NewsUC&C9 Mar 2017 · 3 min read

Cloud Wars: Avaya Strikes back with ScanSource on its side

There's no doubt that Avaya is a tad late to the UCaaS party, but can ScanSource help turn it around for Avaya's Cloud Communications revenues?

Ian Taylor

Avaya has continued its fight back from Chapter 11 bankruptcy with the European wholesale roll out of a new hybrid cloud platform.

The Californian unified comms vendor, which filed for bankruptcy protection under US law in January after amassing debts of $6.3 billion, as signed up key channel partner ScanSource to handle distribution of its new Powered by Avaya offering in the EU.

'Powered by Avaya' is a new software solution for channel partners, providing a cost effective platform to offer cloud ready contact centre and Unified Communications services to customers. The target market is mid sized organisations, and the platform can also be run on end users own data centres, providing a flexible option for cloud migration.

A few select resellers have already been marketing Powered by Avaya in the UK. But the entrance of ScanSource as wholesale distributor marks a full strategic roll out and a bid to gain traction in the cloud communications market.

The swift action taken by Avaya to bring its latest cloud product to market hot on the heels of its well publicised financial troubles is not without significance. Avaya’s difficulties have been attributed in some corners to a failure to take the emergence of cloud technologies seriously, sticking stubbornly to on premises products while rivals profited from rising demand for cloud and hybrid solutions.

This has even erupted into an open dogfight for Avaya’s customers. In a letter eventually shared on LinkedIn, RingCentral took the brazen step of writing to Avaya customers, telling them exactly why Avaya’s products didn’t suit the mobile demands of the modern workplace. In response, Avaya is seeking court approval to grant bonuses of $3.7 million to executives if they stop rivals poaching their customers.

As unedifying as all this seems, it does appear that Avaya is scrambling for lost time to get a foothold in the UCaaS market. UK managing director Ioan MacRae has conceded that the company is “a year to 18 months” behind Mitel with a mid-market cloud product, but denies it has missed the boat.

MacRae said: "The mid-market sector is the engine room of the UK economy, but is all too-often overlooked, with vendors either focusing on larger enterprise customers, or providing solutions that don't deliver the scalability, resiliency, and flexibility mid-market customers are looking for.

"Powered by Avaya' will give growing, mid-sized companies access to a robust business-grade cloud option with their UC, CC and video communications for the first time, with the same reliability and security expected by end-users and synonymous with the Avaya brand."

UC Today Opinion

Although Avaya’s financial difficulties are likely to be more complicated than failing to get in on the cloud market earlier, there is no doubt that it is late to the UCaaS party. However, the company seems to have a clear strategy for turning the ship around and is taking decisive action. In ScanSource, it has a powerful ally in the channel which will count for plenty in gaining traction for its new hybrid cloud platform.

What do you think? Is Avaya doing the right things to make it out of the woods in tact, or has the horse already bolted? Feel free to share your opinion in the comments section below, and remember to share this article with friends.

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