Avaya Shares With Partners Its Services Growth Strategy

AVAYA EXECUTIVE PARTNER SUMMIT — Avaya executive Todd Johnstone on Tuesday shared the company’s strategy for partners to ensure continued growth in the services space.

Avaya’s 2,400 partners in the Americas account for the majority of the company’s revenue, with partners accounting for $800 million in support services revenue under contract.

Avaya's Todd JohnstoneJohnstone, vice president of Avaya Services, addressed partners during Avaya’s Executive Partner Forum, being held this week in San Diego. Hundreds of Avaya’s 10,500 active partners are participating in the forum.

“The opportunity is huge,” Johnstone said. “How can we best serve customers in this hyperconnected world? Uptime is not an option anymore, customers and consumers take it as a given.”

Avaya is rapidly transforming into a software and services company. Revenue from software and services has grown from 6 percent in 2007 to 72 percent today.{ad}

In the current environment, a single defect could cause a major crisis, and customers will “just stop using a service and go someplace else,” Johnstone said.

Avaya’s services strategy involves: moving away from reactive to proactive; analyzing, identifying and addressing hazardous conditions preemptively; inspecting services for possible issues; helping to optimize services; and improving performance, he said.

Partners need to focus on getting their clients to update their equipment because it’s becoming increasingly difficult to service customers with older systems, Johnstone said.

“Please evolve your approach, your approach to services, and we will grow together,” he said. “If we capture this opportunity and really move up the continuum together, we’ll grow together.”

On Monday, Pierre-Paul Allard, Avaya’s senior vice president of worldwide sales and president of global field operations, said the company hasn’t been “as good a partner as we should have been, but we’re going to change that.”

Doug Lang, Arrow Systems Integration’s senior vice president of business operations, said relationships suffered from consolidation among larger partners and changes taking place within Avaya. In addition, partners not moving ahead and keeping up with technology have been causing issues within Avaya’s partner ecosystem, he said.

“The leadership in place now took it seriously and took action, and I’m excited about it,” he said.

Also Tuesday, Gary Barnett, Avaya’s senior vice president and general manager of engagement solutions, told partners that in the last 90 to 100 days, the company has started to see transactions close in excess of $1 million just for its Engagement Development Platform (EDP). Every $1 of technology is generating $10 in services, he said.

In addition, Avaya will be rolling out its Snapp Store, which will offer snap-ins for the EDP. Partners will be able to purchase snap-ins from Avaya to make available to their customers, or put their own snap-ins in the store to make them available to any engagement platform, Barnett said.

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