Avaya's Nortel acquisition moves it to number one in N. America

Updated: January 07, 2011

Avaya won the auction for Nortel's ES division on Friday with a bid of $915 million - $900 million of it in cash. There was only one other bidder - which was widely rumored to be Siemens. The acquisition is not expected to face much delay despite a mandatory review and despite a Verizon filing that alleges the acquisition will harm its business and particularly strategic and military contracts it has with the federal government.

The result of the acquisition is that the combined group will now take the lead in enterprise VoIP market share from Cisco - but not by a wide margin.

There are lots of questions floating around the industry, many inspired by the Verizon motion. The biggest area of concern is support for Nortel's customer base and whether Avaya has the resources to manage this. Other questions include how dealer and distribution agreements will be handled and how existing contracts will be affected.

Nortel was a much larger company than Avaya before its bankruptcy. And many of its assets and divisions are being sold seperately. Ericsson purchased the wireless group recently and voice technology and government solutions groups are to be auctioned in the future. But despite that, there are many product areas in the division that Avaya purchased that are new to Avaya - specifically to do with data networking. What is Avaya going to do with these? Is it going to sell them, drop them or try to compete in an area where Cisco is already very dominant?

There is a great discussion of the channel ramifications at the Unified Communications Strategies site.

Featured Research
  • The New SMB Phone Systems Comparison Guide

    Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more

  • How UC Can Help Your Business Survive the Holidays

    The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more

  • [Infographic] Switching Phone Systems

    There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more

  • Business VoIP on a Budget

    Voice over Internet Protocol (VoIP) phone systems represent the next innovation of telephone connection and communication by making it possible to conduct calls over a broadband internet connection, rather than an analog phone line. more

  • [Infographic] The Advantages of Unified Communications

    Did you know that according to 8x8, the tangible ROI of a unified communications solution for a 10,000-person enterprise is approximately $15.5 million? This isn't the only way unified communications can improve your business. more