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Avaya Launches Service Provider-Delivered Solutions

10-25-2004

Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services, today announced the availability of new communications solutions that service providers will be able to sell to business customers.

Avaya Inc. (NYSE:AV), a leading global provider of business communications software, systems and services, today announced the availability of new communications solutions that service providers will be able to sell to business customers. Avaya Service Provider-Delivered Solutions for IP telephony and contact centers will significantly expand the choices businesses have in how they implement these technologies  offering them a simple, cost-effective way to upgrade their communications capabilities.

The Avaya solutions will enable service providers to offer their business customers IP telephony and contact center applications through a new, usage-based monthly fee. As a result, mid-sized companies will have easier access to the same leading communications solutions used by many of the world's largest companies with no upfront capital investment. Service providers in turn will be able to create a new, recurring revenue stream and drive additional traffic onto their IP network.

Separately, Avaya and Philippines Long Distance Telephone Company (PSE: TEL) (NYSE: PHI) announced a three-year agreement through which PLDT will market the Hosted Contact Center solution from Avaya to small and medium-sized enterprises in the Philippine market. The company is launching a new service called PLDT On-Call that offers Avaya-powered contact center capabilities, hosted in PLDT's data center and delivered over its network.

Avaya is the global market leader for both contact centers and IP telephony, which is software-based technology that transmits voice packets as data over a computer network in a similar manner as e-mail.1 The company's new offers address a market for services "hosted" by carriers that is estimated by market research firm TSS Partners to grow from around $1 billion in 2004 to nearly $17 billion by 2008.2

"Many mid-market businesses are seeking greater flexibility and want to minimize risks in migrating to IP telephony solutions and applications," said Eric Schmiedeke, CEO of global research and consulting firm InfoTech. "Our research indicates strong demand for benefits presented by hosted solutions, including the ability to scale easily, upgrade capabilities on demand, pay as they go, minimize implementation and operational risks, and potentially lower total cost of ownership by avoiding internal support costs and complexities. The introduction of hosted solutions provides customers new affordable choices, previously not available, for more quickly incorporating IP telephony and contact centers into their operations."

"Avaya is focused on serving the unique communications needs of the enterprise customer," said Mike Thurk, group vice president, Enterprise Communications Group, Avaya. "With the transition to IP telephony accelerating, companies are looking for ways to integrate the business benefits of IP communications into their operations. This new offer gives mid-sized customers another way to take advantage of this of this technology transition. At the same time we can offer service providers new opportunities to generate revenue."

Avaya provides end-to-end support and management tools for its hosted IP telephony and contact center solutions that include building and testing at Avaya Labs and at service provider data centers to validate interoperability in the carrier environment. Avaya also supports these new solutions with new polling and rating tools developed specifically for the service provider market. The company also provides network assessment and implementation support for service providers and their customers through Avaya Global Services, which is part of Avaya's hosted offers. Avaya Global Services has a team of more than 7,000 specialists experienced in the design, deployment, protection, maintenance and management of enterprise communications around the world.

Avaya now serves the enterprise market with on-premise and service provider conferencing solutions, including applications for advanced services, such as integration with other productivity software suites, sophisticated operator support functions and wireless capabilities. The new Avaya Service Provider Delivered Solutions complement the company's recent acquisition of Spectel, the world leader in audio conferencing solutions. Spectel has a large customer base of service providers.

Background on Avaya Service Provider-Delivered Solutions
Avaya Service Provider-Delivered Solutions are powered by the company's IP-based MultiVantage Communications Applications, which encompass contact centers, messaging, unified communication, and Avaya Communication Manager IP telephony software. Avaya hosted solutions now run on IBM® BladeCenter servers that are interoperable with carrier networks.

Avaya Service-Provider Delivered IP Telephony Solutions: Avaya Hosted IP Telephony offers provide businesses with as few as 100 users access to the 700-plus features of Avaya Communication Manager IP telephony software. Using IP telephony services, businesses can easily extend main office functionality to branch offices, home offices, and mobile workers, improving collaboration across a distributed enterprise.

Avaya Service Provider-Delivered Contact Center Services: Avaya Hosted Contact Center offers are based on the same Avaya Customer Interaction Suite applications used in large contact centers around the world. Supporting as few as 30 agent stations, they enable businesses to select the precise level of functionality they need to help them grow and compete. Available services span the breadth of the Avaya Customer Interaction Suite product line and include skills-based call routing, network routing, multichannel contact management, natural language interactive voice response technology and a complete set of customer relationship management applications. Additionally, Avaya hosted contact centers feature call recording and a suite of real-time and historical reporting applications for quality assurance.

IBM BladeCenter Systems: Avaya Service Provider-Delivered Solutions are comprised of Avaya's standards-based media servers and gateways, as well IBM eServer BladeCenter and BladeCenter T systems that are fully integrated with Avaya IP telephony and contact center software and can accommodate the heavy traffic loads common in service provider networks. By integrating its open, standards-based service provider-delivered solutions onto the IBM BladeCenter platform, Avaya is able to provide its service provider partners with communications solutions that are completely interoperable with their existing network environments.

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including over 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications  and distinguished by comprehensive worldwide services  Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com

1 Synergy Research Group, Q2, 2004.
2 April 4, 2004 Research by Technology Systems Solutions (TSS) Partners.

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