The talk of the town in the telco world is that on the 14th of February Avaya filed for bankruptcy. This is the second time, the first being in 2017, that the company has filed for bankruptcy and this time round their reasoning for the bankruptcy declaration comes on the heels of accounting problems related to cloud subscriptions. This led to substantial earnings and revenue target misses that the company couldn’t come back from without ultimately undergoing a financial restructuring.
In their official announcements Avaya appears positive declaring that the company is going all in on cloud communications in any form; private, public or hybrid. But are they maybe somewhat late in doing so? Should they not have moved their focus away from proprietary hardware-based PBX solutions sooner and entered the cloud-based PBX market years ago?
Customer concerns – Is Avaya Future-Proof?
The fact that this is the 2nd time that Avaya has declared bankruptcy in 6 years, has its customer and partner base severely worried about the future of the company. And rightly so. The admission that only now is the company putting cloud communications at the forefront of their future strategy proves that they are late in entering the cloud comms game.
With so many players already established in cloud communications, one has to think whether or not Avaya really has a chance of overcoming their recent financial problems and once again becoming one the major unified communications vendors. Even with the US$780 million funding they’ve managed to obtain the company will still be in debt by US$800 million! What’s to say they won’t end up declaring bankruptcy yet again in the near future?
After all that’s said and done, many of their customers are already looking into alternative solutions that will offer them stability, are more forward-thinking and future-proof. In its heyday Avaya was a top choice for contact centers, it now seems that they are losing that market to more modern, easy to use and intuitive cloud-based solutions.
Future-Proof Cloud Comms Solution – FREE
Avaya customers looking for a cloud-based communications system that is stable, future-proof, scalable, easy to manage and also costs a faction of what Avaya does can try out 3CX for free – no strings attached, and no credit card details required.
To try 3CX’s Call Center contact us and we’ll set up a trial for you.
