Avaya helps to tie the corporate world together. The company's communication equipment and software integrate voice and data services for customers including large corporations, government agencies, and small businesses. Its office phone systems incorporate Internet protocol (IP) and Session Initiation protocol (SIP) telephony, messaging, Web access, and interactive voice response. Avaya also offers a wide array of consulting, integration, and other managed IT services. The company sells directly and through distributors, resellers, systems integrators, and telecommunications service providers; more than three-quarters of its sales are made indirectly. Its parent company is Avaya Holdings.
Avaya divides its operations across three segments. Two of the segments -- Global Communications Solutions (GCS; 44% of total sales) and Avaya Networking (6%) -- make up the company's Enterprise Collaboration Solutions product portfolio. The third segment is Avaya Global Services (AGS; 50%).
GCS offers business collaboration and communications software used to make IT infrastructure for communications contact centers. Avaya Networking makes Ethernet switches, routers, a virtual private network technology products, while AGS offers IT consulting and advisement services.
Avaya operates through about 178 leased facilities and two owned facilities spanning some 58 countries. It has 11 primary research and development facilities in Canada, China, Germany, India, Ireland, Israel, Italy, and the US.
Customers in the US buy 54% of Avaya's products, followed by Europe with 26%, Asia-Pacific at 11%, and Canada and Latin America, 9%.
Sales and Marketing
About a quarter of Avaya's sales were made directly in 2015, and the company's sales strategy has emphasized building its channel partnerships. The company continues to offer traditional communications equipment with an eye toward migrating legacy voice network equipment to IP-based systems.
Avaya's revenue slide continued in 2015 (ended September), dropping 7% to $4 billion. The company has lower sales through all its market all geographic segments. Sales for its legacy product continued to fall in 2015 while currency exchange rates also reduced revenue.
While Avaya has lost money for nine out of the past 10 year, it has narrowed its loss in the last two years. It reported a loss of $144 million in 2015, compared to a $231 million loss in 2014.
Cash flow from operations rose to $215 million in 2015 from $40 million in 2014.
Avaya sold non-core businesses and released some 100 products in 2015 that expand its cloud computing and mobile offerings.
The company sold its IT Professional Services business for $101 million as well as the Technology Business Unit (for $14 million), which had been acquired with RADVISION Ltd.
In 2014, the company expanded its cloud offerings and capabilities and introduced 114 products, a 10% increase from 2013.
Mergers and Acquisitions
Avaya boosted its cloud offerings, in part, through acquisitions. In 2015, it bought Esna, a provider of cloud-based unified communications. Esna operate as a wholly-owned Avaya subsidiary. The move helps position Avaya as a provider of mobile and cloud-centric collaboration technologies.
The company previously acquired IT Navigator Ltd., a global provider of cloud, social media, and management products and services. The integration of their portfolios enhanced Avaya's cloud as well as its unified communication and contact center products.