Pierre Blom
Channel Manager Nordic & Baltic’s
NES
A Compelling Combination
 Large, loyal Customer Base
 Strong Channel Centric Go-to-Market Model
 Accelerated innovation through added expertise and the
ability to increase investment
 Opportunity to provide maintenance services to the NES
base and the NES Partner Community
 Geographic Scale and Industry Breadth
 Innovations that Synergistically Enhance the Portfolio
Nortel Integration
Acquisition Closed by End of Year as
Committed
Companies Have Similar Heritages
– Cultures similar … Different stages of transforming
Shared Vision of Product Architecture … SIP
– Roadmap delivered 30 days from closing as
committed
Integration Plan Prior to Acquisition Closing
– NES was restructured prior to December 18
Additional Resources Added to Avaya
– Organization implemented Day 1
NES Acquisition Financing
 Purchase Price $900M
 Financing is a combination of cash, debt and equity
 Additional financing committed – cost and pricing of debt
not impacted by rating
 NES Financially Restructuring Assets as Required by
Bankruptcy before purchase by Avaya
 Apply Avaya Operational Improvement Programs
Transformation of Avaya
Implemented Business Unit Structure
Implemented Operational Management System
One Touch Supply Chain Transition
Increased Investments in Process and Systems
Launched Channel-Centric Go-to-Market Strategy
Introduced Channel Enabled Services Strategy
Strategic Priorities FY10
Profitable
Growth
Operational
Improvements
FY10
NES
Integration
Increased
Relevance
In Summary
Great Progress on Our Transformation
… Despite Global Recession
Strategy Solid – Financial Model Strong
Continued Focus on Ease of Doing Business
Channel Focus Gaining Momentum
Innovation is Key to Market Leadership
Well Positioned for Unprecedented Market
Opportunities
Thank You
Pierre Blom
pblom@avaya.com
Integration Roadmap
Asko Hotakainen
Senior Sales Engineer
April 2010
Key Topics
Leadership
Vision
Portfolio
Strategy
Roadmap
Global Communications market leader uniquely
focused on enterprise communications
No boundaries – driving productivity and
accelerating business across the enterprise
Protect existing investments
Extend with new applications and value
Grow into future enterprise-wide architecture
Evolutionary path for every customer
© Avaya Inc. 2010. All rights reserved.
10
The Markets We Serve
UC
CC
Data
Services
Small & Medium
Enterprise
Enterprise
Midsize Enterprise
© Avaya Inc. 2010. All rights reserved.
11
Business Impacting Trends
Economy & Growth
Generational
Social
Networking
Environmental
Mobile
Living
Virtual Worlds and
Communities
12
Impact of Social Media
The World has Changed
% of self service transactions
performed over web 2005 - 2009
% of Gen X internet users
who posted about a
product or service
© 2009 Avaya Inc. All rights reserved.
14
Evolution of Standards - New Enablers
Challenge: We need to work together!
Business Process Transformations:
80s – 90s Computing
End Users
Automation of Tasks and Data
Millennium - IP Networking
No-Boundaries, Globalization
NEXT WAVE – Real-time Communications
Disjointed Workflows
No context
Communications
Disparate
Multivendor
?
Applications
Not communication
enabled
& Siloed
16
The Connected Enterprise
End Users
Productive
Interaction
Interaction is
intelligent, adaptable
& personalized
Avaya Agile
Communication
Communications Environment (ACE)
Infrastructure
protected, leveraged
into new value
Intelligent
Automation
Collaborative
Engagement
Applications
Agility, Enhanced
Customer Service
17
Avaya ACE Integrates your Communications
and Business Applications
IT Standard Interfaces (Web
Services, Plug ins…)
Avaya ACE software
provides developer
toolkits and applications
that allows:
 Flexibility at the desktop
 Integration to 3rd party
business applications
 Custom or packaged
applications
Robust Exposed
Services:
Communication Standard
Interfaces (SIP, CTI…)
Unified context and
presence
Composite Applications
IT Toolkit for simplified app
development
18
Avaya ACE Applications for UC Desktop
UC Desktop (Microsoft, Lotus)
Savings of $300/user/yr on travel
and conferencing
Mobile Cost
Optimizer
Corporate Portal
Call Charge
Savings of
$540/user/yr
Time Savings
$1500/yr/employee
Challenge:
 Increase social networking, real
estate savings for a global, mobile,
knowledge-based workforce.
Solution:
 UC Desktop with IBM Lotus, HSBC
Corporate Portal and ACE Hot
Desking.
 Integrate Nortel, Cisco and Tandberg
solutions federated in four regions.
Results:
 Employee productivity increased.
 Reduced travel costs.
19
Avaya Vision
PLUG & PLAY COMMUNICATIONS
Powered by SIP:
Open & Standardized
Delivering
Communications Enabled
Business Systems
Enabling Effective &
Contextual Collaboration
© Avaya Inc. 2010. All rights reserved.
20
Avaya Unified Communications Portfolio
Communications
Systems
User
Collaboration
Group
Collaboration
All current Avaya and
former-Nortel enterprise
communication systems,
gateways, and phones
Productive user
experiences on any
device, mobile, desktop,
embedded in applications
Unified messaging, audio
and web conferencing,
desktop video, integrated
third-party telepresence
Avaya Aura™
Flexibly connecting systems, users and applications enterprise-wide
PLUG & PLAY COMMUNICATIONS
© Avaya Inc. 2010. All rights reserved.
21
Evolution of Enterprise Communications Architecture
Past
Present
Aura
Application
Application
SIP
Presence
SOA
Application
Application
Application
Connection
Management
Connection
Management
Connection
Management
IP H.323
Access
Access
Access
SIP
Access
TDM/ISDN
Core technology change drives
fundamental architecture change
© 2009 Avaya Inc. All rights reserved.
22
SIP based Communications applications
USERS
Telephony
Apps
Apps
Avaya Aura™
PSTN
IP/SIP based
© Avaya Inc. 2010. All rights reserved.
23
SIP based Communications applications
USERS
Telephony
CC
IVR
ACE
Avaya Aura™
Conferens
PSTN
IP/SIP based
© Avaya Inc. 2010. All rights reserved.
24
Context Based Communications:
Traditional Routing
Model
Customer Service
Collaboration Session
Customer
Data
Customer
Multi-Channel
Service
Self-Service
Customer
Routed to Agent
CTI
Customer
Data
Recording
Resources
Brought to the
Customer
?
Customer
Routed to Agent
CTI
Self-Service
Customer
Context
Conference
Persistence
Customer
Data
Agent
Assist
Expert
Assist
25
Integrated Product Portfolio
Roadmaps
Data
UC
CC
The Unique Value of
Avaya Data Networking
The Markets We Serve
Ethernet
Switching
Wireless
Networking
Unified
Branch
Access
Control
Unified
Management
Branch
& Remote
Enterprise
Campus
Data Center
Continuing aggressive investment in the Portfolio
28
Avaya’s Unique Value Proposition
Dependable
Efficient
Cost
Effective
Intelligent components &
designs, powerful networking
that can be fully trusted to
deliver
Improving the effectiveness of
a business by creating a
simpler & more effective
network
Networking that is
deterministic & optimized, and
one that delivers superior
value for money
 Up to 7X better resiliency
 100% Call Completion even
during failure scenarios
 Up to 20X better performance
 Pioneered best-practice design,
saving 1/3 equipment
 Up to 50% better TCO
 Up to 40% more energy-efficient
29
The Bottom Line
 5-Year cost comparison of
Avaya & Cisco Systems
provides telling results
1,600,000
1,400,000
1,200,000
1,000,000
 Cisco premium can be
over 100%
800,000
600,000
400,000
 Up-front CAPEX is the
largest cost comparison
component
200,000
0
Total CAPEX
Maintenance & Support 5 Year Cost Comparison
Avaya
 Maintenance and support
is not insignificant
Cisco
3,000 User Campus LAN Cost Comparison
 Power consumption is
becoming a consideration
30
Highlights
 High performance resiliency
Core
Modular Chassis
Ethernet Switching
 Pioneering Switch Cluster
high-availability solution
 2nd largest Core installed-
based
Access
Stackable Chassis
 1st & only to break through
the Terabit Stackable
boundary
 True end-to-end high-
availability solution
 Recently refreshed portfolio
31
Wireless Networking
Highlights
 Highlights
 Complete 802.11 a/b/g/n
Campus
portfolio
 Optimized for voice &
multimedia
 Strong WLAN resiliency,
scalability and security
 Partnerships with market
leading vendors
Branch
 Compatible with any network
32
Unified Branch
WAN Core
Highlights
 Up to 5X reliability & 2X
performance advantage over
market leader
 Tighter integration between all
Branch devices
 3rd-party compatibility with
SIP Call Servers & IP Phones
 Delivers the survivable SIP
Branch
Voice platform for the Branch
33
Unified Communications Management
Highlights
Subscriber Manager
 Application co-residency
delivers lower CAPEX & OPEX
Virtualization Performance
& Fault Manager
Enterprise Policy Manager
 Provides integrated workflows
for managing unified
communications networks
 Integrated workflow reduced
errors
IP Flow Manager
 Increased multi-vendor
support
Network Resource Manager
 Simplified system admin
configuration simplifies use
Configuration & Orchestration Management
34
Unified Communications
Integration Roadmap
Unified Communications Roadmap Strategy
 Continue to benefit with
existing systems
 Upgrade to current
SIP-ready releases
 Richer support and
professional services
Grow
Extend
Protect
 Evolve to an open and
flexible enterprise-wide
real-time architecture
 New innovations driven
with combined investment
 Integrate current systems  Industry-specific solutions
into Avaya Aura™
 Share SIP-based
applications across all
users and locations
© Avaya Inc. 2010. All rights reserved.
36
Evolutionary Path for Every Customer
Legacy Meridian
Apps
Apps
Apps
CS 1000
MCS 5100
BCM/SRG
Branches
Avaya Aura™
Service
Providers
CS 2100
SL-100
AS 5300
Communication
Manager
Legacy DEFINITY
All current systems can be SIP connected
Integral 55
Lower costs, accelerate new application
deployment, and serve customers everywhere
(Germany/EMEA)
Multivendor
Protect … Extend … Grow
© Avaya Inc. 2010. All rights reserved.
37
CS 1000 Roadmap
Today
12 Months
18-30 Months
Avaya Aura™
Application & Services Integration
Voice/Video
Services
Presence
Services
System
Manager
Session Manager
CS 1000 R7
CS 1000
Extend value with Avaya Aura™
 Compelling ROI
 Shared SIP Applications
 Common User Interfaces
Upgrades and Extensions
BCM branches
CS 1000
BCM branches
CS 1000 R6 (today)
SIP-based
Access
 1100/1200 SIP phones
Avaya Aura™ ready
upgrade
Meridian
Continue to add CS 1000 phones and systems
© Avaya Inc. 2010. All rights reserved.
38
CS1000 Release 7.0
Open
Simple
•
•
•
•
•
•
•
•
•
• Centrally Managed High Scalability
Solution
• System Capacity increases
• Centralized Management (TM retirement)
• Simplified Deployment & Configuration
• IP Attendant Console
• IP Line Enhancements
• Product Improvement Patches Integrated
IP-Based Media Services
SIP Line & Trunk progression
SIP Clients
SIP Contact Centre Enhancements
Integrated IM and Presence
Enhanced IP Call Recording
IPv6
Co-resident solutions
UC Integration with Microsoft & IBM UC
Secure
Resilient
• Integrated Session Border Control
• Enhanced Security Management
• Automatic Data Replications
• Survivable SIP Media Gateway
• Increased capacity
• Removal of distance limitations
• Enterprise Converged Branch
• Design for Operability
Chart 39
Contact Center
Communications
Product Strategy
& Roadmap
Context Center Roadmap
Today
12 Months
Avaya Intelligent Customer Routing (ICR)
18-30 Months
ngcc
TM
extend
Upgrades and Extensions
Avaya Call Center Elite
ngcc
TM
Avaya Interaction Center (AIC)
NES Contact Center
ngcc
TM
Straight-forward upgrade to NGCC for NES
Symposium and NES Contact Center customers
NGCC is path for SIP Multi-Channel Contact Centers for Mid
Market in 2010 and Enterprise in 2011
 Avaya CC Elite: mission
 Avaya CC Elite to NGCC
 In addition to multi-
critical voice
 Voice Portal First /ICR:
enhanced self-service &
CAPEX reduction
stepping stones: SIP trunks,
ICR, Avaya one-X® Agent 2.0
 Infrastructure & interoperability
investment protection with
Avaya AuraTM
channel, NGCC path
forward expands to also
support
7 x 24 critical
and voice-only operations
 Partner and Avaya
Advisory and
Implementation Services
Performance Solutions Roadmap
Today
12 Months
Avaya IQ
18-30 Months
Avaya
Performance
Center
NES CC Reporting
ngcc
TM
Avaya Work Force Optimization
upgrade
NES Contact Recording and Quality Management (CRQM)
Upgrades and Extend with APC
Avaya Call Management System (CMS)
Avaya one-X® Agent
NGCC Agent
Desktop
ngcc
TM
NES CC Agent Desktop (CCAD)
 Initial NGCC release: CC
 Avaya CMS: Extend with Avaya
Reporting and Agent
Desktop
Performance Center actionable
insights
 Avaya Performance Center
supports CC Reporting
consolidation
 Avaya Performance
Center, Avaya WFO,
NGCC are path forward
Self-Service Roadmap
Today
12 Months
Avaya Proactive Contact
18-30 Months
ngcc
TM
Avaya Voice Portal (Dialog Designer)+ Proactive Outreach
Customer
Experience
Portal
upgrade
NES Interactive Communications Portal (ICP/SCE)
Extend and transition applications
support
NES Media Processing Server (MPS)
Voice Portal is path forward
 Leveraging ICP, NES Media Application
Server (MAS) and Service Creation
technology in Voice Portal & Customer
Experience Portal
 Avaya Voice Portal
(Dialog Designer): new
Self-Service Applications
 Avaya Proactive Contact:
new Outbound Dialer
systems
Open Standard Service Creation
 New and existing VXML/CCXML based
applications run on Voice Portal
 Avaya Proactive Outreach
Manager: multichannel
customer care
 Customer Experience
Portal: Multichannel
Inbound / Outbound
 Voice Portal & ICP:
Straight-forward upgrade
Avaya Product Lifecycle Policies
All current UC products are available for sale throughout 2010
The only UC end-of-sale to be announced in 2010 is NMC and MCS 5100
Any future end-of-sale for any product will have at least 9 months notice
Products have 6 total years of support following any end-of-sale
Years
End of Sale
Announcement
minimum
9 months
1
2
3
4
5
6
End of Product
Orderability
End of
Manufacturers
Support
(Software)
Extended Software Support
(optional, for purchase)
End of
Manufacturers Extended Hardware Support
Support
(optional, for purchase)
(Hardware)
End of
Extended
Support
End of
Extended
Support
© Avaya Inc. 2010. All rights reserved.
44
Summary and Next Steps
 Protect your investments, simplify and lower
Summary
TCO with upgrades and on-going support
 Extend business value with new SIPconnected productivity applications and
accelerate business processes with ACE
 Grow at your own pace into the Avaya Aura™
enterprise-wide architecture and enhanced
collaboration and customer service solutions
 Adopt current releases,
Next Steps
become SIP-ready
 Incrementally add “self
funded” application value
 Start detailed discussions
with Avaya and partners
PLUG & PLAY COMMUNICATIONS
© Avaya Inc. 2010. All rights reserved.
45
Tack