Avaya Update

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Avaya hosted its Americas partner event last week in Cancun. I could not be there (I was tweeting away at the Defrag conference). I did follow the tweets from Cancun and thus can offer a second hand update on Avaya:

  • Avaya has been busy with R&D. It came in 114th place last year in patents issued. It won the Thomas Edison Award for its method of enabling real time collaboration. Avaya has been increasing its R&D spend each year for the past four years
  • The fastest growing business units are IP Office, Radvision, and branch networking gear
  • IP Office sales are increasing significantly – growing at 46% quarter over quarter and 100 % year over year
  • 46 percent of revenues come from services and maintenance solutions
  • No IPO in sight
  • The company is pushing indirect channel sales and the Americas revenues are now 26% direct and 74% indirect
  • There is a strong push for partners to attach data gear
  • The Avaya Desktop Video Device continues to be a viable product (?), but Flare and Scopia on the iPad are positioned next
  • The company is seeing significant growth in video soft clients
  • Avaya announced a $30 million win with the Canadian Government

It all sounds pretty good. Many people don’t realize Avaya offers networking gear, the company got into that business as a result of its Nortel acquisition (Bay Networks). It has some strong solutions particularly in wireless, but it put a strain on its relationship with HP, Extreme Networks, and Foundry/Brocade.

There were surprisingly few tweets about Aura, but that doesn’t mean it wasn’t discussed. Nor were there any tweets about the Avaya Collaborative Cloud launched last Spring. The last I heard there was no channel play for the collaborative cloud. The point above about 46% of revenue being services is significant. Avaya has been making numerous changes to capture more in managed services including the

Dave Michels