Avaya continues to maintain positive growth with c

Avaya continues to maintain a positive growth momentum using cloud technology

Avaya continues to maintain a positive growth momentum using cloud technology

-- Avaya was late at the beginning of the cloud game, but has now gained a strong development momentum

09:10:24 author: Source: CTI forum comment: 0 Click:

Lao Qin night translation

CTI Forum () news on August 13 (compiled/Lao Qin): Recently, Avaya announced its financial revenue for the third quarter of 2020, which continued to maintain a positive growth momentum, with revenue of $721 million, exceeding the general expectation of $686 million on Wall Street. In fact, the published revenue figure is much higher than the highest estimate of $696 million. Compared with the revenue of $717 million in June 2019, it also achieved a slight year-on-year increase in the quarter. This is impressive given the shift in income from one-off to recurring

other highlights of the quarter include:

software and services accounted for 89% of revenue, a record high

recurring revenue accounted for 64% of total revenue, with a year-on-year increase of 5%

cloud, alliance partners and subscription revenue (including Avaya cloud Office (ACO) of ring central) increased from 23% in the previous quarter to 30% in the current quarter. In the same period last year, this proportion was less than 15%

adjusted EBITDA was $187 million, or less than 26%, higher than 21.8% in the third quarter. The company generated $9 million in revenue, which means Avaya is now making money and has $742 million in cash/cash equivalents on hand

the total contract value (TCV) booked by the company is more than $2.2 billion, including 104 transactions of more than $1 million, 14 transactions of more than $5 million that can be dynamically switched by real-time graphics in the test, and 7 transactions of more than $10 million

the company added 900 new logos and launched ACO in Australia, Canada and the UK

from a quarterly perspective, there are some noteworthy things to point out. The first is the shift to recurring/cloud revenue. Why does the testing machine have the phenomenon of eccentric load? As I have pointed out over and over again, as a company dealing with many large enterprises, these organizations want to use the cloud model, but do not necessarily need SaaS. Avaya will always maintain a healthy combination between software and SaaS revenue, but the key is that it will carry out this business on a regular basis. The shift to software enables Avaya to provide continuous innovation without having to wait for specific upgrades

in addition, many ucaas and ccaas suppliers believe that the $1 million TCV transaction is considerable, but Avaya has 104 transactions that can reduce the quality and are in sleep. This is a real big customer, and Avaya is distinguished from most of the only SaaS competitors. In an interview, CEO Jim Chirico specifically called out the largest companies, which have transformed contact center seats into working at home using Avaya technology, including the Social Security Bureau, Comcast, Deutsche Telekom and Vodafone

Avaya CEO Jim Chirico on tdameritrade

although large enterprise and private cloud deployment have always been Avaya's advantage areas, ACO began to encounter some resistance. As mentioned earlier, the company has expanded ACO to other countries with some early success. Canada's first victory was the Canadian welded pipe group, a steel pipe manufacturer headquartered in Concord, Ontario. Canadian welded pipe group owns and operates five manufacturing and finishing facilities in Canada. American welded pipe chose ACO to modernize its communication and cooperation tools. Because ACO is sold in the United States and Canada, it receives a unified bill and can be managed through a single interface. When moving to ACO, it also leveraged Avaya's hardware as a service (HAAs) products

Wall Street undoubtedly provided Avaya with good feedback, because at the time of writing, the current trading price of the stock is close to $16 per share, much higher than the trading range of $6 in April

revenue is not the only positive progress Avaya has made in the cloud. On Friday, the company announced the expansion of its onecloud brand to the entire product line. No jitter Dana casielles spoke about this statement in no jitter roll last week

when Avaya used to use onecloud brand, it has now become a single brand of all its cloud products, and will delete names such as IX and readynow. Please note that for Avaya onecloud, the term onecloud does not mean a single cloud backend, but a single cloud experience. Casielles pointed out the general category of onecloud, but I will fill in some product details below:

Avaya onecloud ccaas, including the previous readynow private cloud and the recently launched ccaas service

Avaya onecloud ucaas is composed of ACO, spaces and readynow for UC private cloud

Avaya onecloud cpaas is a cloud API platform from Zang. Cpaas is the company's focus area because its target developers are embedding Avaya technology into applications. The recently announced contact tracking product is based on Avaya cpaas

Avaya onecloud is not only a brand promotion, but also aims to combine Avaya products. As the cloud continues to evolve, it will move from SaaS only to public, private and hybrid clouds, and will soon include edge computing. Avaya onecloud provides a single experience even if the back end is not a single cloud. The focus on experience is a big problem for Simon Harrison, the new chief marketing officer. It will help keep R & D, innovation and product development synchronized between products and regions. Avaya always has good products, but these products are usually created in isolation, resulting in the pressure of duplication or competition

over the past two quarters, Avaya has been moving in the right direction because it has fully aligned with the broader cloud definition. Its share price performance is sweeping the world with the covid-19 pandemic, so one can think that it is benefiting from the same trend as other communication companies. In fact, just as customers cannot switch to the cloud, so can suppliers. The positive attraction comes from the work done by Chirico and the company in the past few years

recurring and cloud revenue is an interesting thing. If the trend is negative, it's hard to reverse the trend - but Avaya did. The current trend is positive, and this momentum should continue for some time. I look forward to the findings of the next quarter

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