The solutions launch into the market for analytical CRM tools, a market that industry research firm Datamonitor has predicted will reach $3 billion by year's end.

The jointly developed apps will integrate with Nortel Networks Clarify eFrontOffice solutions and will leverage the analytics and marketing automation applications of Broadbase Software -- under an OEM licensing agreement.

Financial arrangements were not disclosed.

"Analytics are becoming critical with the explosion of channels for communicating with customers," said Chuck Bay, chief executive officer, Broadbase Software. "Nortel Networks and Broadbase Software share a common vision for developing e-business solutions  Together, we're creating a  combination of cutting-edge analytics, industry-leading CRM solutions and high-performance Internet infrastructure "

Nortel said its Clarify Analytic Applications will provide insight into the effectiveness of various interaction channels -- phone, fax, Web, e-mail, in person and handheld devices, and can help to segment customers based on revenue, cost to serve or overall profitability. Marketing, sales and service decisions can be based on this information, which also helps in determining appropriate follow-up to improve customer communications, retention, growth and profitability.