Avaya Reports $682 Million in Revenue, Fueled by Software

Latest financials revealed by Avaya

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Avaya Revenue Q1 Q2 2020
Unified CommunicationsInsights

Published: May 28, 2020

Ian Taylor Editor

Ian Taylor

Editor

Over the past few years Avaya’s undergone a lot of transformation. The company’s since dipped its toes deeper into the SaaS pool, and today, Avaya boasts successful UCaaS and CCaaS offerings. Avaya used to be popular among legacy communication users, so it’s had to play catch up in the cloud space during that timeframe.

This year, Avaya launched Avaya Cloud Office, a public UCaaS offering in the U.S., later telling me the software solution would soon make its way to the U.K., in June 2020. The solution’s sales and support in the U.S., handled by master agents Avant, Intelisys, Jenne, Synnex, and Telarus, which Avaya says to-date has over 1,700 agents trained to sell ACO, along with the entire RingCentral sales force.

“We’re building more momentum with the launch of Avaya Cloud Office in Australia, Canada, and the U.K. later this quarter, which is indicative of how we plan to continue moving at cloud speed”

Today we face a significant number of global challenges, one of the most pressing – the novel Coronavirus. Yet the UC&C vendor’s established itself as a player in the newfound space in time it finds itself. For unified communications and collaboration tool developers, contact center solutions developers, and the entire remote workforce, COVID-19’s had inverse impacts, with many reporting some of the busiest days of their careers.

Tools like the ones Avaya develops have experienced extensive upticks in usage during COVID-19. Over a two-month period, a company spokesperson told me, Avaya hosted over two million remote workers around the globe, adding – it’s experienced ‘Demonstrable and continues growth in the cloud.’

Avaya also expanded its client roster, scoring 1,200 new customers. I’m told, the results Avaya delivered during its first-two quarters were driven by its plan to address the growing demand for digital consumption models, cloud telephony, and collaboration tools.

“During the last two quarters, we brought dozens of new offerings and capabilities to market – a ‘Breadth and depth’ of new solutions unique to Avaya”

Avaya introduced a new subscription model in the COVID-19 area, and the consumption-based model’s generated a lot of value for the UC vendor, one hundred million dollars in six months to be exact. Avaya subscriptions rose by almost 100 percent quarter-over-quarter, as a greater demand for flexible cloud consumption models advances. The vendor delivers automatic upgrades and bundles improved functionalities into a single contract, which plays a leading role in the model’s enterprise appeal.

Launching Avaya Spaces gave another necessary boost to the unified communications and collaboration vendor during Q1 and Q2. I’m told, ‘Avaya Spaces’ usage rose more than 2,500 percent through the end of April and continues to grow. ‘Spaces’ is a pure cloud collaboration tool that extends both scale and security.

“Security extends to customer data,” a spokesperson for the company told me in a statement, “Which is not sold and there is no notion of pop-up ads, and our technology combines the best of cloud-based video, with voice, collaboration, along with team room capabilities.” In April, Avaya declared its ‘Spaces’ collaboration app would stay free during the pandemic, as have countless others in the unified communications, collaboration, and video conferencing space.

 

Customer ExperienceDigital TransformationFuture of WorkHybrid WorkMobilitySecurity and ComplianceUCaaSUser Experience
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