Avaya stock downgraded, Cisco blamed?
I've always considered Avaya Definity to be a superior product to Cisco CallManager. Both are IP-PBX platforms, both are
quite scalable; both support interfacing to legacy telephony and to VoIP using H.323, SIP, or whatever protocol suits
you. In the end, a Cisco solution might cost a bit more to integrate because of CallManager's highly-distributed
footprint, but these are both very capable systems.
Anyhoo, this analyst downgraded Avaya's stock today, citing a decline in service revenue and an increase in competition from Cisco in the VoIP sector. Well, let's face it. If you're Avaya or Cisco, the VoIP sector is really the only sector that matters. Still, Avaya maintains a very strong technology position--their product is still superior to CallManager. But does the world know this?
Does Avaya have a legion of certified Cisco-water-drinking yes-men (that is CCNEs) running around monster.com bragging on their product? No. Do they support open source initiatives (VOCAL) and strongly advocate interop testing with third-party products the way Cisco does? No. Hardly. In fact, when I was writing my first book, I was trying to get my hands on a low-end Avaya media server chassis to do some testing with, and their PR folks refused to send me one on account of "Avaya won't be able to control the manner in which our product would be tested".
Avaya, formerly AT&T, formerly somebody else---lose the old-school telco attitude and get with the program. If Wall Street can clearly see where you've gone wrong, your days may be numbered...
Anyhoo, this analyst downgraded Avaya's stock today, citing a decline in service revenue and an increase in competition from Cisco in the VoIP sector. Well, let's face it. If you're Avaya or Cisco, the VoIP sector is really the only sector that matters. Still, Avaya maintains a very strong technology position--their product is still superior to CallManager. But does the world know this?
Does Avaya have a legion of certified Cisco-water-drinking yes-men (that is CCNEs) running around monster.com bragging on their product? No. Do they support open source initiatives (VOCAL) and strongly advocate interop testing with third-party products the way Cisco does? No. Hardly. In fact, when I was writing my first book, I was trying to get my hands on a low-end Avaya media server chassis to do some testing with, and their PR folks refused to send me one on account of "Avaya won't be able to control the manner in which our product would be tested".
Avaya, formerly AT&T, formerly somebody else---lose the old-school telco attitude and get with the program. If Wall Street can clearly see where you've gone wrong, your days may be numbered...
Reader Comments
(Page 1)2. I'm a Cisco guy, I live and breathe their routers and switches. I'm also involved in an Avaya phone upgrade.
They are two different companies. Completely different. Cisco measure success on how happy you as a customer are. Avaya just takes the money and runs.
Cisco earns your trust, from the sales guys to the TAC. I don't care if their PBX is missing a few features, the question I ask is "who do I want behind me?"
Sean
Posted at 11:46PM on Feb 14th 2006 by Sean








1. Ted,
In order to understand why Cisco is still seen by many as the VoIP heavyweight, you need to look at the past. Years ago, Cisco took a leapfrog jump over Avaya and just about every other major player shortly after acuiring Selsius in '98 (deployed one of the first IP-PBX's). Tradiitonal telco's like Avaya & Nortel were still trying to figure out how to successfully incorporate their successful products like the Definity into a Data / VoIP World. Most of the corporate world was already hooked on Cisco's network products, which forged strong political relationships, and hey, now they're being rated as the top VoIP company. Several years later, Avaya and Nortel have caught up. Avaya's VoIP Product line leads significantly over Cisco's in worldwide market share (40% to 5%). Avaya wins many prestigious awards for their solutions as well. So, why do many still Cisco as the leader in this space? Several reasons, many companies lack the propper resources to do intensive testing, or research to see that Avaya has leap frogeed over Cisco. Many companies still work off their relationship with the incumbant partner (Cisco). Many companies try to minimize the number of vendors they deal with, and also figure by dealing all with Cisco, they can capitalize on volume equipment discounts. Should I go on, or do you begin to see the picture being painted. Don't get me wrong, I think Cisco makes a good product, both have their pro's and con's, but I think Avaya is getting wins in important areas, and their market share shows that.
Adam
Posted at 10:05PM on Feb 14th 2006 by Adam