Last week on March 3, I had the opportunity to go and listen to the Avaya-Nortel integration road show in Indianapolis. A majority of the information was presented at a very high, vision oriented level, but their vision of future communications is important to understand. For those of you who couldn’t attend, I thought it would be beneficial to recap what Avaya said about their current situation.
What is Avaya’s market focus? Avaya has decided to organize “their” marketplace into three segments: Small Business, Midsize, and Enterprise. This is a much more simplified approach than in years past where they focused on a multitude of specific niche industries. i.e. healthcare, financial services, hospitality, and on and on and on.
Around those three market segments, Avaya will be focusing in on the following four services.
- UC – Unified Communications
- CC – Call Center (now referred to as “Context Center” by Avaya)
- Data – Their portfolio of data equipment that Avaya acquired through the Nortel acquisition
- Professional Services
The size and scope of AvayaN
- Currently Avaya is in 55 countries
- 2100 Employees, approximately 5500 employees hired from the Nortel acquisition
- 4000 Global business Partners
- 32 Global Support Centers
Since Avaya was privatized in 2007, customers and partners have had very limited insights into the actual profitability or financial integrity of Avaya. At the road show Avaya revealed a few financial metrics that our friendly CFO’s would appreciate…
- 52% gross margin
- EBITDA is 22% in 09
- Currently have 692 Million in the bank
Avaya shared that Nortel had a common vision encompassing:
- A History of Reliability
- Communication Innovation
- Both companies survival of: the regulation and deregulation of communications
- Both Nortel and Avaya went through the communication technology transformation and arrived at the same place: Analog –> digital –> IP –> SIP
After sharing the history and information on the acquisition, Avaya went on to share their vision of future communications.
Where it’s all going:
- If it doesn’t already, work will go everywhere with you and it has created a blur in the market place. Believe it or not the trend didn’t start with the iPhone or Blackberry it began with voicemail… think about it.
- Mindset difference in future management for sure
- Consumer driven expectations of doing everything on one device
Avaya’s job as communications innovation has changed:
The big thing in communications today is the fact that we are integrating telephony with back-office applications and it requires a lot of custom development. In the near future it will take “weeks in steady of months” and companies will more readily be able to reap the benefits.
The next big thing according to Avaya is going to be persistent contextual communications.
Avaya will be focusing on delivering:
- “plug and play” communications
- Powered by SIP
- Delivering CEBS – Communication Enabled Business Solutions. (Think assembly line for the office)
- Enabling Effective Contextual Collaboration
- Federating outside of individual companies up and down the value chain to power capabilities such as presence and collaborative conferencing features.