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  • 7/31/2019 AVAYA Current Analysis

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    Quick Take

    Event Summary

    February 22, 2011 -- Avaya extended its Virtual Enterprise Network Architecture (VENA) to the campus network

    via a simple software upgrade to its Ethernet Routing Switch 8800 and 8600 chassis switches. VENA, based on

    the IEEEs Shortest Path Bridging standard, delivers faster time to deployment by greatly simplifying provisioning

    Intelligence Report: Avayas VENA Next-Generation Network Architecture: Not Justfor Data Centers

    Report Date: February 25, 2011

    Analyst: Musich, Paula

    Service:Hot Topics , Business Technology and Software

    Market:Cloud Services , Data Center , Enterprise Security , Enterprise Networking , Enterprise

    Security

    Competitive Positives

    Eliminating provisioning errors takes away a big pain point

    No forklift upgrade required

    Apps do not have to move to the data center to be virtualized

    Launch demonstrates VENA has staying power

    VENA tells an end-to-end story, not just a data center play

    Competitive Concerns

    NAC is a new, but not very welcome element of VENA

    Great independent data networking story, but where are the synergies?

    Some arguments for VENA in the campus ring hollow

    Installed base of customers who can take advantage of the simple upgrade is limited

    Standards are great, but only if others implement them

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    for new applications and services in the network.

    Analytical Summary

    Perspective

    Positive on Avayas extension of its virtual networking architecture to campus networks, because

    it gives customers a single, cohesive architecture that addresses network scaling and efficiency issues not only in

    the data center, but also in the rest of the enterprise. This is unique among the next-generation network

    architectures described by Avaya rivals.

    Vendor Importance

    Moderate to Avaya, because this is a follow-on to the VENA architecture introduction the

    company made late last fall, and it was hinted at then (see Avayas VENA Makes a Mark in the Data Center Fray,

    November 11, 2010.) Still, it demonstrates Avayas commitment to the architecture and sets the stage for

    additional supporting elements to come.

    Market Impact

    Moderate on the campus networking market, because while the VENA campus launch provides

    real promise for existing Avaya data networking customers, it is not at all clear that it will help Avaya move

    beyond that customer base.

    Competitive Strengths

    Competitive Positives

    Eliminating manual human error in provisioning is probably the biggest pain point for network operators in the

    current state of affairs when it comes to re-configuring the core of the network to accommodate major new

    applications. Studies have shown that operator error accounts for anywhere from 30% to over 50% of network

    outages, due to the complexity of that task. If VENA meets its promise of greatly reducing that occurrence,

    Avaya will significantly boost customer satisfaction and set itself apart from competitors.

    With a simple software upgrade, existing Avaya ERS 8600 and 8800 customers can begin to roll out the VENA

    architecture in campus networks. Avoiding a forklift upgrade is a competitive differentiator, and it reinforces the

    good relationship between Avaya and its data networking customers.

    Some applications (such as contact centers) do not live in the data center, but as enterprises look to virtualize

    them, they have to be moved to the data center. With VENA, those applications or services can stay put or be

    placed where they logically fit best. That resonates for existing Avaya customers, and Avaya is unique in that

    capability, although the company expects others to catch up.

    Avaya is doing a good job of keeping up the VENA drumbeat by following up fairly quickly on the architecture

    launch with deliverables. Such consistency is important, because it reinforces Avayas commitment to the

    architecture for customers and prospects. In addition, each successive VENA rollout puts the former Nortel

    struggles to rest and proves that Avaya is indeed a serious contender in enterprise networks.

    By jumping out ahead of competitors in extending its virtualization optimization architecture into campus

    networks, Avaya is in a better position to gain mindshare as a technology leader and set itself apart as a

    visionary in the brave new world of virtual networking. For the most part, rivals have focused their vision and

    architectures on the data center. This gives Avaya the high ground in looking after customers end-to-end

    requirements for simplified network provisioning as complexity increases.

    Competitive Weaknesses

    Competitive Concerns

    Avaya introduced a new element to the VENA vision, but one that will not likely be met with applause by

    customers and prospects. NAC is a fundamental part of the architecture, and it is called for in order to

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    authenticate users and assign them to the appropriate VLANs or virtual services networks. The much-maligned

    technology has not seen widespread adoption in the market, and it is more often than not a project that never

    got off the ground for many enterprises. Although Avaya believes its NAC technology, acquired with Nortels

    acquisition of Identity Engines, has great potential, and customers who have seen it gave it high marks, other

    issues have kept it on the drawing boards. NAC was one of the first projects to be shelved with the recession,

    and it is likely not the first to be put back into the queue.

    The launch of the VENA architecture late last year helped to establish Avaya as a true contender in the data

    networking space, rather than positioning the Nortel portfolio as an adjunct to Avayas UC, contact center, and

    business collaboration businesses. With this follow-on, however, Avaya is not really demonstrating the synergies

    that exist between those different sides of the business. That will become an issue down the road as Avaya looks

    to sell networking products beyond the installed base of existing Nortel data networking customers.

    Avayas arguments about why VENA in the campus is a good thing include more efficient delivery of new

    services via a few mouse clicks and the reduction in configuration errors, ensuring regulatory compliance and

    multi-tenant partitioning through traffic separation, and providing the only optimized end-to-end cloud

    architecture. For most enterprises, however, the only one of those arguments that resonates is the fast and

    error-free delivery of new services (or applications).

    Although it is a simple software update, only customers which have a premium maintenance contract get that

    upgrade for free. Still, at $9,995 for the list price of the premium license, the price is reasonable. Then again, the

    ERS 8800 is a new switch; thus, it has a limited installed base that can take advantage of that no-forklift

    upgrade.

    The value of SPB support is both flexibility and ease of deployment; however, the lack of broader vendor

    support negates some of the value of having a ratified standard, as it is not currently universally supported.

    Response & Recommendations

    Avaya should focus its messaging on what really matters to customers; today, that is being able to do more

    with less. Fast and error-free provisioning for new services should be the focal point of Avayas VENA in the

    campus messaging, and Avaya should expand on that in a way that brings it home for customers.

    Once customers have had a chance to work with the VENA deliverables, Avaya should move quickly to developreferences and case studies that show the real-world benefits on the architecture, including documented TCO

    benefits, reduced configuration errors and their associated downtime, faster time to deploy new applications, and

    so on.

    Avaya could not help but jump on the cloud bandwagon by highlighting how VENA simplifies creating private

    clouds. It would be unwise to emphasize private clouds, something that VMware is pushing, because the

    implementation of those comes with a lot of baggage and is already being skewered in the press. Customers are

    not in a hurry to go there.

    Avaya is fairly new at this architecture game, which Cisco has refined to the point of owning it. With VENA,

    Avaya would do well to remind customers what VENA is all about, clearly describing with each successive product

    launch how that particular element fits into its VENA vision. That will give the architecture greater credibility anddemonstrate its staying power in the market.

    Since Nortels bad times, rivals have been working overtime to poach those customers, many of which refused

    to jump ship. Avaya has clearly demonstrated not only commitment to the portfolio, but also strong innovation

    and focus on solving new challenges posed by virtualization as well as old problems such as those posed by the

    limitations of the Spanning Tree Protocol. Competitors would do better to focus on communicating the benefits of

    their own solutions to those problems to existing customers and greenfield prospects, rather than to continuing

    to try to lure away Avayas customers.

    Buyer Actions

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    Existing Avaya ERS 8600 and 8800 customers struggling with having to reconfigure the core of the network to

    accommodate major new applications or services and dealing with the production outages that occur when

    configuration complexity causes human error should evaluate the new VENA support and put it through a proof of

    concept. Avayas claims of six-click provisioning, if true, hold great promise in solving a serious operational

    problem.

    Customers and prospects interested in Avayas end-to-end VENA story should press Avaya to share its roadmap

    with them, especially as more and more of their applications are virtualized.

    Customers and prospects should keep in mind that a foundational element of the VENA architecture involves

    deploying NAC, an exercise many have avoided to date. That could be a deal-breaker if all parties affected by

    such a deployment are not in agreement.

    Analytical Perspective

    In this round of VENA news, Avaya emphasized the campus network, with a simple software upgrade for the

    8600 and 8800 core campus switches. The ability for existing customers to avoid a rip-and-replace scenario to

    gain the benefits of Avayas architecture in the campus is compelling. It is also clear that the architecture will be

    extended further out to the edge of the network into wiring closet switches, and Avaya officials publicly hinted

    that with VENA at the edge, there will be more partnerships.

    The VENA architecture, launched last November with a good deal of fanfare, helped to put Avaya and the former

    Nortel data networking business back on the map. It offers a compelling mix of standard protocols and

    proprietary enhancements that promise to solve both old Spanning Tree Protocol problems and new virtualization

    complexities. VENA not only includes IEEE 802.1 aq Shortest Path Bridging, which enables multiple active links to

    be utilized, but it also includes enhancements that enable more flexible network designs such as the ability to

    support Layer 3 extensions, route between the multiple Virtual Service Networks, and provide dual homing for

    devices connecting to the network fabric.

    This round of news peels the VENA onion down another layer, exposing another component of the architecture:

    NAC. Avayas NAC, based on the portfolio Nortel acquired with Identity Engines, allows users to be authenticated

    and assigned to the appropriate VLANs or Virtual Service Networks. While Avaya positions this as complementary

    to the other VENA elements, customers may not take the same view. NAC has not been widely adopted, largelybecause of incomplete products, competing standards, a poorly defined problem, and Ciscos internal conflicts

    and attempts to freeze the market.

    Other key elements not touched upon in this launch include Avayas Configuration and Orchestration Manager,

    which Avaya had earlier enhanced with a new Virtual Services Manager. The VSM enables centralized

    provisioning of VENAs Virtual Services Fabric and Virtual Service Networks and simplifies the Shortest Path

    Bridging configuration. Another promising tool in development, for now dubbed the Data Network Planner, will

    allow operators to create a VSN and it will graphically display where all the virtual networks exist and what their

    relationships are. It will also display how logical and physical networks map together.

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    re subject to change without notice. Current Analysis does not make any financial or legal recommendations associated with any of its services,

    nformation, or analysis and reserves the right to change its opinions, analysis, and recommendations at any time based on new information or rev

    nalysis.

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