November 2012 | Cancun, Mexico Karl Soderlund Vice-President Americas Channel Sales

Agenda - My Vantage Point: Strength of the Avaya Channel Days: Foundation for Success - Driving Success in FY13 - Winning Big IP Office – Brian Murray Radvision - Patrick Scott Networking – Dave Fraser - Setting Expectations During Our Time Together

Why I’m (still) Happy to be Here November 2012 | Cancun, Mexico

FY12: A Tale of Two Avayas  Dramatic Programatic Changes  Quality Issues  Mentality: “Us v. Them”  Sentiment: Lethargic  Groundswell of Direct Conflict  Dramatic Programatic Changes  Quality Issues  Mentality: “Us v. Them”  Sentiment: Lethargic  Groundswell of Direct Conflict  Program Consistency & Predictability  Best in Class Mid-Market Technologies  Mentality: “Strategic Alignment”  Sentiment: Bullish  Conflict is exception, not the rule  Program Consistency & Predictability  Best in Class Mid-Market Technologies  Mentality: “Strategic Alignment”  Sentiment: Bullish  Conflict is exception, not the rule

Works in Progress

Continuing to Raise the Bar

Re-Structured Channel Marketing Unified SME & ENT Channel Orgs Aligned distribution under US Channel Leadership Simplified Sales/Channel Territories Streamlined & Enhanced Support

Driving Partner Profitability New Customer Incentive Launch new incentive to drive net-new with our Platinum Partners NEW! Deal Registration Higher payouts for strategic products. Inclusion of SME, Video & Data ENHANCE Grow Right Inclusion of Video & Data (SME already included) ENHANCE Better aligning our program benefits to incent behavior and reward results

Investing in Our Partners Actions Speak Louder Than Words Created IPO 8.1 / Networking Demo Kit Soft Bundles Funded 120 Demo Kits for Partner field offices Funded 31 SME & MM Appointment Setting Campaigns Demo equipment & training for Wave I & Wave II Partners Q1 Appointment setting campaigns for Wave I partners 23 hand-picked partners Additional support from Avaya teams Strategic planning meetings and path to success plans Bounce Back Radvision Demo Kits IPO Demand Generation Leveraging Avaya’s Inside Sales Team to uncover new opportunities Delivered 159% more BANT qualified leads this year: 13,996 in FY % of all Avaya- generated leads are distributed to partners Qualified Leads

FY13: Tenets for Success Alignment Alignment Teamwork Teamwork Activity Activity

Organizational Alignment Karl Soderlund Channel AMs Channel SEs Channel Networking Channel Video Distribution Business Development Karl Soderlund Channel AMs Channel SEs Channel Networking Channel Video Distribution Business Development John Dilullo Americas Sales John Dilullo Americas Sales Tom Mitchell Global GTM and Enablement Tom Mitchell Global GTM and Enablement Avaya Learning Recruitment On-boarding and Enablement Cust. Segmentation / White space Avaya Connect Global Accounts MNC Accounts Major Accounts Customer Focused High Touch Account Control with growth in critical customers ! Market Focused Broad coverage driving growth in strategic areas Communications ! NOTE: This will not diminish the channel role in large accounts

Focus on: – Selling newer technologies to existing customers (e.g. Data, Video) – Hunting for new sites or competitive sites within existing customers (e.g. US Deal Reg) – Hunting for new customers (e.g. US New Customer Incentive) – Selling higher margin technologies to existing and new customers (e.g. US Grow Right) – Selling retail maintenance services in the US (e.g. US maintenance commissions) Two Defined Sales Motions Fuel Growth New Technologies to Existing Customers New Customers

A Territory Model for Teamwork  TAMs are “quarterback” for territory  TAMs leverage CAMs and Partners for demand generation and customer coverage  TAM accountable for territory growth – with and through legacy and new partners  TAMs are “quarterback” for territory  TAMs leverage CAMs and Partners for demand generation and customer coverage  TAM accountable for territory growth – with and through legacy and new partners Desired Objectives Future State Customer Avaya Partner Partner Sales IS / Mkt / Svcs Avaya Cam TAMTAM  TAMs focused strongly on End Users  Partners used for pure fulfillment – not leverage  Avaya Channel CAM used for deal administration  Non-existent TAM-to-Partner alignment – other than deal processing.  TAMs NOT involved in Partner recruitment or enablement  TAMs focused strongly on End Users  Partners used for pure fulfillment – not leverage  Avaya Channel CAM used for deal administration  Non-existent TAM-to-Partner alignment – other than deal processing.  TAMs NOT involved in Partner recruitment or enablement Current State Customer Partner Partner Sales TAMTAM Avaya IS / Mkt / Svcs Avaya Cam

Increased Activity = Increased Results

Looking Forward: What You Can Expect

Where We Are Winning... How We Are Winning.. Where We Are Winning... How We Are Winning... IP OfficeRadvisionNetworking

IP Office New York Not-for-Profit $97,000 40% Margin Opportunity: Customer looking to replace their legacy Definity system. The CIO wanted to compare the 3 alternatives: Avaya, Cisco and Shoretel. They issued a Mini RFP asking all 3 companies for an overview and demonstration. Customer Evaluation: - Cisco was eliminated due to pricing (double) TCO - Shoretel brought in their demo kit & impressed the client -Avaya’s presentation was done at the EBC. client was very impressed with IPO Server Edition and how all of the client’s requirements were covered. Avaya Differentiators: Conferencing capability built in (big leg up over Shoretel) Avaya’s Mobility and BYOD Solutions (One-X, Soft phone, Flare) Pricing: Leveraging Avaya promotions (777), the Avaya proposal 20% less Decision: Feature functionality with conferencing and the price solidified the client’s decision to purchase Avaya. Publishing Company $165,000 50% Margin Opportunity: Customer had a CM4 solution including Intuity that was end of lease on a 5 year FMV lease. Existing solution headquartered in NYC with an LSP in Los Angeles. Total station count is 350 stations and interested in OneX Mobile. Financials: End of lease buyout from AFS was approximately $120,000; Upgrade to CM6 and Aura Messaging was an additional $120,000. Total investment to keep the CM was $240,000 plus annual Support Advantage. Proposal: Partner positioned an IPO with all new endpoints. In addition, maintenance on the IPO was 40% less per year and OneX Mobile included presence making it more feature rich on IPO than CM. Decision: This was a finance driven decision The IPO closed in two weeks.

Revenue: ~$218,000+ Install (AV Integration) & Services Competition: Cisco/TAA (Incumbent video) Channel : Avaya Connect Partner Why We Won: Understanding Business Drivers. Consulting to identify the key business processes coupled with solution selling, and a compelling TCO. Examples include: “Ask and Expert” virtual support, B2B simplicity, Board of Director and Leadership meeting support. Vendor Agnostic Approach. Our ability to present an “end to end” solution with multi-vendor interoperability to leverage installed assets with goal to upgrade an additional 17 Branch locations in Pricing/Solution Strategy. Bundled strategy with management (iView) solution to support mixed environment and be supported on VM WARE environment. This coupled with Scopia Mobile and Net Sense forced competitors hand while exposing high cost of sale for similar offering. Our Dynamic (4:1 ) MCU port support for Scopia illustrated scale of offering as Bank grows while managing bandwidth assets where possible.. Achieved increased productivity, ease of business while increasing customer service. Video Collaboration Win: Mid Size Regional Bank Radvision Customer Business Issues Pre-Sale Installed Environment Avaya- Radvision & Partner Solution

Networking Sold at list 18% margin 25% margin

Mutual Expectations My Commitment to You Listen Listen Engage Engage Take Action Take Action Listen Listen Engage Engage Take Action Take Action My Ask of You Don’t accept the status quo Don’t accept the status quo Drive for growth Drive for growth Hold each other accountable Hold each other accountable Don’t accept the status quo Don’t accept the status quo Drive for growth Drive for growth Hold each other accountable Hold each other accountable