Avaya and RingCentral Announce Strategic Partnership Closing
The most talked-about partnership this year
Avaya and RingCentral have announced the closing of their previously announced strategic partnership, officially launching the start of a new era for the two brands.
Together, Avaya and RingCentral will be introducing a new solution for their customers, the “Avaya Cloud Office by RingCentral“. This solution will act as the flagship UCaaS offering sold and marketed by the Avaya team. The Avaya Cloud Office solution combines the leading UCaaS platform from RingCentral with the technology available from Avaya, as well as migration and services ability. The new offering creates a highly compelling and differentiated UCaaS experience.
Avaya and RingCentral are planning to launch the new Avaya Cloud Office within the first quarter of the calendar year for 2020.
A Game-Changing Industry Partnership
The introduction of Avaya Cloud Office and the game-changing partnership between Avaya and RingCentral has already generated some real excitement within the marketplace. Avaya CEO and President, Jim Chirico, noted that Avaya’s Cloud Office solution is a continuation of the company’s strategy to become a leading cloud-first company. Avaya believes that adding the new UCaaS solution to its portfolio will be a key differentiator that allows it to provide customers with a seamless journey to communications in the cloud.
Together with the global partner community that Avaya has long-celebrated, Avaya is excited to work with RingCentral on bringing a unique new offering to the market that builds on the complementary strengths that the two businesses have.
RingCentral’s Chairman, Founder, and CEO, Vlad Shmunis, also commented on the recent closure of the partnership. He noted that as a leader in the cloud communications landscape, RingCentral is focused on bringing the benefits of the cloud to as many enterprise customers as possible.
The strategic partnership with Avaya accelerates the transition of one of the world’s largest unified communications install bases into the cloud. RingCentral is excited to see the long-term benefits of the partnership coming into fruition.
A Huge Win for Avaya and RingCentral
The Vice President and Senior Fellow for Information and Communication Technologies at Frost and Sullivan, Elka Popova, said that the strategic partnership is a winning combination for both brands. Going forward, the combined offering has the potential to significantly distribute the business communications industry, particularly as Avaya’s move to the cloud continues to accelerate. Popova believes that careful consideration clearly went into the design for the partnership framework, ensuring maximum benefits for partners, customers, Avaya and RingCentral.
RingCentral will be contributing around $500 million to the partnership with Avaya, as well as a $125 million investment of 3% redeemable preferred equity, convertible at $16 per share and an advance of $75 million in stock for future payments and licensing rights.