1. Small and Medium Enterprise Communications Product Strategy & Roadmap
Joe Scotto
Director, Product and Solutions Marketing

2. Key Topics: Small and Medium Enterprise Communications
Leadership
Vision
Portfolio Strategy
Roadmap
Avaya is now the #1 WW Leader
in small business communications
To be recognized by SME markets and channels as the provider of choice for delivering the best plug and play communications experience in the industry.
The strategy is to apply the key principles of simplicity, customer service and user experience in all of our portfolio and go-to-market activities.
The roadmap is about investment protection for all of the combined company’s products, innovation for the future, and a view of how we’ll get there.
Source: Canalys, Calendar 2008 (Line size: 20-99)

3. SME Markets: The Power of AvayaN
SIP Software technology
For SME Markets
Expert in SME: Proven Track Records
Focus: One of 3 Business Units
Trusted Innovation and Investment Protection
Strong Service Provider and Reseller Relationships
Simplified Packaging
For SME Markets
Avaya + Nortel = 17.7% share in SME
Next largest player is NEC with 11.8% share
Known Reputation for
“Evergreen”
Strong Reseller Base WW
& Avaya Connect Program # 1
Small Business
Communications WW1
Solid Track Record for Converging Platforms
1 Source: Canalys, Calendar 2008 (Line size: 20-99)

4. Global SME Market Leadership
Worldwide SME Unified Communications Product Market Opportunity ($End-User)
Global SME Telephony Market Share
Avaya + Nortel
17.7%
Nortel
7.4%
Avaya 10.3%
$4+ Billion
(Just Product)
Avaya Inc. and Gartner, Inc. are both owned in part by Silver Lake, a leading financial investment firm. Gartner research is produced independently by Gartner analysts, without influence, review or approval of their outside investors or shareholders. For further information on the independence and integrity of Gartner research, see Guiding Principles On Independence and Objectivity on Gartner’s website,
NOTE: Analyst estimates for Nortel results include LG-Nortel; Calendar 2008 reported results may be restated to exclude that (relatively small) portion of Nortel share
NEC 11.8%
Others
45.9%
Cisco
10.1%
2009
2010
2011
2012
2013
Alcatel-Lucent
7.5%
Siemens
7.0%
Source: Canalys, Calendar 2008 (Line size: 20-99)
Source: Avaya analysis based on multiple industry reports (6/09); SME= firms with <250 employees UC Applications include Contact Center, Messaging, Audio/Video/Web Conferencing
NOTE: Nortel results from industry analysts include results for LG-Nortel and other shipment activity that will be restated in developing a true baseline for combined Avaya-Nortel performance; Historical market shares may change. 4

5. Avaya Strategic Priorities For SME Markets
Simplicity
Customer Service
User Experience
Customer Benefit
Easy to understand,
to buy and finance
Solutions that help SMEs retain and acquire customers
Applications that are intuitive to use
Channel Benefit
Simple and profitable for channels to learn, sell, install, support
Differentiated value propositions and services that save time
Seamless integrations, EZ quote tools, roadmap influence (GRIP)

6. Investment Focus: Coverage Of Where Market Is Buying
TDM/Key Systems
Hybrid IP PBX
SIP Software
43% decline in (Dell'Oro)
Market nearly disappears by (Dell'Oro)
NEC and Samsung are leading players (T3i Group)
Double Digit growth in volumes returning in 2011 (Dell'Oro)
24% percent of SMBs say that they already have or are currently implementing a UC solution. (Forrester)
Significant growth projected through (Gartner)
SIP continues to gain strength as the dominant protocol used by all of the vendors playing in the VoIP market (IDC)
Transition
Declining
Growing
Projected Growth

7. Day One Portfolio: SME Communications
TDM/Key Systems
Hybrid IP PBX
SIP Software
Avaya PARTNER®
Avaya Integral 5
Avaya Norstar
Declining
Avaya IP Office
Avaya BCM
Growing
Avaya SCS
Projected Growth

8. The SMEC Roadmap Will Streamline for Simplicity, Focus On Innovation
Avaya Integral 5
Avaya Norstar
Avaya BCM
Avaya PARTNER®
For Sale Today
Avaya SCS
Avaya IP Office
2010
2011
PLATFORMS CONVERGE
All products remain for sale*
Investment Protection:
Products Will Converge with IP Office into best of breed solution
*Note: In addition, support policy includes 3 years of manufacturer support beyond any effective end of sale date, as well as 3 years of Avaya service support beyond end of manufacturer support.

9. BCM & Norstar Convergence With IP Office
Nortel Partners
What you like about BCM and Norstar stays
Nortel Installed Phones
Nortel Interface
Nortel Features

10. BCM & Norstar Convergence With IP Office
What you like about BCM and Norstar stays
IP Office DevConnect Eco-Systems
Nortel Partners
Avaya New & Installed phones
Nortel Installed phones
IP Office Management
Nortel Interface
IP Office Features (Resiliency, Mobility, etc.)
Nortel Features
IP Office Platform
You benefit from what is unique to IP Office

11. Avaya IP Office Ideal for Converging Portfolio and for SME Markets
5.0
IP Office 500
Single, Modular Platform
Scales to 384 users per system, 32 sites
Simple, role-based solutions
AGENT
POWER
USER
MOBILE
WORKER
3.0
4.0
6.0
7.0
Merlin Integration
PARTNER® Integration
BCM, Norstar Integration
Avaya AuraTM Integration
Integral Integration

12. Avaya Product Lifecycle Policies
All current SMEC products are available for sale throughout FY2010
No end-of-sale to be announced in FY2010 for any SMEC Nortel products
Major heritage Nortel products will have at least 9 months notice
Products have up to 6 total years of support following any end-of-sale date
Years 1 2 3 4 5 6
End of Sale Announcement
minimum 9 months
End of Product Orderability
End of Manufacturers Support (Software)
End of Manufacturers Support (Hardware)
Extended Hardware Support (optional, for purchase)
End of Extended Support 12

13. Investment Focus: IP Office and SCS Overview
Software Communication System (SCS)
IP Office
Hybrid IP PBX
Single, Modular UC Platform
Launched 2002
6,000,000 users WW
Managed on premise
Telephony-centric buyers
Voice Resellers
Service Providers
SIP Software
Open, Native UC Application
Launched 2008
Current deployment: <15,000 users
Managed in the data center
IT-centric buyers
Data Resellers
Regional SIs

14. Evolutionary Path: SME Communications Portfolio
Protect
Extend
Grow
Support of Nortel Phones on IP Office
Nortel management interface emulation on IP Office
Eco-system of technology partner migration
Nortel data management for migration
E.g. call log, PBX configuration
Feature Parity
Increased R&D investment to focus on new features
New talent, greater resources to focus on fewer products
Innovation and market differentiation

15. Evolutionary Path: For Partners
Protect
Extend
Grow
Protects installed base & Services revenue
Customers Can Stay Where They Are
Continue to Sell / Upsell
Extend their Expertise:
Add or expand IP office
Get field sales teams authorized to sell
Get technicians Fast-Track trained
Become an IP Office Expert:
Leverage DevConnect to deliver solutions
Expand to new markets – very small, mid market or verticals
Add SCS
Add Avaya AuraTM

16. How We'll Get You There: Helping Partners Achieve Business Value
Embrace all Channel Partners with Avaya Connect
Rapidly train Partners on the full Avaya portfolio to Extend and Grow all current systems
Extend
Grow
Protect
Accelerate SME partner services offers with Avaya technical expertise
New offer launches in Q1 2010
Backbone support
Extended warranty and advanced parts replacement
Avaya and Partner Services

17. Key Recommendations What It Means For Your Clients
Keep Recommending What You’re Recommending
BCM and Norstar: For Sale
Future Path For All Products
Convergence to the IP Office platform
Become An IP Office Expert
Sales, Design, Install, Maintain

18. Summary and Next Steps Summary Next Steps
New Avaya is #1 WW in Small Business
Strong portfolio, experience, innovation and reach
Buy today or tomorrow: You have a secured path to the future
All products are investment protected
BCM and Norstar features will converge with IP Office
Note: Combined manufacturer and service support policy is six years beyond end of sale of any product
Next Steps
Migration of BCM and Norstar Experience to the IP Office platform
Education and training
New promotions and programs

19. thank you For More Information:
Contact your Consultant Relations Manager