14 - 16 November 2012 | Cancun, Mexico

Karl SoderlundVice-President Americas Channel Sales

Agenda- My Vantage Point: Strength of the Avaya Channel- 365 Days: Foundation for Success- Driving Success in FY13- Winning Big

• IP Office – Brian Murray• Radvision - Patrick Scott• Networking – Dave Fraser

- Setting Expectations

During Our Time Together

Why I’m (still) Happy to be Here

14 - 16 November 2012 | Cancun, Mexico

Technology Customers Partners

FY12: A Tale of Two Avayas

Dramatic Programatic ChangesQuality IssuesMentality: “Us v. Them”Sentiment: Lethargic Groundswell of Direct Conflict

Where We Were1H FY12

Program Consistency & Predictability Best in Class Mid-Market TechnologiesMentality: “Strategic Alignment”Sentiment: BullishConflict is exception, not the rule

Where We Are2H FY12

Works in Progress

Monetizing Nortel Base

Leveraging Avaya High-Touch Team

Simplifying Complexities

Continuing to Raise the Bar

Streamline Processes Invest in Partners Generate Leads

Re-Structured Channel Marketing

Unified SME & ENT Channel Orgs

Aligned distribution under US Channel Leadership

Simplified Sales/Channel Territories

Streamlined & Enhanced Support

Driving Partner Profitability

• New Customer Incentive• Launch new incentive to drive net-new with our Platinum PartnersNEW!

• Deal Registration• Higher payouts for strategic products. Inclusion of SME, Video & DataENHANCE

• Grow Right• Inclusion of Video & Data (SME already included)ENHANCE

Better aligning our program benefits to incent behavior and reward results

Investing in Our Partners

Actions Speak Louder Than Words

Created IPO 8.1 / Networking Demo Kit Soft Bundles

Funded 120 Demo Kits for Partner field offices

Funded 31 SME & MM Appointment Setting Campaigns

Demo equipment & training for Wave I & Wave II Partners

Q1 Appointment setting campaigns for Wave I partners

23 hand-pickedpartners

Additional support from Avaya teams

Strategic planningmeetings and pathto success plans

Bounce BackRadvision Demo Kits

IPO Demand Generation

Leveraging Avaya’s Inside Sales Team to uncover new opportunities

Delivered 159% more BANT qualified leads this year: 13,996 in FY12

99.5% of all Avaya- generated leads are distributed topartners

Qualified Leads

FY13: Tenets for Success

Alignment

Teamwork

Activity

Organizational Alignment

Karl SoderlundChannel AMsChannel SEs

Channel NetworkingChannel Video

DistributionBusiness Development

John Dilullo Americas Sales

Tom MitchellGlobal GTM and Enablement

Avaya Learning

RecruitmentOn-boarding and

EnablementCust. Segmentation /

White space

Avaya Connect

Global Accounts

MNC Accounts

Major Accounts

Customer Focused High Touch Account Control with

growth in critical customers! Market Focused

Broad coverage driving growth in strategic areas

Communications

!NOTE: This will not diminish the channel role in large accounts

• Focus on:– Selling newer technologies to existing customers (e.g. Data, Video)– Hunting for new sites or competitive sites within existing customers (e.g. US Deal Reg)– Hunting for new customers (e.g. US New Customer Incentive)– Selling higher margin technologies to existing and new customers (e.g. US Grow Right)– Selling retail maintenance services in the US (e.g. US maintenance commissions)

Two Defined Sales Motions

Protect & Upgrade the Base

Existing Avaya Footprint

Fuel Growth

New Technologies to Existing Customers

New Customers

A Territory Model for Teamwork

TAMs are “quarterback” for territory TAMs leverage CAMs and Partners for demand generation and

customer coverage TAM accountable for territory growth – with and through legacy

and new partners

Desired Objectives

Future State

Customer

AvayaPartner

Partner Sales

IS / M

kt /

Svc

s

Avaya Cam

TAM

TAMs focused strongly on End Users Partners used for pure fulfillment – not leverage Avaya Channel CAM used for deal administration Non-existent TAM-to-Partner alignment – other than deal

processing. TAMs NOT involved in Partner recruitment or enablement

Current State

Current State

Customer

Partner

Partner Sales

TAM

Avaya

IS /

Mkt

/ Sv

cs

Avaya Cam

Increased Activity = Increased Results

Looking Forward: What You Can Expect

iCAM Support

100% Channel in the Mid-

Market

Simplified MDF Program

Disti Radvision Labs & Support

Partner Connection

Days

Where We Are Winning . . .How We Are Winning . . .

IP Office Radvision Networking

IP OfficeNew York Not-for-Profit•$97,000 deal @ 40% Margin

Opportunity:Customer looking to replace their legacy Definity system. The CIO wanted to compare the 3 alternatives: Avaya, Cisco and Shoretel.  They issued a Mini RFP asking all 3 companies for an overview and demonstration. Customer Evaluation:- Cisco was eliminated due to pricing (double) TCO- Shoretel brought in their demo kit & impressed the client-Avaya’s presentation was done at the EBC. client was very impressed with IPO Server Edition and how all of the client’s requirements were covered.

Avaya Differentiators:Conferencing capability built in (big leg up over Shoretel)Avaya’s Mobility and BYOD Solutions (One-X, Soft phone, Flare)Pricing: Leveraging Avaya promotions (777), the Avaya proposal 20% less

Decision:Feature functionality with conferencing and the price solidified

the client’s decision to purchase Avaya.

Publishing Company•$165,000 deal @ 50% Margin

Opportunity:Customer had a CM4 solution including Intuity that was end of lease on a 5 year FMV lease.  Existing solution headquartered in NYC with an LSP in Los Angeles.  Total station count is 350 stations and interested in OneX Mobile. Financials:End of lease buyout from AFS was approximately $120,000; Upgrade to CM6 and Aura Messaging was an additional $120,000.  Total investment to keep the CM was $240,000 plus annual Support Advantage. Proposal:Partner positioned an IPO with all new endpoints. In addition, maintenance on the IPO was 40% less per year and OneX Mobile included presence making it more feature rich on IPO than CM. 

Decision:This was a finance driven decision

The IPO closed in two weeks.

Revenue: ~$218,000+ Install (AV Integration) & ServicesCompetition: Cisco/TAA (Incumbent video)Channel : Avaya Connect Partner

Why We Won:

•Understanding Business Drivers.  Consulting to identify the key business processes coupled with solution selling, and a compelling TCO.  Examples include: “Ask and Expert” virtual support, B2B simplicity, Board of Director and Leadership meeting support.

•Vendor Agnostic Approach.  Our ability to present an “end to end” solution with multi-vendor interoperability to leverage installed assets with goal to upgrade an additional 17 Branch locations in 2013.

•Pricing/Solution Strategy.  Bundled strategy with management (iView) solution to support mixed environment and be supported on VM WARE environment. This coupled with Scopia Mobile and Net Sense forced competitors hand while exposing high cost of sale for similar offering . Our Dynamic (4:1 ) MCU port support for Scopia illustrated scale of offering as Bank grows while managing bandwidth assets where possible.. Achieved increased productivity , ease of business while increasing customer service.

Video Collaboration Win: Mid Size Regional Bank

Radvision

Customer Business

Issues

Pre-Sale Installed

Environment

Avaya-Radvision &

Partner Solution

Networking

Stan

d-al

one

IPO

Avaya

-on-

Avaya

Stan

d-al

one

CM

UC Cor

e

UC Cor

e an

d Ed

ge $-

$100 $200 $300 $400 $500 $600 $700 $800

CM End to EndCM CoreCMIPO EdgeIP Office

Sold at list

18% m

argin

25% m

argin

Mutual Expectations

My Commitment to You

• Listen

• Engage

• Take Action

My Ask of You

• Don’t accept the status quo

• Drive for growth

• Hold each other accountable

Thank you