RIGHT SIZING #Avaya

This paragraph deserves it's own post

RIGHT SIZING CUSTOMER BASE & METRIC FOR DEFINING LOGOS & CLIENTS
– 90,000 Customers? What is the break down of Products/Solutions/Contract Length/Subscription/Cloud. How much revenue does each type drive?
– What is the accurate cumulative attrition since the last time the 90,000 # was updated? Has Avaya ever updated its client numbers since coming out of bankruptcy?
– 1400 Net New Logos? What’s the metric to define a new customer? Employees have been told it is if the client has not transacted with Avaya in 3 years. However, how many of those 1400 “new logos” are included in the 90,000 customer metric? Safe to assume they are already accounted for in the 90,000?
– What is the minimum to qualify to be labeled as a new customer? If they signed a license for a free Spaces Account, does that non-revenue generating customer get tracked as a new logo? Was it these free Spaces clients that were accounted for in the total projected subscription revenue?
– The 400m new client? The reason the market jumped in on the Avaya smoke and mirrors was that it was communicated in earnings calls and trade publication interviews that the new 400m client was just the first in what would be multiple new, similar sized clients joining each quarter. It is time to walk that back? Share how unusual the client situation was and how it is near impossible to replicate that deal? And is that deal still on?

Comment! It's anonymous!

5 replies (most recent on top)

Did client walk away B4 JC left?
And yes, Avaya treating a client like the client was lucky to work with Avaya is on theme.
(Meanwhile here are dozens of marketing resources making noise and recirculating narratives). Never the right resources for actual revenue generating clients

400m client walked away because there was nothing delivered and just a bunch of ongoing meetings where we bitched at the client and told them no/wrong to everything they asked for.

THIS IS THE POST! If all of these questions are answered, then the guidance miss is perfectly explained.

Guiding via inaccurate data and metrics is just a house of cards waiting to be blown over. And, we learned May 10th (those of us who really paid attention on May 10th, that it had not only been blown over, yet there was a stampede running over what was left. It was only in late July that Avaya actually had to own up to what May 10th began to reveal. And they are still running. Still no Q3 10q and Q4 is over. Still no report on the internal investigations, the Whistleblower. Yet what WE DO KNOW? That these questions are most profound and the answers will tell us everything. You know, when people began to question Avaya in late May, they had their industry paid off consultants saying things like "You have no idea what I know about Avaya", demeaning people who asked questions. In fact, they bragged about the ill-fated Wells Fargo deal and claimed there were many more in the hopper just like that deal. To think Avaya still pays and promotes such a consultant is ridiculous. They are at Gitex now living large and getting paid. When will Avaya stop the ridiculous game of "Look Here, Not Over there" redirection and actually be what they say they are?

CM4 comment is excellent. Exactly...what is real? I fear there are a lot of CM4-like breadcrumbs, that if followed, will result in just breadcrumbs, no revenue.

One thing that I was always curious about was when stating 90,000 total customers, are they accounting for any customers that has any type of license or equipment purchased in the history of Avaya/Lucent/Nortel?

For example if a customer is still on a Norstar and they have not bought anything (no hardware or maintenance) in 10-15 years, does that qualify as a customer?

Another example, what if a customer had a CM4 and they have replaced it with Cisco in 2010? They no longer use any of the Avaya gear (decommissioned everything) but technically they own the license/hardware forever since it is perpetual. Does that qualify as a customer?

Thread regarding Avaya layoffs

RIGHT SIZING #Avaya

5 replies (most recent on top)

Post a reply