This week Avaya held its reseller event, the Avaya Executive Partner Forum, in Cancun, Mexico. During the event the company highlighted some positive changes to its channel program and addressed some of the more controversial issues head on. Considering the number of new products that have come out of Avaya over the past couple of years, including new versions of Aura, IP Office, video, VSP 9000 to support the VENA architecture, wireless, collaboration pod, I really don’t believe product is an issue for Avaya anymore. The company must execute on its channel plans for growth, which will put it in a better position for an IPO in the future.
The most pressing issue Avaya and its channel partners face is growing network share. With all due respect to the excitement around video, cloud services and other hot markets, good old fashion networking is the key. If you look at the big buckets of IT spending, Avaya already owns about a quarter of the telephony share (give or take, depending on whose numbers you use), so gaining significant share there isn’t likely. Looking at the exciting video market, that market isn’t more than a couple of billion if you include infrastructure, end points and related items. If Avaya somehow miraculously took 20% share in that market, that’s equivalent to about $300M-$400M in revenue. However, just 5% of the $20 billion Ethernet switch market is $1 billion in revenue.