Nortel and Microsoft together rolled out a raft of products and services on aimed at delivering business communications over software and Internet networks, A Reuters report said.
The Reuters report said Nortel and Microsoft aim to capitalize on a shift by companies to cheaper Internet-based communications.
The partnership, first announced in July, has yielded 'dozens' of customer deals thus far, with hundreds more in the works, according to the two companies, the Reuters report said.
Nortel said it would reap about $1 billion in new revenue over the life of the four-year agreement, the report added.
The two firms are working on integrating business communications such as email, phone, instant messaging and video conferencing on Internet networks, the report said.
They say their technology will improve productivity and reduce costs to their customers.
The push by Microsoft and Nortel into the business communications market pits the companies against Cisco, IBM, and Avaya.