Is Avaya the new Nortel?

avayaEveryone is talking about the Avaya Bankruptcy and what it means for the future. No Jitter had a very interesting piece on the bankruptcy that we thought was worth sharing: Avaya Bankruptcy: Good or Bad for Customers?

The author, Phil Edholm, believes that the speed of the bankruptcy process is of great importance. He compares the bankruptcies of Nortel, which was a long and painful process, and that of Aspect, who reached a much quicker conclusion.

Edholm explains that “Chapter 11 is designed to enable continued operations and return to normal business (versus the total liquidation of Chapter 7), creditors have claims to all of a company’s assets and cash. Those claims can prolong the bankruptcy process, and often lead to liquidation, which is what happened in the Nortel case.”

On the other hand, Aspect was able to avoid this by securing the support of creditors and developing a plan before filing.

Reports from Avaya indicate that they do not have a plan and are only beginning the process of negotiations.

With the outlook looking so uncertain, this seems to distract from the essential issue – why did they get into this position in the first place?

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Avaya Files for Chapter 11 Bankruptcy Protection

As you’ve probably already heard, Avaya has filed for Chapter 11 Bankruptcy Protection. This startling fact reminds of us Nortel.

When we first got started, we had to reassure our partners of our financial stability; that we were no Nortel. We have proven this stability through 14 years of growing business.

What will be next for Avaya? Only time will tell.

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Gartner’s 2016 Magic Quadrant for Unified Communications

Gartner’s 2016 Magic Quadrant for Unified Communications is out, but none of the winners are without weaknesses. In summary…

1. Cisco‘s unified communications may be overpriced and confusing. Isn’t the point of unified communications to be streamlined and simple?

2. Microsoft‘s conferencing quality is called into question. At this point, quality should no longer be an issue.

3. Mitel‘s offerings are too limited to support growth. Scalability is key in unified communications.

4. Avaya is focused on a financial plan and refinancing at the moment. Not to mention their offering may not be fully user-friendly.

5. Alcatel-Lucent is glaringly absent in the U.S. market, a center for many other solutions. Keeping up with competition is essential for any company.

6. NEC, on the other hand, is too focused on the Asian market. Unified communications should be a global endeavor.

7. Huawei is yet one more example too focused outside the U.S. and even Europe, presenting challenges to customers in those areas.

8. Unify‘s unified communications solution is still young and needs further development. There is a lot to be said for stability.

9. ShoreTel‘s offerings may be lacking in features. Lack of even one feature is enough to lose deals to competitors.

10. Interactive Intelligence‘s UC conferencing is less comprehensive than some competitors. Conferencing is now an expectation, not an optional bonus.

While it may seem negative to focus on weaknesses, today’s Unified Communications market gives consumers enough options to be picky and critical. There is no reason to settle on a solution that is not 100% satisfactory.

To read more about this, visit CRN’s article Here’s Who Made Gartner’s 2016 Magic Quadrant For Unified Communications.

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