Five Reasons Avaya Says It Wants Nortel Enterprise

For those of you still scratching your head over Avaya’s decision to acquire Nortel Networks’ enterprise assets, Avaya President and CEO Kevin Kennedy (pictured) laid out the deets in his general session today at Avaya’s 2010 Global Sales and Americas Partner Conference. Here’s what Kennedy had to say…

The top five reasons are:

1. Net New Seats – Avaya acquiring Nortel’s customers means a two-fold increase in the number of folks using Avaya/Nortel equipment. Which means a larger customer base for channel partners to infiltrate.

2. Accelerates Avaya’s Channel-Centric Go-To-Market Strategy – Since Avaya made the decision last year to put its channel partners first, it can learn a thing or two from the things Nortel did well (and not so well) with its channel partners. As they say, forewarned is forearmed.

3. Enhanced R&D To Accelerate Solution Innovation – Avaya gets a plethora of technology – and a whole lot of really smart Nortel engineers – with the deal. That can only help a company that is focusing more of its efforts on innovative products—a key strategy for Avaya in 2010.

4. Growth of Maintenance Business With Services Attach – Acquiring assets also can mean acquiring a significant number of break-fixes. Maintenance alone on Nortel equipment will generate a lot more business for Avaya. Partner that with services that accompany maintenance, and Avaya channel partners have a whole new field to play on.

5. Geographic Scale and Industry Breadth – Nortel is Canadian, eh, with a decent global presence. Avaya is a veritable infant in its global reach, but riding the back of a well-known brand can help the company get its foot in the door of a lot more international firms.

Some argue that the Nortel acquisition doesn’t bring much to the table when the T’s are crossed and I’s are dotted, but Kennedy sees an acquisition that long term positions Avaya to be a much stronger company with a healthier balance sheet and more robust hardware. Which is nothing but good news for the channel.

As you may recall, the Canadian government is reviewing the pending Avaya-Nortel deal.

Follow The VAR Guy via RSS; Facebook; Identi.ca; Twitter; and via his Newsletter; Webcasts and Resource Center. Plus, check out more channel voices at www.vartweet.com.