Avaya has reported buoyant trading figures driven by the development of its cloud business.
Sales for the quarter ending 31 December 2020 climbed four per cent year on year to $743m.
Cloud revenue equated to 34 per cent of the total figure ($252.6m), up from 18 per cent a year ago, while annualised recurring revenue for the vendor’s OneCloud comms ecosystem rocketed 38 per cent sequentially to $262m.
Jim Chirico, CEO at Avaya, credited the vendor’s growing cloud arm for the growth across the board.
“We have worked hard and structurally improved the business on a number of fronts and it shows in our numbers,” he said on an earnings call with investors.
“We've executed on a series of important initiatives and focused our efforts, time and investments to redefine Avaya as a cloud company"
“This is remarkable progress in just one year and [the cloud business] remains on track to be a $1bn business by year-end - further proof that we are on the right trajectory.”
Chirico highlighted the number of large contracts that Avaya won in the quarter. He said the vendor signed 119 deals with a value greater than $1m - 14 of which were greater than $5m; six were greater than $10m; and three were greater than $25m.
The quarter also saw Avaya sign over 1,600 new logos, “displacing a significant number of competitors,” Chirico added.
Avaya claims to have sold around $565m total contract value in subscriptions.
On Cloud Office, it said that the number of customers doubled in the last quarter alone. Avaya Cloud Office by RingCentral launched last year.
