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Avaya and XO Communications Collaborate To Provide Managed Servicesto Small and Medium-Sized Businesses


Avaya Inc. and XO Communications, Inc. announced an agreement tocollaborate in offering a suite of communications solutions thatcombine applications, hardware, and services for small andmedium-sized businesses.Avaya Inc. (NYSE: AV) and XO Communications, Inc. (OTCBB: XOCM.OB) today announced an agreement to collaborate in offering a suite of communications solutions that combine applications, hardware, and services for small and medium-sized businesses.

The companies will offer managed solutions that simplify the communications services packages small businesses use through seamless, integrated offerings of converged systems and network services. XO Communications is offering the solutions through XO One, the company's managed services pision, which specializes in providing bundled solutions that combine customer premise equipment, networking and professional services.

XO will bundle Avaya solutions with XO network services, providing a single point of contact for customers from the time of installation to ongoing customer service and billing. Multi-site customers will be able to benefit from the efficiency and convenience of having a single provider and bill for their entire communications services and systems across all locations.

According to recent research from In-Stat (Voice Box: IP Telephony and LAN Convergence in the US Business Market, Part One, Two and Three, December 2004), more than thirty percent of firms, even those with less than 100 employees, are interested in or are planning to adopt IP telephony solutions in 2005. The research also showed that the need for IP voice by businesses varies greatly, and that there is a growing need for "small office" solutions. Together, Avaya and XO will be able to meet this need by offering a suite of solutions that are designed to address the perse requirements of small businesses.

Under the agreement, XO Communications will offer two suites of Avaya software and systems to small and medium-sized businesses. XO is reselling Avaya Global Services for all CPE installation activities, and will also refer services opportunities directly to Avaya Global Services on a commission-based model. Avaya Global Services is responsible for executing network assessment, design and implementation services, and will support all functions on XO installations of Avaya's solutions for small and medium businesses, including:

  • Avaya IP Office, an "all-in-one" office communication solution that brings together voice, data and communications applications for small and mid-sized businesses and includes applications such as mobility, customer contact centers, and conferencing features.
  • Avaya PARTNER Advanced Communications System, a key system with advanced telephony features such as email and voice mail access and management from a single PC, and dedicated Internet access for connectivity.

"The Avaya solutions are an excellent complement to XO Communications network services and our XO One managed services group," said Vince Margiotta, vice president and general manager of XO One. "The Avaya IP Office and PARTNER key system delivered through a managed solution are unique in the industry and meets the needs of smaller firms as well as those businesses that are looking to reduce their risk as they migrate to a converged voice and data platform."

"Avaya's and XO's collaboration will enable more small and medium businesses throughout the United States to benefit from converged voice and data networks and advanced IP telephony applications and embed intelligent communications into the heart of their businesses," said Pat Hume, group vice president, Small and Medium Business Solutions, Avaya.

Destination Center (, an international marketing and sales firm that specializes in multi-media marketing, contacted XO when it needed a communication solution for its new headquarters location in Orlando, Florida. "We were moving to a larger facility, and were also becoming financially independent at the same time," said Mike Furtado, chief technical officer, Destination Center. "Gone were the 'deep pockets' of our financial investor, so we needed a solution that would enable us to continue providing top notch service, at a price point we could afford."

Avaya IP Office with 60 digital Avaya telephones, fit Destination Center's requirements perfectly. "XO manages the entire solution," Furtado said, "and enabled us to get a system in place and up and running without a huge capital investment staring us in the face. We have more than 30 sales agents and support personnel who rely on the IP Office's call center capability to the flow of calls and serve our clients, and we haven't had a moment of downtime since we began operation in January. That's a huge relief."

Under the agreement between XO and Avaya, XO sales teams manage the sales effort, and both Avaya and XO provide installation and support for customer premise systems and network services. Avaya Global Services, the company's worldwide services organization, is responsible for customized installation and configuration support through the company's 24-hour Network Operations Centers and 13 Technical Centers. Avaya distributors will be responsible for system inventory and logistics.

About XO Communications
XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit

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 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:

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