broadband service providers, as well as enterprise customers worldwide.

Howie Balter, chief executive of Net2Phone, which derives most of its sales from services, said: "This provides new value from existing technologies and will allow us to generate new forms of revenue, not just from services as we do today, but revenue from actually offering product."

IDC analyst Mark Winther said the competition will be fierce. "It's a completely new business for Net2Phone and there are a lot of companies offering this type of network management solution."