Gokul Blog — A conversation on VoIP, IMS, Cisco and Just about Anything

Deeper analysis of VoIP

Who is going to buyout Avaya?

Posted by tggokul on June 11, 2008

By now, the storm of Lou stepping down as CEO has passed over. Yet the question still remains. What is going to happen to Avaya that was bought over by SilverLake partners just over a year ago.

I have been hearing from different sources that top guys ( one was even close to Lou) are being let go and this would only mean that Avaya is going to be sold to the topmost bidder. Either as a whole entity or after splitting them into different entities.

Interestingly though, there are two names that are being floated as possible buyers. One is Cisco ( is there any deal in the world, where their name is not flouted?) and the other is very surprisingly Nuance. I can understand why Cisco’s name is prominent. The interim CEO who is taking over from Lou is none other than Charles Giancarlo, a prominent ex-Ciscoian. 

Nuance is trying to enter the PBX/ACD world to further stabilize their speech market and this would be a logical step. Microsoft and upto some extent IBM are developing Speech engines and the only way for Nuance to continue their stranglehold would be to enter the PBX sector as well.Nortel seemed a little interested a year ago, but with their current state of affairs would not be brave enough to venture in this.

One thing is sure. The face of Avaya would change in the next couple of months.

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2 Responses to “Who is going to buyout Avaya?”

  1. Madhavan said

    Avaya was created out of venerable names like Lucent and AT&T and assumed different faces everytime.

    In yet another twist to this tale, Avaya may actually be acquired by a competitor for its customer base with the Big Iron’s equivalent in the telecom switches.

    The only moot question is whether the new buyer would pay decent value for the residual brand value.

  2. anonymous said

    first expect a series of Avaya businesses shutting down, some layoffs, few legacy stuff being shutdown. Make Avaya nimble and then someone like Cisco or Nuance can take over.

    This will take time …I would say at least 6 to 18 months

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