If Silver Lake/Avaya could only acquire one, which should it buy?

2 Comments

  • Ben Beeftink - 15 years ago

    Avaya has the opportunity to buy marketshare of Norel Enterprise customers and smooth increase business by spin-off.
    Avaya can profit directly from acquisition of the large Nortel installed customersbase in the enterprise market.
    It gives them the entrance to upgrade and win large companies that would prefer to migrate their voice communication solutions.
    the advantage for customers: at their own pace from existing and today's not optimal, costly .... to incorporated & advanced communications: Standardized, Integrated, Consolidated voiceplatform.

    Because of Avaya's strategy and strength of their open interface to integrate and cooperate with thirth parties, I woul not recommend that they buy a Videoconferencing-manufacturer, neither should Avaya go back in selling switching and routers.

  • Jim O'Gorman - 15 years ago

    Going for Nortel Enterprise is the best move: it provides Avaya with a significant boost to market share; gains loyal customers and key personnel like Phil Edholm CTO. Nortel's current channel network is a shell of it's former greatness, but in fairness, they have been working under a long shadow of Nortel's financial troubles. Long term investments are tough to make in that environment. Avaya on the other hand has Jeremy Butts VP of World Wide Channels and if his presentation at INAAU to consultant's is any indication he's got the right stuff to pull things together and make it happen. His boss, Kevin Kennedy is a roll your sleeves up, can-do, engineer and Nortel is an engineering driven firm at heart, so tackling the integration of firms should be something at least well understood by all participants, say like an engineering problem.

    In contrast purchasing Tandberg, while a maker of excellant video conferencing equipment, really brings no 'base' per se to the equation. Do they bring UC expertise...I haven't scene it. If Avaya wants to populate their Aura UC environment, there are other less expensive video vendors (think LifeSize) to work with. Why would Avaya want to squander it's money on a company with generic benefits (reduced corp travel and increase collaboration), when those endpoints are competitively available in the market?

    Smart money is on buying the NE base; remember, NORTEL has HUGE installations, not your SMB type of guys; ripe territory for Aura. If Avaya can properly manage the transition, hold and groom the accounts; it could be a cash engine that fuels future growth.

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