Karl Soderlund Vice-President Americas Channel Sales 14 - 16 November 2012 | Cancun, Mexico During Our Time Together Agenda - My Vantage Point: Strength of the Avaya Channel - 365 Days: Foundation for Success - Driving Success in FY13 - Winning Big • IP Office – Brian Murray • Radvision - Patrick Scott • Networking – Dave Fraser - Setting Expectations Why I’m (still) Happy to be Here 14 - 16 November 2012 | Cancun, Mexico FY12: A Tale of Two Avayas Dramatic Programatic Changes Quality Issues Mentality: “Us v. Them” Sentiment: Lethargic Groundswell of Direct Conflict Program Consistency & Predictability Best in Class Mid-Market Technologies Mentality: “Strategic Alignment” Sentiment: Bullish Conflict is exception, not the rule Works in Progress Continuing to Raise the Bar Streamlined & Enhanced Support Aligned distribution under US Channel Leadership Re-Structured Channel Marketing Unified SME & ENT Channel Orgs Simplified Sales/Channel Territories Driving Partner Profitability Better aligning our program benefits to incent behavior and reward results NEW! ENHANCE ENHANCE • New Customer Incentive • Launch new incentive to drive net-new with our Platinum Partners • Deal Registration • Higher payouts for strategic products. Inclusion of SME, Video & Data • Grow Right • Inclusion of Video & Data (SME already included) Investing in Our Partners Actions Speak Louder Than Words IPO Demand Generation Radvision Demo Kits Created IPO 8.1 / Networking Demo Kit Soft Bundles Demo equipment & training for Wave I & Wave II Partners Funded 120 Demo Kits for Partner field offices Q1 Appointment setting campaigns for Wave I partners Funded 31 SME & MM Appointment Setting Campaigns Bounce Back 23 hand-picked partners Additional support from Avaya teams Strategic planning meetings and path to success plans Qualified Leads Leveraging Avaya’s Inside Sales Team to uncover new opportunities Delivered 159% more BANT qualified leads this year: 13,996 in FY12 99.5% of all Avayagenerated leads are distributed to partners FY13: Tenets for Success Alignment Teamwork Activity Organizational Alignment John Dilullo Tom Mitchell Americas Sales Global GTM and Enablement Avaya Learning Global Accounts MNC Accounts Major Accounts ! Karl Soderlund Channel AMs Channel SEs Channel Networking Channel Video Distribution Business Development Customer Focused High Touch Account Control with growth in critical customers Recruitment On-boarding and Enablement Cust. Segmentation / White space Avaya Connect Communications Market Focused Broad coverage driving growth in strategic areas NOTE: This will not diminish the channel role in large accounts ! Two Defined Sales Motions Protect & Upgrade the Base Fuel Growth New Customers Existing Avaya Footprint • New Technologies to Existing Customers Focus on: – – – – – Selling newer technologies to existing customers (e.g. Data, Video) Hunting for new sites or competitive sites within existing customers (e.g. US Deal Reg) Hunting for new customers (e.g. US New Customer Incentive) Selling higher margin technologies to existing and new customers (e.g. US Grow Right) Selling retail maintenance services in the US (e.g. US maintenance commissions) A Territory Model for Teamwork Future State Current State Partner Avaya Cam Avaya Partner Customer Customer Current State TAMs focused strongly on End Users Partners used for pure fulfillment – not leverage Avaya Channel CAM used for deal administration Non-existent TAM-to-Partner alignment – other than deal processing. TAMs NOT involved in Partner recruitment or enablement Avaya TAM TAM Avaya Cam Desired Objectives TAMs are “quarterback” for territory TAMs leverage CAMs and Partners for demand generation and customer coverage TAM accountable for territory growth – with and through legacy and new partners Increased Activity = Increased Results Looking Forward: What You Can Expect Where We Are Winning . . . How We Are Winning . . . IP Office Radvision Networking IP Office New York Not-for-Profit Publishing Company •$97,000 deal @ 40% Margin •$165,000 deal @ 50% Margin Opportunity: Customer looking to replace their legacy Definity system. The CIO wanted to compare the 3 alternatives: Avaya, Cisco and Shoretel. They issued a Mini RFP asking all 3 companies for an overview and demonstration. Opportunity: Customer had a CM4 solution including Intuity that was end of lease on a 5 year FMV lease. Existing solution headquartered in NYC with an LSP in Los Angeles. Total station count is 350 stations and interested in OneX Mobile. Customer Evaluation: - Cisco was eliminated due to pricing (double) TCO - Shoretel brought in their demo kit & impressed the client -Avaya’s presentation was done at the EBC. client was very impressed with IPO Server Edition and how all of the client’s requirements were covered. Financials: End of lease buyout from AFS was approximately $120,000; Upgrade to CM6 and Aura Messaging was an additional $120,000. Total investment to keep the CM was $240,000 plus annual Support Advantage. Avaya Differentiators: Conferencing capability built in (big leg up over Shoretel) Avaya’s Mobility and BYOD Solutions (One-X, Soft phone, Flare) Pricing: Leveraging Avaya promotions (777), the Avaya proposal 20% less Decision: Feature functionality with conferencing and the price solidified the client’s decision to purchase Avaya. Proposal: Partner positioned an IPO with all new endpoints. In addition, maintenance on the IPO was 40% less per year and OneX Mobile included presence making it more feature rich on IPO than CM. Decision: This was a finance driven decision The IPO closed in two weeks. Radvision Video Collaboration Win: Mid Size Regional Bank Revenue: ~$218,000+ Install (AV Integration) & Services Competition: Cisco/TAA (Incumbent video) Channel : Avaya Connect Partner Customer Business Issues Pre-Sale Installed Environment AvayaRadvision & Partner Solution Why We Won: •Understanding Business Drivers. Consulting to identify the key business processes coupled with solution selling, and a compelling TCO. Examples include: “Ask and Expert” virtual support, B2B simplicity, Board of Director and Leadership meeting support. •Vendor Agnostic Approach. Our ability to present an “end to end” solution with multi-vendor interoperability to leverage installed assets with goal to upgrade an additional 17 Branch locations in 2013. •Pricing/Solution Strategy. Bundled strategy with management (iView) solution to support mixed environment and be supported on VM WARE environment. This coupled with Scopia Mobile and Net Sense forced competitors hand while exposing high cost of sale for similar offering . Our Dynamic (4:1 ) MCU port support for Scopia illustrated scale of offering as Bank grows while managing bandwidth assets where possible.. Achieved increased productivity , ease of business while increasing customer service. Networking $800 $700 $600 $500 $400 $300 $200 $100 $- CM End to End CM Core CM IPO Edge IP Office Mutual Expectations My Commitment to You •Listen •Engage •Take Action My Ask of You •Don’t accept the status quo •Drive for growth •Hold each other accountable