Interview Synopsis

Avaya-Ringcentral partnership

  • Multi Asset
  • TMT
  • North America

Almost two years after Avaya’s emergence from bankruptcy, Third Bridge Forum interviewed a former SVP and general manager at the company to see how its situation has changed following a recent partnership and what it still needs to do to survive. 

The Future for Avaya Following RingCentral Partnership

Despite its relative success in global markets, US-based Avaya had failed to innovate at the same rate as many of its competitors, according to the former executive. One of the contingents within its debt-for-equity swap to bring it out of bankruptcy at the end of 2017 was a better focus on bringing its offerings in line – or ahead – with others, recouping market share and revenue. 

The former executive said Avaya had also been fighting on “too many fronts”, vying for customers with products that did not lead the market, and, therefore, failing to bring in enough customers. 

Its partnership in April 2019 with RingCentral was key to this drive towards innovation, allowing the companies to offer a complementary service. Directors of the company had conceded that some sort of partnership was inevitable, so it would be better to be open to change rather than reluctant. 

To get the company back on a growth trajectory, Avaya needs to bring its customers a full communications package, which nudges them towards technologically new offerings rather than keeping them on traditional plans. 

Although the company has not invested heavily in these new areas, the specialist believes its research and development budgets are now set to increase, as it sees this as a way to regain and retain market share. 

Central to this is Avaya’s legacy book of clients – historically this sector has relatively good loyalty – that it has started to switch over from existing, traditional contracts to take on new cloud-based ones. The expert said it would be easier to flip these customers than build up a new base, given its knowledge of the existing customers’ needs. 

Another advantage for Avaya is many of its smaller customers’ reluctance to engage with the internet giants that are competing in this space. But what Avaya has to do now is compete at the same product and service level. 

To access all the human insights from Third Bridge’s Avaya-Ringcentral Partnership Interview, click below to view the full transcript. 

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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