Back in January, Avaya filed for Chapter 11 bankruptcy. When asked why, their Corporate Treasure, John Sullivan explained that after examining their debt “we decided it was a critical next step in our transformation from a hardware company to a software and services company and the best path forward for our customers, partners and employees.”
Guys…Phones are hardware!
They shed some significant assets in March with the sale of their networking business to Extreme Networks but basically, it has been all quite in the newsroom regarding their aforementioned transformation. That is until May 31, when they announced their foray into a NEW market. And what is that exciting new venture…SIP Phones! YAY! Psst…Guys…Phones are hardware, not “software and services.”
Avaya + BroadSoft?
What is even more odd is that the press release says that these phones are being offered in collaboration with and tested for interoperability with BroadSoft. And BroadSoft has had a campaign in place for a number of months offering Avaya customers a smooth migration from premise-based solutions to a cloud solution. Is this just BroadSoft taking advantage of Avaya’s lack of foresight? Is Avaya just trying to hold on to any piece of the business they can? Perhaps this a prelude to these two companies eventually becoming one.
Whatever the real plan or outcome is, Avaya was late to the game realizing that premise-based systems are going away. Many other hardware companies are in the same boat, creating a huge opportunity for agents and white label resellers of hosted services. All of these companies customers are (or soon will be) available as premise systems age into obsolescence. Companies need a communications system and hosted is the way of the future.