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Avaya....What is going to happen? 5

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300Blackout

IS-IT--Management
Jan 2, 2015
62
US
Avaya filed Chapter 11 yesterday. Wonder what is going to happen? I think it hurt Avaya buying Nortel. Nortel was old TDM platform and the BCM was pretty much a flop especially the BCM 50. Avaya had too many platforms to keep up kind of like GM with car brands.
 
The company's curse was buying Nortel.
AV was taken into an LBO before the financial crisis and had ZERO Debt. Why did PE firms buy them out, if there was no need to restructure them a Nortel buyout was NEVER in the cards, is beyond me.
They buy Nortel and technical people in the C-suite who had no compliance and business background got the company into debt.
The maker of M1 and Norstar switches was the same company that had cooked the books in the early 2000s
The people behind the DMS also tried that "reverse stock split" and it got them nowhere.
I have inside sources that dating back Avaya Red<Lucent, there were shenanigans, but the company survived before the NES buyout.

It's sad. E911 for PBX/KSU customers regs forced people to cut the cord. It's sad, Avaya helped doing this, and there are people at that company that are public about that. People are in greater danger than ever before. 911 is not magical. Only one area code has the strongest E911 system in the country and that is 603 - New Hampshire. But NH is ridden with VOIP/mobile and barely any 1FB/1FH trunks, sadly.

I digress.

However I guess I'm going totally off topic since what is missing is the customers of the G3, CM/Aura/MV, S8300/8700, G650/G700, the Partners, the Merlin Family, and the infamous IP Office. Right, I forgot Avaya became Nortel and they forgot to change their name. I never liked Nortel, tech companies come and go and Avaya probably has 1% of the Fortune 500 when a DECADE AGO they had "more than 90%".

Avaya's demise is their fault, their business, their concern, their responsibility. They need to blame themselves. They are their only fault. They need to write a letter to their 5 remaining customers (I believe manatees and crocks use them more than humans today) stating "We Failed for Buying a Bleeding Edge Company that Bled our Finances. We Are Sorry"

RIP.

 
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not sure it matters much at this point lol, theyve been losing money for quarter over quarter including record losses over the last two. Just bought them some time. Put a fork in em

 
Of course they might be bought out. Have heard some rumblings. Thinking it might happen before the end of year but with the passage of the new tax laws there may be a buyout after repatriating overseas profits. They already had a pretty hefty bid for the contact center business last year. Same bid would just about get the whole company. I don't think the lenders really want to take more risk by putting them on the market. Could lose another fortune overnight. I was happy to see their request for non-disclosure turned down. Potentially would have been a class action suit.
 
Just a thought for most of you that never worked for Nortel.

Nortel went down the pan not because of their voice products, which at the time they declared bankruptcy was still making over a billion dollars globally or the fact that Nortel data products were doing quite well either. some bright spark in Nortel thought that they would waste 100's of millions developing their own WIFI standard which never took off(surprise, surprise).

The other major issue was the pension black hole which anybody who worked for them got a letter informing them of the deep brown stuff they were now in. this was multiple billions of dollars & affected them globally including the UK (thanks for that)

Avaya, when buying them out thought they would simply rip out the M1/CS1000 estate & replace with their own equipment only to find that in most cases their kit couldn't match it hence the further development of the CS1000 from Rls 5 when they brought Nortel through to 7.6 & the introduction of the Aura range to tie bot Red & Blue together.

Now I remember working on the Meridians/CS1000's daddy the BTEX SL100 (from the 70's) in the mid 90's (I was only born in 79), so I know the Nortel range for a long time & we all have our favourites but I have moved across a few vendors over the years & this is just another case of moving with the times, its fine that others laugh but karma has a funny habit of getting those back. This time around I've move to the dark side (Cisco) but they've got to watch out for Huawei. One final thing, if Avaya sell the CC7/ AACC product on its own that will be the end as its still the best call centre software out there & the only way back for them.

Have fun fighting amongst yourselves, just though I inform you all of how the mighty Nortel did fall

Remember if it doesn't work hit it harder

Scott UK
 
Curious what everyone's transition plan is for their future careers? Regardless if Avaya rises up from the ashes or not. Everything is moving to the a cloud based solution. Weather it's Avaya,Cisco,Google,Amazon etc.
If your a field tech like myself. 1996-2018 Nortel then Avaya equipement. The on-premise PBX will be obsolete soon. I was hoping to ride this field out till retirement but it's not looking good.

I used to have super powers but my therapist took them away...
 
Unfortunately I'm going Cisco, Yes it's crap but there's loads of it globally & generally Cisco Data guys can't understand voice too well

Remember if it doesn't work hit it harder

Scott UK
 
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