presentation 090805 seghatoleslami

Creating Business Solutions for the Mobile Enterprise : 

Creating Business Solutions for the Mobile Enterprise September 8, 2005 Saied Seghatoleslami VP, Product Management Communications Appliances Division

Forward Looking Statements: 

Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements regarding Avaya’s expected performance and outlook for operating results are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to: price and product competition; rapid or disruptive technological development; dependence on new product development; the mix of our products and services; customer demand for our products and services, including risks specifically associated with the services business and, in particular, the maintenance and rental and managed services lines of business, primarily due to renegotiations of customer contracts and changes in scope, pricing pressures and cancellations; general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations; disruption associated with the re-alignment of our sales and marketing efforts; risks related to inventory, including warranty costs, obsolescence charges, excess capacity, material and labor costs, and our distributors decisions regarding their own inventory levels; the economic, political and other risks associated with international sales and operations, including increased exposure to currency fluctuations as a result of our acquisition of Tenovis; the ability to successfully integrate acquired companies, including Tenovis, which has required significant management time and attention; the ability to attract and retain qualified employees; control of costs and expenses; U.S. and non-U.S. government regulation; and the ability to form and implement alliances. For a further list and description of such risks and uncertainties, see the reports filed by Avaya with the SEC, which are available at www.sec.gov, particularly the information contained in Part II, Item 7, entitled “Forward Looking Statements”, of our fiscal 2004 Form 10-K and the information contained in Part I, Item 2, entitled “Forward Looking Statements”, of our Form 10-Q for the fiscal quarter ended March 31, 2005. Avaya disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.   Presentation  Unless indicated otherwise, all results are presented in accordance with United States generally accepted accounting principles (GAAP).

Agenda: 

Agenda The Mobile Enterprise Environment A Definition of Enterprise Mobility Fixed Mobile Convergence What is it? Enterprise Fixed Mobile Convergence Solutions The Future

Redefining Business Communications: 

Redefining Business Communications Communications for competitive advantage. An underused means for superior execution and deeper customer relationships by making … people more productive … processes more intelligent … customers more satisfied

Enterprises Are Increasingly Deploying IP Telephony Foundation for Enabling Flexible Applications and Services : 

Enterprises Are Increasingly Deploying IP Telephony Foundation for Enabling Flexible Applications and Services Source(measured by lines shipped): MZA Global: Enterprise Telephony Installed Base Source – Avaya estimates based on multiple analyst reports Worldwide: IP Telephony Outpaces Traditional Digital Technology for Voice 400M 2003 2006 2005 2004 2007 500M IP Telephony Traditional Key/PBX Global Enterprise Telephony Lines Installed

The Environment: 

The Environment

What is Enterprise Mobility ?: 

What is Enterprise Mobility ?

How Do We Work Today?: 

How Do We Work Today? Home working 89% of top 100 US companies offer telecommuting2 60%+ Britons & Germans equipped to work remotely1 Mobility ≥66% workers will use mobile & wireless computing1 In 2008, 72% US workforce will be remote and mobile1 Branch Offices 9% of employees work at headquarters1 Virtual 58% companies consider theirs to be a virtual workplace today1 1Avaya interpretation of analyst data 2ComputerWorld survey

For Employees:Communications Out of Control: 

For Employees: Communications Out of Control Source: Avaya global user surveys Getting Communications Under Control Simplicity Single number, single voice mail, single directory Enterprise data access (email, intranet) Consistent user capabilities Take Control of communications Choice of devices

For IT Directors: Complex Environment: 

For IT Directors: Complex Environment Simplicity Single applications & network infrastructure Single reporting & accounting Consistent management and control policies Take control of mobile devices Choice of solutions supporting mobile workers Source: Avaya global user surveys

User Modes in the Mobile Enterprise Employees Transition Across Different Modes Through the Day: 

Roaming User Modes in the Mobile Enterprise Employees Transition Across Different Modes Through the Day Fixed Mobile Semi-Mobile Campus Deskbound Teleworking Users addressed by Enterprise Mobility Solutions

Needs of the Mobile Enterprise Vary WorldwideSolutions Must Adapt to These Different Environments: 

Needs of the Mobile Enterprise Vary Worldwide Solutions Must Adapt to These Different Environments 1Avaya analysis; 2UBS Data for 2004

What Are The Solutions?: 

What Are The Solutions?

Solutions in the Mobile Enterprise Nowand In the Future - Many Employees Use Many Solutions: 

Roaming Solutions in the Mobile Enterprise Now and In the Future - Many Employees Use Many Solutions Fixed Mobile Semi-Mobile Campus Deskbound Teleworking

Avaya Enterprise Mobility StrategyTransparently extend business communications applications to mobile workers; securely, reliably, and with centralized intelligence and control: 

Avaya Enterprise Mobility Strategy Transparently extend business communications applications to mobile workers; securely, reliably, and with centralized intelligence and control

Enterprise Mobility: Benefits for End UsersOne Business Number, Your Chosen Devices: 

Roaming One Business Number Enterprise Mobility: Benefits for End Users One Business Number, Your Chosen Devices Simplicity of user experience (one voicemail, one directory, one call log) Consistent user capabilities Control of business and personal communications Productivity transparent of work location At Desk

Enterprise Mobility: Benefits for IT DirectorsCentralized Intelligence and Control of Fixed and Mobile Communications: 

Enterprise Mobility: Benefits for IT Directors Centralized Intelligence and Control of Fixed and Mobile Communications Simplicity Leverage same business communications applications, IP telephony, and networks infrastructure Single reporting and accounting Consistent security and control policies Control of mobile devices and communications Transparency of mobile communications cost

Fixed Mobile Convergence: 

Fixed Mobile Convergence

Drivers for Enterprise Fixed Mobile Convergence: 

Drivers for Enterprise Fixed Mobile Convergence DISCONNECTED No Audit Trail Little Feature Access High Cost One Business Number for Mobile Workers Integrate Mobile Devices into Business Operations

Spectrum of Fixed Mobile Convergence SolutionsDifferent Solutions Required for Different Levels of User Needs/Capabilities: 

Customer Benefits Dual Mode Convergence Enterprise Deployment Integration Cell Only Cell / WiFi Spectrum of Fixed Mobile Convergence Solutions Different Solutions Required for Different Levels of User Needs/Capabilities Seamless Convergence Cellular Extension Client Based Cellular Convergence Accessibility Usability Tariff Simplicity ROI applicable to smaller number of mobile workers GA 7/26

Avaya/Nokia Mobile for Series 60 Customer Feedback: 

Avaya/Nokia Mobile for Series 60 Customer Feedback 100+ external users in more than 10 global trials (NAR, EMEA, APAC) Preliminary survey results: 89% satisfied with Avaya Mobile Client App met or exceeded expectations of 74% of users One number and flexibility equally ranked (74%) as features most liked “We believe this solution will enable our workforce to increase productivity, enhance sales and reduce communication cost when they are away from their primary workstation.” Tan Jin Siong, Senior Vice President, Pacific Internet “Bringing Avaya and Nokia together creates one of the world's leading fixed mobile convergence solutions.” Technology News Daily “Our customers are really impressed by the easy access to desk telephone features. Also they can enhance their productivity, save money and never miss that very important call they are always waiting for.” Serge Poppes, CEO, Newtel Essence

Avaya/Motorola Seamless Communications Solution: 

Avaya/Motorola Seamless Communications Solution 300+ users in 14 trials Solution is validated & ready for market Awaiting phone certification from service provider Challenges overcame: Minimize power drain Ensuring security Managing QOS over WLAN Ensuring a truly seamless experience No changes to cellular network Customer feedback Great productivity gains from One number, One vmail Improved customer service “We depend on real-time interaction – at the right time – to remain competitive. The Seamless Communications Solution gives us a more cost-effective way to deploy real-time wireless communications to our employees using a single device, and makes it easier to manage workforce mobility across our work campus—and beyond office walls.” Chris Nowak, IT Director, Anthony Marano Company

What’s New in Enterprise Mobility in FY05? Avaya Expands Choices of Devices and Work Modes for Mobile Workers: 

What’s New in Enterprise Mobility in FY05? Avaya Expands Choices of Devices and Work Modes for Mobile Workers Voice Portal Validated solution Phase 1 Avaya Mobile for Series 60 cellular extension product GA Multi-vendor phones supported today Roaming Nomadic Teleworking SIP softphone Video, SIP IM & presence integrated with sofphone DevConnect partner and reseller agreement RIM WLAN device supports Communication Manager SIP based telephony Softphone for PocketPC for Symbol handset

Enterprise Mobile Communications Transparently Extended to Mobile Users, with Centralized Intelligence and Control: 

Enterprise Mobile Communications Transparently Extended to Mobile Users, with Centralized Intelligence and Control Avaya is leading the industry in Enterprise Mobility, with a holistic approach and a comprehensive product portfolio Our strategy is built on Avaya’s leading Business Communications Applications, focused on the enterprise We are investing to deliver innovative and differentiated solutions with world class partners We are focused on extending our market leadership

The Future: 

The Future

Futures: Mobility Still has Much Change to Come: 

2G/2.5G/3G Road Warrior Enterprise Teleworker ISDN/DSL/Cable IP Telephony Server Service Provider Collaboration Presence IM (Desk / Mobile) Futures: Mobility Still has Much Change to Come

Futures: Mobility Still has Much Change to Come: 

Futures: Mobility Still has Much Change to Come Collaboration – centered around SIP bringing presence, voice availability, IM (desk and mobile), and email integration WiMAX – increasing bandwidth availability, simplifying roaming (campus and metropolitan), enabling VoIP growth IMS (IP Multi-media Subsystem) – will become core services platform for Service Providers, based on SIP will enable ‘simpler’ integration of enterprise services with Service Provider – enriches Collaboration

“Enterprise-Enabled” Mobile Communications: 

“Enterprise-Enabled” Mobile Communications There are many Solutions to Enterprise Mobile Convergence each need to meet these criteria to be successful

Slide30: 

Official Convergence Communication Provider for the 2002 and 2006 FIFA World Cup™ FIFA Women’s World Cup USA 2003

Avaya Fixed Mobile Convergence Client: 

Avaya Fixed Mobile Convergence Client Broadened device support Enhanced application capabilities Avaya Mobile Extension Middleware Enterprise Apps & Business Process integration (Calendar, email, SAP, Siebel, etc.) Device OS (e.g., Symbian, RIM, MS Mobile, etc.) Mobile Network (e.g., 2G/2.5G/3G, CDMA, WCDMA, etc.) Avaya Mobile Client (e.g., telephony, SIP/WiFi, OTA, etc.) Avaya Collaboration & Personal Productivity Suite (e.g., messaging, conferencing, directory, video, etc.) 3rd Party Apps Avaya’s differentiated mobile client

Enteprise Fixed Mobile Convergence Example:Avaya Mobile for Series 60: 

Enteprise Fixed Mobile Convergence Example: Avaya Mobile for Series 60 Avaya's Extension to Cellular integrates simply in Symbian phones Phones based on Nokia S60 2nd Edition Nokia 3230, 66xx, 7610 Panasonic X700, X800 Lenovo P930 Samsung SDH 720 Download the application from the web and install on phone !

Avaya Communication Manager Station Features Supported: 

Avaya Communication Manager Station Features Supported Enable/Disable Extension to Cellular Active appearance select Enable/Disable Automatic call back Call forwarding all Call forwarding busy/no answer Call forwarding deactivation Call park/unpark Call pick-up directed Block/Unblock Calling party number Conference on answer Drop Last Added Party Exclusion Held appearance select Idle appearance select Last number dialed Enable/Disable Send all calls Transfer on hang up Transfer to voice mail

What Can Enterprise FMC Give You ? Benefit 1: One Number - Work as if in Office: 

PSTN Mobile Network (GSM, CDMA, 3G/WCDMA/ CDMA2000) PRI/BRI What Can Enterprise FMC Give You ? Benefit 1: One Number - Work as if in Office Mobile phone functions as off-PBX bridged extension Mobile phone makes, receives, transfers calls through Avaya Communication Manager Media Servers Avaya Communication Manager Media Gateways

What Can Enterprise FMC Give You ? Benefit 2: Transparently Move Between Work Modes: 

PSTN Mobile Network (GSM, CDMA, 3G/WCDMA/ CDMA2000) PRI/BRI Media Servers Avaya Communication Manager Media Gateways What Can Enterprise FMC Give You ? Benefit 2: Transparently Move Between Work Modes

Slide36: 

Conference Bridge Avaya Meeting Exchange Without MultiVantage Mobile = International Mobile Call With MV Mobile = local Call IP Call What Can Enterprise FMC Give You ? Benefit 3: Reduce Cost for International Calls

What Can Enterprise FMC Give You ? Benefit 4: Be Mobile on Campus: 

Group call pickup using mobile phone What Can Enterprise FMC Give You ? Benefit 4: Be Mobile on Campus

Slide38: 

What Can Enterprise FMC Give You ? Benefit 5: Seamless Roaming with Dual Mode Phones Mobile Network (GSM, CDMA, 3G/WCDMA/ CDMA2000) PRI/BRI Media Servers Avaya Communication Manager Media Gateways Reduce cost of mobile communications while on enterprise campus

Always Reachable Sales Force: 

Always Reachable Sales Force One business number, one voice mail Consolidated call record, IP recording Productivity transparent of work location Integrated access modes