Avaya Pursues Nortel Partners

By Mark Evans | Published: June 1, 2009

Sensing a competitive opportunity, Avaya unveiled today a new program to attract Nortel resellers to the Avaya Business Partner program.

“New Nortel partners joining Avaya will be fast-tracked with programs and incentives to enable them to quickly deliver Avaya’s innovative unified communications and contact center solutions to new small, medium and large businesses around the globe,” Avaya said in a press release.

Todd Abbott, senior vice president and president, Field Operations, said the new program offers Nortel partners the opportunity to add the Avaya product line, including the new Avaya Aura unified communications product, to their portfolios.

“We are taking unified communications and contact center markets into new territory with one of the most innovative, core communications platforms available today,” he said. “This is an opportunity to quickly build a relationship with Avaya and gain new business with customers looking to move their infrastructures to the most advanced architectural model.”

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  • gone2moro

    so is Juniper, Cisco, Alcatel, Erricson, NSN, Huawei, Tellabs, 3COM, etc etc….. they all have programs to rip Nortel.

  • Moose_Chaser

    LOL !

    If these guys are so scary, how come they forced all their employees to take 2 weeks “holidays”, to save money ? Silver Lake private equity is trying to dump them !

    MC

  • vvvv

    The irony is that Don Peterson, ex-Nortel CFO in happier times and a good guy, was the Avaya CEO for many years.

  • TongueInCheek

    Mark, a business question for you. If you were a Nortel reseller with 25% of your business directly tied to Nortel, how quickly would you dump that relationship in favor of doing business with Avaya where you have no market presence and no reference accounts?

    It makes complete sense for Nortel resellers to revisit their business plans and product/solution mix and to add other partners that give them future growth opportunities. However, it takes time and a lot of money investment to be formally certified and capable of delivering complex solutions with a brand new product offering. There has to be some balance over time in order to maintain their core business.

  • gone2moro

    Avaya has no referenceable account's? U live under a rock? Of course they do, but that's not important.

    You should have ended your question at “how quickly would you dump that relationship in favor of doing business”

    Resellers have to hedge their bets with vendors. If I owned one and was a betting man, I wouldn't push or lead with Nortel gear, but I'd sell it if a customer insisted on it. Of course I'm make sure the proper indemnification considerations were in place to limit my liablity.

    But for sure if I had another option to lead with like Avaya, I'd go that route. Until I understood what's is happen with NT. And the longer the knuckleheads take to restructure the more deals will be lost.

  • TongueInCheek

    You missed my point or perhaps my words weren't clear.

    Of course Avaya has some excellent references. However, the brand new Avaya reseller would not have any Avaya references of their own to showcase in the beginning. Resellers don't like it when one of their reseller competitors attempts to use one of their base accounts as a new reseller reference.

  • NortelTragedy

    Are these competitors offering product and services for free to RIP Nortel? Is Avaya or Cisco sucking up the loss to gain marketshare? Otherwise, if I were an enterprise, I wouldn't RIP Nortel and lose the investment I have in the phone system. I'd absolutely be concerned about Nortel and want to consider a contingency plan. But it's not like the system is inoperable or unsupported, forcing me to RIP. Fact is, the hardware is commodity … Avaya, Cisco, and many small companies (esi in Plano, TX) … I would be most concerned about the long-term software support and development in Nortel, and its commitment to the platform. I wouldn't trust anything from Hackney or Zudas, the reason they need to go.

  • less

    You make it sound like upstart Avaya resellers will be ostracized by the established reseller community for (unwritten) breach of ethics.

    Axed employees don't like it when Nortel renegs on their written severance and pension agreements purportedly to build a leaner, more focused Nortel without them.

    Same difference.

  • gone2moro

    agree completly. The NT only reseller is certainly in a difficult situation.

    Another interesting question. IF NT enterprises emerges, would those resellers keep so many eggs in the NT basket? NT now has a decade of poor management, and argueably, criminal behavior. I would think that most resellers are thinking of contingency plans whether NT emerges or goes away.

  • betoX

    tomorrow (tuesday) the sell of enterprise to siemens will be announced
    watch for the news!

  • dljvjbsl

    In regard to reference accounts, wouldn't a primary emphasis of these new Avaya resellers would be to switch their existing Nortel customers to Avaya? They would have their own reference accounts.

    In regard to switching, Avaya seems to be emphasizing UC. This could be done outside of the Nortel box and brought in through CTI. So it would be a form of displacement. Even tally the Nortel sets will be replaced but in the mean time, the value added applications would be Avaya.

    Avaya uses H.248 from a central call manager to control its peripheral media gateways. This would seem to be an ideal situation to gradually replace exisitng vendor (i.e. Nortel) gear

  • protosphere

    “channel partners” ” will receive bonus incentives for every new Avaya customer and product order”

    Not sure if Avaya worded this right, using the terms “bonus incentives”, or did they do this on purpose as a subliminal reminder =) Calling it rebates, rewards program, anything sounds more normal than this.

    Even Nortel called it a “rebate” to switch to them after misleadingly slandering in their Cisco's Tax campaign than a bonus incentive.

    Perhaps I am reading into this too much. Regardless, any partners not looking at alternatives, like their customers, are setting them selves up to share the same fate as Nortel when they disappear.

  • nblog

    Yeah right… heard that one before

  • The psychiatrist

    Axed employees don't like it when Nortel renegs on their written severance and pension agreements purportedly to build a leaner, more focused Nortel without them.

    Ya especially when the same ones who reneged on the severance and pension agreements are also the ones who pushed for $23 million in KEIP money.

  • bankrupt_bob

    Todays low….14 cents (US.)

  • sick_sigma

    I do not know if this is true or not but the rumor du jour now is that Siemens(Gores Group) is about to be formally announced as the stalking horse bidder to purchase Nortel Enterprise.

    Should be in the news in the next couple of days, if true.

  • protosphere

    Unsubstantiated speculation is interpreted as traditional fabrication.

    NoTell never did disclose much and what they have was false and misleading.

    They can sell Enterprise, Carrier, MENS, LG, NGS, name it., and still come up dramatically short enough to make any bonus driven plan hysterically laughable.

    Why on earth would Siemens pay for a mail list of declining customers with a price would be hardly worth the paper work, This would also effect the duration of extending Nortanic's pay incentives to November. (AKA- “robbing the corpse” as they struggle to even liquidate)

    Not that they appear embarrassed or humble enough to burden any shame at this unrepentant point… I can't see ANY sale going through…. but hey I may be wrong huh =)

  • less

    The buzzspeak is as expected, but Avaya sure is moving fast relative to Nortel. At hyperspeed, even. And the speed and flurry ot GMs press releases detailing their turnaround scheme made me downright dizzy:

    http://news.yahoo.com/s/ap/20090601/ap_on_bi_ge…

    “…GM board of directors authorized Chapter 11 with regret… despite the best efforts of so many,” GM Chairman Kresa said. “Today marks a new beginning … The board is confident GM can operate successfully…”

    “Our agreement with the U.S. Treasury… Canada… Ottawa… will create a leaner, quicker more customer and completely product-focused company… more cost competitive…competitive balance sheet,” CEO Henderson . “This new GM will be built from the strongest parts of our business… best brands and products.”

    Same buzzspeak, wholly different sense of urgency have they. So who's next?

    On June 8, Cisco Systems Inc. will replace GM in the Dow Jones industrial average

  • less

    Breach of ethics!

  • broadbandbill

    Not related to this but felt the subject matter was indeed relevant to this blog. Both GM and Nortel are nothing more than symptoms of a system gone awry…–bb
    ———————————————————————————————————
    How Rick Wagoner Lost GM

    GM's ex-CEO threw out the good-governance structure in place when he took over, then made bad decision after bad decision, backed by his rubber-stamp board.

    link to article: http://www.businessweek.com/managing/content/ju…

  • less

    Aye. This sounds all too familiar:

    '[A] revolutionary separating of the CEO and chairman roles (and the consequent addition of truly independent directors) allowed the board to pursue an agenda wrested from management's control.

    Yet these reforms were rolled back under Wagoner. He recombined the chairman and CEO roles, assuming greater board control. He then packed the board with sympathetic voices, including four fallen CEOs from other companies, and ceremonial, nonbusiness figures.

    With the exception of two or three truly independent voices (especially the courageous surviving directors Kressa and Isdelle), the emotionally conflicted larger board circled the wagons to protect the CEO when legitimate criticisms arose

  • PM_Guy

    The the Judge has made order on pension ratios payouts. The Judge will allow those current members to take the commuted value of 86%. All future employees will only receive 69% going forward.

    This was supported b Nortel; the Monitor and the representative council. It was only opposed by the PBA.

    Again the employees who stuck it out at Nortel get shafted again. Current pensioners get 100% on a monthly basis, Ex -employees formally got 100% pre Chapter 11 now 86% and all future ex-employees we only get 69%.

    The Judge noted that it may not be fair to all but the ex-employees relied on the fact that they got a letter promising 86% payout and approved the payouts.

  • soundslikesourgrapes

    How much money would you be talking here anyway.
    Assume a person was canned who was there 20 years and left at a massive
    overpaid salary of 100k.
    How much would they be getting here if they took the lump sum?

  • togoraf

    Shareholder rights need to be restored.

    http://www.icahnreport.com/

  • soundslikesourgrapes

    Very Stupid and Unfair to mention GM and Nortel in the same breath.
    Here is why.

    GM has just gotten a 10.5 billion dollar bailout in Canada.
    That is over 200k per employee.
    It does not matter if they ever sell another GM again.
    The employees have the money.
    Their wages, benefits, pensions and retirement is secure.
    The taxpayer is paying to support a useless product that nobody wants
    and cannot anywere compete with other auto makers who make more efficient, cheaper cars that people want.

    Now Contrast that with Nortel.
    Employees get screwed.
    As noted by the recent pension payout the ones still there get screwed more than the ones who were laid off.
    No bailout for Nortel even though they make competitive gear that in some
    cases is ahead of the competition.
    Nothing from Mcguinea or harper.
    The large assembler bailout has probably killed any chance of Ferchat having his way. No way Mcguinea or harper will be in the mood to bail out
    or invest in a good plan that could be offered to nortel.
    They only invest in bad plans.
    They would rather give the tax payer money to employees who make a product nobody wants and even less people will buy now.
    What a great day to be an auto assembler.
    What a lousy day to be a bright, educated versatile high technology worker.
    Don't bother telling your kids to get a diploma or degree.
    Tell them to go work at GM.
    Thing is there will be a major hiring freeze there.
    For the ones still there a major payday.
    Probably no more layoffs and gov't billions to keep them safe and
    secure the rest of their lives.
    If I was a GM worker I'd be drunk tonight.
    Money for the kids for life and I'd be planning my trip to Cuba.

  • RealityStrikes

    A new monitor's report from E&Y discusses LTE and how Hitatchi has entered into an “non-exclusive” agreement to license the MME / NEM software from Nortel for a number of years, and it also includes training Hitachi employees.

    The “non-exclusive” part of the agreement is interesting. It will be interesting to watch what happens to the Nortel LTE Core & Access developments.

    (I understand that the MME is part of LTE Core, so Hitatchi is apparently not interested in LTE Access from Nortel.)

  • gmg733

    Gores group to buy enterprise. Announcement coming hopefully Tuesday. Avaya's move is a counter move as they will not be the stalking horse.

  • gmg733

    Gores group to buy enterprise. Announcement coming hopefully Tuesday. Avaya's move is a counter move as they will not be the stalking horse.

  • NTblinker

    ok, today is Tuesday, we will see if there is a sell off or not, but if not please do not spread these type of lies again, ok? I am sure there won't be a deal between NT and Gores group.

  • StillAtIt

    I don't think we'll hear anything today… looks like they aren't even telling the judge anything…

    http://www.canada.com/Toronto+Reorganization+ta…

    Nortel Networks Corp. told an Ontario judge it's premature to discuss the scope of its reorganization plan.

    “Divestiture, divestiture, divestiture and a bigger one down the road,” Ontario Superior Court judge Geoffrey Morawetz, who is overseeing Nortel's bankruptcy protection case in Canada, said at a hearing in Toronto on Monday. “Where does this end?”

    Morawetz approved Nortel's request to sell a stake in a South Korean business and to license its technology to Japanese electronics maker Hitachi Ltd.

  • gmg733

    This is what management has told the field. Around 50 sales offices are to be closed by the end of June as well.

    I am not spreading lies. I am only relaying what I hear from credible sources within the company. Yes there has been several false starts as others, potential acquirers, have stopped momentum to do their own due diligence.

  • gmg733

    And I said hopefully Tuesday. If NT can find a way to screw something up, they will find it.

  • less

    Both companies got to Chapter 11 the same way – way too much money to burn, too many duds in charge forever peddling ever staler products, the working masses blissfully sanguine by way of nifty, if cheap, gadgets and bonuses, trusting in their noble UAW / contracts-made-in-Canada to protect their interests and jobs. Don't stop believing. Just keep throwing borrowed money at your problems and they will surely go away.

    It does not matter if Nortel ever sells another product again. The BoD keeps the money. Thats okay with you, fine.

    What remains to be seen and compared is what and how much GM does and how quickly they do it. Even if they botch it up, they'll have tried something>/>, and thats the difference.

    So far Mike Z has been sitting in his 2008 Hummers and 2007 Pontiac Azteks making engine noises with his petulant lips, expecting them to somehow become sought-after classic collectibles overnight, even without warranties or replacement parts.

    Any day now.

  • less

    I just can't resist. There are a bunch of stories online describing “cars that wrecked GM, Pontiac, Chrysler”…

    “I Commander Mike, have initiated change to Saturn Nortel around at a fast Pacer, Sebring it back to its Corvair values of the highest Caliber, Edsel our products once again in every Hemisphere in Accord with global excellence. And all within the next 300Centuries.

    There Yugo.”

  • brett5

    Yep. It's almost as if the Dream Team thinks this is going to be a big suprise … the longer the anticipation goes on the less impact any announcement will have.

  • nblog

    Looks like this is false

  • goolge

    came through many times.

  • broadbandbill

    You misunderstood so let me explain a bit. The comparison was with the cause and not the effect. Both CEOs were stubborn and did not listen to anyone, made bad decisions (hiring, strategic, tactical, acquisition/divestiture etc., etc., etc.). In addition, let’s not forget the ‘rubber-stamp’ BoD that paid a pretty penny to get a guy that ‘de-created a great company’ Stupid perhaps but it shows that guys that think ‘bigger is better’ don’t have a clue about how system science works and its applicability to business…– bb

  • less

    “This is the Vega. This is Nortel”

  • less

    My automated daily jobs listings at Careerbuilder and Indeed are suddenly returning e-mails regarding Nortel PBX maintenance

  • less

    My automated daily job searches at Careerbuilder and Indeed are suddenly returning numerous e-mails regarding Nortel PBX maintenance offers……

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