Small and Medium Enterprise Communications
Product Strategy
& Roadmap
Joe Scotto
Director, Product and Solutions Marketing
Key Topics:
Small and Medium Enterprise Communications
Leadership
Vision
Portfolio
Strategy
Avaya is now the #1 WW Leader
in small business communications
To be recognized by SME markets and channels as
the provider of choice for delivering the best plug and
play communications experience in the industry.
The strategy is to apply the key principles of
simplicity, customer service and user experience in
all of our portfolio and go-to-market activities.
Roadmap
The roadmap is about investment protection for all of
the combined company’s products, innovation for the
future, and a view of how we’ll get there.
Source: Canalys, Calendar 2008 (Line size: 20-99)
HIGHLY CONFIDENTIAL UNTIL RELEASED IN JANUARY 2010 © Avaya 2009. All rights reserved.
SME Markets:
The Power of AvayaN
SIP Software technology
For SME Markets
Expert in SME: Proven Track Records
Focus: One of 3 Business Units
Trusted Innovation and Investment Protection
Strong Service Provider and
Reseller Relationships
Simplified Packaging
For SME Markets
Strong Reseller Base WW
& Avaya Connect Program
Solid Track Record for
Converging Platforms
1
Known Reputation for
“Evergreen”
1
#
Small Business
Communications WW1
Source: Canalys, Calendar 2008 (Line size: 20-99)
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3
Global SME Market Leadership
Global SME Telephony Market Share
Nortel
7.4%
Worldwide SME Unified Communications
Product Market Opportunity ($End-User)
Avaya + Nortel
17.7%
Avaya
10.3%
$4+ Billion
NEC
11.8%
Others
45.9%
(Just Product)
Cisco
10.1%
2009
Siemens
7.0%
2010
2011
2012
2013
Alcatel-Lucent
7.5%
Source: Canalys, Calendar 2008 (Line size: 20-99)
Source: Avaya analysis based on multiple industry reports (6/09); SME= firms with <250
employees UC Applications include Contact Center, Messaging, Audio/Video/Web Conferencing
NOTE: Nortel results from industry analysts include results for LG-Nortel and other shipment activity that will be restated in
developing a true baseline for combined Avaya-Nortel performance; Historical market shares may change.
© 2009 Avaya Inc. All rights reserved.
Avaya Strategic Priorities
For SME Markets
Simplicity
Customer
Benefit
Channel
Benefit
Customer
Service
User
Experience
Easy to understand,
to buy and finance
Solutions that help SMEs
retain and acquire
customers
Applications that are
intuitive to use
Simple and profitable for
channels to learn, sell,
install, support
Differentiated value
propositions and
services that save time
Seamless integrations,
EZ quote tools,
roadmap influence
(GRIP)
© 2009
Avaya
Inc. All rights reserved.
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© Avaya
2009.
5
Investment Focus:
Coverage Of Where Market Is Buying
TDM/Key
Systems
Hybrid IP PBX
43% decline in
Double Digit
2009 (Dell'Oro)
Market nearly
disappears by
2013 (Dell'Oro)
NEC and Samsung
are leading players
(T3i Group)
Declining
Transition
growth in volumes
returning
in 2011 (Dell'Oro)
SIP Software
Significant growth
projected through
2012 (Gartner)
SIP continues to
24% percent of
SMBs say that they
already have or are
currently
implementing a UC
solution. (Forrester)
Growing
gain strength as
the dominant
protocol used by
all of the vendors
playing in the VoIP
market (IDC)
Projected
Growth
© 2009 Avaya Inc. All rights reserved.
6
Day One Portfolio:
SME Communications
TDM/Key
Systems
Hybrid IP PBX
Avaya PARTNER®
Declining
Avaya Integral 5
Avaya Norstar
Avaya
IP Office
Growing
Avaya BCM
SIP Software
Projected
Avaya
SCS
Growth
© 2009 Avaya Inc. All rights reserved.
7
The SMEC Roadmap
Will Streamline for Simplicity, Focus On Innovation
For Sale Today
2010
2011
Avaya IP Office
P L AT F O R M S
CONVERGE
Avaya Integral 5
Avaya PARTNER®
Investment Protection:
Avaya Norstar
Products Will Converge with IP
Office into best of breed solution
All products
remain for sale*
Avaya BCM
Avaya SCS
*Note: In addition, support policy includes 3 years of manufacturer support beyond any effective end
of sale date, as well as 3 years of Avaya service support beyond end of manufacturer support.
© 2009
Avaya
Inc. All rights reserved.
HIGHLY CONFIDENTIAL UNTIL RELEASED IN JANUARY 2010
© Avaya
2009.
BCM & Norstar Convergence
With IP Office
What you like
about BCM and
Norstar stays
Nortel Partners
Nortel Installed Phones
Nortel Interface
Nortel Features
© 2009
Avaya
Inc. All rights reserved.
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© Avaya
2009.
9
BCM & Norstar Convergence
With IP Office
What you like about BCM and Norstar stays
IP Office DevConnect Eco-Systems
Avaya New & Installed phones
Nortel Partners
Nortel Installed phones
IP Office Management
Nortel Interface
IP Office Features (Resiliency, Mobility, etc.)
Nortel Features
IP Office Platform
Yo u b e n e f i t f r o m w h a t i s
unique to IP Office
© 2009
Avaya
Inc. All rights reserved.
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© Avaya
2009.
10
Avaya IP Office
Ideal for Converging Portfolio and for SME Markets
5.0
IP Office 500
Single, Modular Platform
Scales to 384 users per system, 32 sites
Simple, role-based solutions
3.0
Merlin Integration
4.0
PARTNER® Integration
Integral Integration
6.0
POWER
USER
AGENT
MOBILE
WORKER
7.0
BCM, Norstar Integration
Avaya AuraTM Integration
© 2009 Avaya Inc. All rights reserved.
Avaya Product Lifecycle Policies
All current SMEC products are available for sale throughout FY2010
No end-of-sale to be announced in FY2010 for any SMEC Nortel products
Major heritage Nortel products will have at least 9 months notice
Products have up to 6 total years of support following any end-of-sale date
Years
End of Sale
Announcement
minimum
9 months
1
2
3
4
5
6
End of Product
Orderability
End of
Manufacturers
Support
(Software)
End of
Manufacturers Extended Hardware Support
Support
(optional, for purchase)
(Hardware)
End of
Extended
Support
© 2009 Avaya Inc. All rights reserved.
Investment Focus:
IP Office and SCS Overview
IP Office
Software Communication
System (SCS)
Hybrid IP PBX
Single, Modular UC Platform
SIP Software
Open, Native UC Application
Launched 2002
6,000,000 users WW
Launched 2008
Current deployment: <15,000 users
Managed on premise
Managed in the data center
Telephony-centric buyers
IT-centric buyers
Voice Resellers
Service Providers
Data Resellers
Regional SIs
© 2009 Avaya Inc. All rights reserved.
13
Evolutionary Path:
SME Communications Portfolio
Protect
Extend
 Support of Nortel Phones  Nortel data management
on IP Office
for migration
 Nortel management
 E.g. call log, PBX
interface emulation on IP
configuration
Office
 Feature Parity
 Eco-system of technology
partner migration
Grow
 Increased R&D investment
to focus on new features
 New talent, greater
resources to focus on
fewer products
 Innovation and market
differentiation
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14
Evolutionary Path:
For Partners
Protect
Extend
 Protects installed base &
 Extend their Expertise:
 Add or expand IP office
 Get field sales teams
Services revenue
 Customers Can Stay
Where They Are
 Continue to Sell / Upsell
authorized to sell
 Get technicians
Fast-Track trained
Grow
 Become an IP Office Expert:
 Leverage DevConnect to
deliver solutions
 Expand to new markets –
very small, mid market or
verticals
 Add SCS
 Add Avaya AuraTM
© 2009 Avaya Inc. All rights reserved.
15
How We'll Get You There:
Helping Partners Achieve Business Value
 Embrace all Channel Partners with
Avaya Connect
 Rapidly train Partners on the full
Avaya portfolio to Extend and Grow
all current systems
 Accelerate SME partner services
offers with Avaya technical expertise
 New offer launches in Q1 2010
Avaya and
Partner
Services
 Backbone support
 Extended warranty and advanced
Grow
parts replacement
© 2009 Avaya Inc. All rights reserved.
Key Recommendations
What It Means For Your Clients
Keep Recommending What You’re
Recommending
BCM and Norstar: For Sale
Future Path For All Products
Convergence to the IP Office platform
Become An IP Office Expert
Sales, Design, Install, Maintain
© 2009
Avaya
Inc. All rights reserved.
HIGHLY CONFIDENTIAL UNTIL RELEASED IN JANUARY 2010
© Avaya
2009.
Summary and Next Steps
 New Avaya is #1 WW in Small Business
 Strong portfolio, experience, innovation and reach
 Buy today or tomorrow: You have a
Summary
secured path to the future
 All products are investment protected
 BCM and Norstar features will converge with IP Office
 Note: Combined manufacturer and service support policy is
six years beyond end of sale of any product
 Migration of BCM and Norstar Experience
Next Steps
to the IP Office platform
 Education and training
 New promotions and programs
thank you
For More Information:
Contact your Consultant Relations Manager
© 2009 Avaya Inc. All rights reserved.
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