Avaya’s Subscription Model is ‘Booming’

Moshe Beauford

The model's become the preferred way for its customers to do business

Avaya Insights
Avaya’s Subscription Model is ‘Booming’

A McKinsey survey of IT decision-makers revealed 82 percent of enterprise leaders prefer to buy on-premises software through a subscription. The same McKinsey study further found that 90 percent of enterprises are transitioning to, or considering migrating to, subscription models. “The reasons for this are not only financial, Steve Brock, Director Avaya Subscription Marketing, told UC Today in a recent interview.

The Avaya Subscription consumption model made its debut before millions of workers were forced to go remote and Brock said it’s been a major driver in helping organizations enable remote workers and, by extension, business continuity. The investments required for these systems haven’t been too hard to swallow on a subscription basis, and they’ve created ‘genuine improvements in companies’ communication and collaboration abilities. “They want to innovate when they have needs, not only when they have a budget,” Brock added.

Steve Brock

Steve Brock

Continuing his train of thought, Brock said that Avaya customers use the new model to “modernize communications – not only to deliver secure remote worker communications but also to improve their customer experiences with additional capabilities such as customer self-service and journey mapping.”

Avaya subscriptions rose by almost 100 percent quarter-over-quarter, according to Avaya’s recent financial filings. Customers are also increasingly concerned about business continuity, Brock stressed. He maintains Avaya’s subscription model is a great move for businesses that want to keep their communications current to avoid potential disruption associated with using outdated software and to increase security.

“Avaya Subscription ensures customers always have the latest software and devices by replacing large up-front costs with smaller monthly or annual payments,” he said, adding:

“Since Avaya Subscription uses the same pricing model for cloud services – customers can add relevant features as needed, an important step as they continue their journey forward into the cloud”

We now live in a new reality, one with a new and unusual set of challenges for businesses. We live in the age of hybrid cloud communications, and we’ve seen years’ worth of digital transformation take place in a matter of months. According to Brock, the subscription model is a good fit for the fast-paced rate of change hybrid cloud environments are experiencing.

Avaya devices are too included in Avaya Subscription. Brock highlighted one offering, in particular – the new Avaya Spaces Room app, which works with the Avaya Collaboration Unit CU360 enabling an all-in-one large-screen meeting option for offices and home offices. The solution furthermore lends the use of features like immediate entry, which lets users point their mobile devices at the screen to join meetings.

Avaya customers can join from embedded calendar invites, as well. There are even meeting recordings for Avaya Spaces and Avaya Subscription Workplace video meetings, along with other video conferencing applications like Zoom. “This is an example of how Avaya is working to improve the employee experience – and how customers are using Avaya Subscription as the vehicle to do just that,” Brock said.

I’d be negligent if I didn’t mention Avaya’s world-class security, which its subscription packages are all backed by. Coronavirus has made doing everyday business more complicated, and Avaya wants to ease this burden, Brock told me. He summed things up by telling me, customers could stretch user and agent payments by 20 percent at no extra charge.

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