Avaya Bankruptcy is a Natural Part of Cloud Evolution

Feb 2017

Buying an on premises PBX or call center solution made sense a few years ago.  But the Avaya bankruptcy shows that things have changed.  Avaya is the #2 provider of premise-based PBX systems behind Cisco, and declared bankruptcy just a few weeks ago.


Broad Trends Are Driving Cloud Adoption


Cloud based phone systems and contact centers provide better features and reliability at a lower cost point than legacy PBX systems.  They eliminate the need to buy, own, maintain and update expensive hardware-based solutions.  Unified communications via the cloud is the new way for businesses to conduct business communications and collaboration. In fact, the global unified communications market will reach $143 billion by 2024, says Grand View Research.  Compare that to just $7 billion in 2019 per IHS Markit.

Today’s mobile and distributed workforces require the ability to work and communicate in any way, from anywhere, across all kinds of devices.  Only the new generation of cloud-based communications solutions can meet these needs.


Hard to Flip A CapEx Model to OpEx


It is not surprising that Avaya was late to the cloud trend. As a leading equipment provider under a CapEx business model, it faced a difficult decision as to when it should begin to cannibalize its hardware sales and push as a top priority a software/cloud replacement. It’s not the first to face such a fork in the road, nor the last to incorrectly time the switch. The transition to the cloud and cloud technologies is rapidly forcing both legacy hardware and software vendors to establish OpEx strategies that can effectively maintain and grow their businesses.


About Altus


Altus is the premier choice for cloud-based communications solutions, providing businesses with flexible and secure technologies that help employees and customers stay connected more easily.  Whether looking for basic voice service, comprehensive unified communications, or contact center, business executives trust Altus to deliver the latest features and functionality without costly capital spending programs.  Altus offers carrier-grade performance across its secure, geo-redundant platform. Start communicating better with Altus.  For more information, visit www.altusuc.com or call toll free 866.922.4001.


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