Directions, Choices and OutcomesIn open, mobile, enterprise collaboration

Kevin Kennedy

President and CEO

www.change.org/KarisLaw

Reinvention is a CLIMBTransformation Results

Manage the Work

Manage the Business

NEW INFLECTION POINT

CrisisLeadership

ImprovementMetrics

Benchmark

2010

2011

2012-2013

EBITDA16%Gross Margin 50%Net Promotern/aRev / Employee $267K

EBITDA18%Gross Margin 53%Net Promotern/aRev / Employee $298K

EBITDA19% Gross Margin 54% Net Promoter32 Rev / Employee $305K

2013-2014EBITDA20% / n/aGross Margin 56% / n/aNet Promoter41 / n/aRev / Employee$330K / n/a

Transformation Outcomes

#1 in mobile

voice and UC Client

NPS up 60.5%

Managed services renewal rate over

95%

# 1 in Telephony Systems

8 out of 10 people connect

on mobile

© 2014 Avaya, Inc. All rights reserved.

Investments and Alignment

Go-To-Market

Business Process Improvements

Innovation / Product / Solutions / Services

Investments and Alignment

TCV

Time

Avaya Private Cloud Services

Business Process Improvements

Q4FY13 TODAY Q4FY14

Product Quote Cycle-Time 2-3 days < 1day < 1 hour

Renewals Quote Cycle-Time Weeks Weeks < 1 hour

APS Quote Cycle-Time 53 days < 8 days < 7 days

Product Order Create Cycle-Time 6 days < 1 day < 1 day

Contract Create Cycle-Time Weeks Weeks < 1.5 days

Special Bid Approval Cycle-Time 3 days 2.6 days < 1.5 days

IP Office-Led New Market

400K+ IPO Units

10K+ Customers

Time

Go

-To

-Mar

ket

© 2014 Avaya, Inc. All rights reserved.

Now

9x fewer servers

32% lower TCO

Product Reinvention for Mid-MarketThen

© 2014 Avaya, Inc. All rights reserved.

Developer POV Dynamic Team Formation

Personal Assistant Plantronics Snap-in Real Time Speech Click to call CC Work Assignment Automated Chat WebRTC Authorization of

mobile end points Co Browser Real Time Dashboard Call Recording Presence ACC Controls

Integration Points Google Glass Google Docs Google Hangouts MS Lync Cisco Jabber Plantronics Scopia Avaya Aura SFDC Siebel Epic

Application Enablement

Collaboration Environment

© 2014 Avaya, Inc. All rights reserved.

Industry Drivers

Purpose Driven Enterprise

Consumerization of Enterprise Application Driven Network

Next Wave Productivity

On-Ramp / Off-RampSocial Enterprise

Security and Integration

Virtualization

Cloud

Navigating important industry

transitions

© 2014 Avaya, Inc. All rights reserved.

New Architectures—Drive Industry Inflection Points

NEW NETWORKARCHITECTURE

Cloud

Design is focused on the END-USER

BYOD MultimodeMultimediaApp-Centric

We are HERE

Internet

Design is focused on the GLOBAL

network

NETWORK OF NETWORKSPACKET

NETWORKS

Client / Server

Design is focused on the LOCAL

network

PROPRIETARYNETWORK

PBX

Design is focused on the CENTRAL

switch

© 2014 Avaya, Inc. All rights reserved.

8:00pm 10:30pm * Measured during the closing ceremony.

54 Terabit Capable backbone

3:1 Peak to Average traffic growth

100% up time

Driven by an Olympic Network Performance

Avaya Enables Winter Olympics “Firsts” in App Delivery

FacetimeWhatsApp

SkypeTwitter

GoogleVkontakteInstagramFacebook

iTunesDropbox

* Measured during the closing ceremony.

Social Media

Up to 120K Mobile Devices

Up to 3 Devices Per Person

400mb/sec Video Streaming to Smartphones

Mobility

36 HD IPTV Channels

1,500 HD TV Screens

20ms Recovery Time

Video

© 2014 Avaya, Inc. All rights reserved.

2014

2014

Sochi Winter Olympic Games

2-3x HW, CAPEX

5x more provisioning steps

6 9’s availability

CAPEX Provisioning

vs.

What would Sochi look like with prior art?

What customers are saying…

Case Study

100XFaster Network

Recovery

Case Study

20XFaster

Time-to-Service

Case Study

1/10Implementation

Time

X

X

Prior Art Fabric Connect

Complexity Mirrors the Architecture

Primary Data Center

Mountain Media Center

Krasnaya Polyana

Secondary Data Center

Similar to running 3 Super Bowls for 17 days straight!

A Choice: Seven Virtual Networks, ONE Fabric

IPTV Service

Games Network

Unified Communications Service

Organizing Committee Service

WiFi Services

Media Transparent LAN Services

Secure Management

Summary

Thank You! Investing to Serve You Investing to Grow Choices Exist Today

for an Application Enabled Future

We want to hear from you!

Imagine what we can do!