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Avaya has big plans for the future

Avaya has followed a meandering path over its two decades of existence. The company was formed in 2000, as a spin off from Lucent Technologies, which itself had been spun off from AT&T in 1995.

For much of its history, Avaya has had a primary focus on unified communications technologies, though it also had a stretch of time where it was active in the networking space. Avaya acquired Nortel Enterprise Solutions in 2009 for $900 million, but largely exited the networking business in 2017 when it sold the business unit to Extreme Networks for $100 million.

Avaya has also gone back and forth in the public markets and financial solvency. The company was public from 2000 to 2007, when it was taken private in a $8.2 billion deal led by Silver Lake Partners and TPG Capital. In January 2017, the company declared bankruptcy for the first time and went public again at the end of year.

Over the last six years the company has focused on building out its cloud contact center and collaboration capabilities. Avaya’s current portfolio includes its Experience Platform contact center technology as well as the its Cloud Office communication and collaboration suite. Avaya has a strategic partnership with RingCentral to develop and sell the Cloud Office service.

Recently, Avaya Holdings announced that it had entered into Chapter 11 bankruptcy protection as the company aims to restructure its financial obligations. Yesterday, the New York Stock Exchange (NYSE) announced it was starting proceedings to delist Avaya Holdings common stock, which had been trading under the ticker symbol AVYA.

Avaya claims that its financial restructuring will reduce the company’s debt down to approximately $800 million, which would represent a 75% reduction from the current debt load of $3.4 billion.

The move doesn’t come as a complete surprise as the company warned in August that its financial results for the third quarter of 2022 were not going to meet expectations. Avaya brought in new CEO Alan Masarek in July 2022, just ahead of its earnings disclosure, in a bid to help transform the Avaya business model.

“I joined Avaya to help unlock the power of its iconic brand, global customer footprint, massive partner ecosystem, large-scale communications deployments, and outstanding team,” Masarek said in a release announcing the bankruptcy filing. “Strengthening Avaya’s capital structure is a critical step to fully realize our transformation, and we are excited to move ahead as a well-capitalized company with one of the strongest balance sheets in our industry that includes substantial cash to invest in our own success.”

Avaya is simply clearing its debt and removing distractions from their path to focus on the future of communication with its cloud office service.

Cloud Office Communications is a service that allows you to make calls over the internet (Cloud calling or Voice over Internet Protocol (VoIP)). The cloud is where businesses pull up information and use the services from a VoIP server. Additionally, the cloud turns any device with internet access into a potential phone.

Colorado Telephone and Cable (CTAC) is a proud Avaya partner and will continue to provide top quality support on all past current and future products.

5 reasons your business needs a new phone system

1. What you’re using is either obsolete or near-obsolete

You might think your phone system will last forever. Oh, it’ll probably need some tweaking over time. But it should hold out for as long as you need it…

Until it doesn’t. Suddenly, the problems become much more difficult to fix, and parts needed for the fix are harder to come by. Soon, you’ll find it much cheaper to just abandon it.

That’s because the system is on its way to becoming obsolete.

There are familiar signs that’ll tell you if your system is going down this route:

  • Your provider isn’t offering the same system to new customers anymore
  • The parts you need to fix your system aren’t available
  • New trends that could replace (or have already replaced) the system being used by your team are emerging

There are more signs that point to your system going obsolete, but these are the most common red flags blaring “Time to get a new phone.”

2. It’s not reliable

A lot of businesses choose their communication tools based on price, thinking it gives them the most value because they don’t need to spend too much. It doesn’t take long before they find out the reason why the price is cheap:  the service is cheap, too.

When your team is spending more time trying to get your phone system to work than they do actually making money, it’s a big neon sign saying you need a new communications solution. Ideally, one that will actually help you become more productive instead of getting in the way of your daily tasks.

3. It can’t do what you need anymore

Is your phone system able to provide the features and functionalities you need?

You’d think this is an easy question to answer, but it’s not. Sometimes, businesses don’t know they need a certain functionality because they don’t even know it exists. Or even if they do know about it, they don’t think they can afford it given their limited resources.

For example, if your company’s been using a traditional human receptionist through a multi-line system, would you actually recognize that your business could be better off with an auto-attendant that automatically answers and routes all your incoming calls?

To have a better idea of what you need and what you may be missing out on, you have to make an honest assessment of your phone situation by:

  • Reviewing the features and functions you need based on your business goals
  • Matching it with the available features and functionalities of different communications solution providers in the market
  • Comparing your findings to what your current provider is delivering to you

It should paint a clearer picture of what you’re missing out on. You might be surprised to find what’s available to you at your price point.

4. It has a limited capacity

For a growing business, a phone system that’s not scalable can become a liability instead of an asset. Fast.

Most of the traditional systems require complex cabling and installations just to add one more user. Can you imagine how much harder it’d be if your business needed to expand to another location? Will you have to install a new and separate system for the new office?

That’s something you should consider if you manage a small business, even if you’re not at that point yet. While your current phone service may be working for you (in a limited capacity), you should consider its ability to adjust to the needs of your business as it grows and goes through changes. A lot of the time, what works right now may not work in the (near) future.

5. It doesn’t have good customer service when you need help

When evaluating your current phone system provider, ask yourself these questions:

  • How far has your current communications solutions provider gone to provide you with the best service?
  • Did they help you with installing and implementing their service for your company?
  • Are they readily available to help you when you have questions, concerns, and complaints about the service?
  • Do they know the history of your account and have knowledge of how you use their phone service?