#Converge2014: Avaya CEO Kevin Kennedy Keynote Speech at IAUG Converge 2014


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On Tuesday, April 29, Avaya CEO Kevin Kennedy delivered the keynote speech of the IAUG Converge 2014 conference. He shared that Avaya is focusing on simple, open, mobile, scalable network infrastructure and products.

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  • On December 1, 2013, Kari Rene Hunt Dunn met her estranged husband in a Marshall, Texas hotel room so that he could visit their three children, ages nine, four, and three. It was during that encounter, where Kari’s husband allegedly forced her into the bathroom and began stabbing her.  At this point, Kari’s nine-year-old daughter reacted and did exactly what every child is taught to do in an emergency. She picked up the closest phone and dialed the digits 9-1-1. But instead of hearing the voice of an Emergency Dispatcher, she heard what she described as ‘static’. Knowing that her mother desperately need help, she dialed 9-1-1 again.  And again. And again. All in all, she dialed 9-111 four times.  It was then when this brave little girl decided she needed another plan, and rushed her siblings out to the safety of the hallway where she met hotel cleaning staff, but they did not speak english. She found refuge at the door of another room, where she told them of the horror happening to Kari. Tragically, Kari died as a result of this vicious attack, despite that fact that Kari’s daughter behaved heroically under horrific circumstances.  Why did the calls fail? The answer is unfortunately a simple one. In that hotel, you needed to dial 9 9-1-1. While this was a dial plan issue decades ago, most modern systems, certainly all of Avaya systems, are able to accommodate this as well as Crisis Alert which notifies building staff when a device places an emergency call.  This functionality is not an ‘add on’, this functionality is not an extra feature you have to buy. Basic 911 functionality is a part of the core feature set, and it just needs to be provisioned.  You may think that there is legislation that dictates such an important feature is available, but unfortunately one does not exist.  Commissioner Pai has taken up this cause with a vengeance, and based on responses from the American Hotel & Lodging Association there are literally 10’s of thousands of Hotel properties where a guest dialing 911 from their hotel room, will not reach an emergency operator. We intend to join Hank Hunt helping him make a single voice a majority for what is right, and simple to do. You can show your support by signing the Change.Org petition at change.org/KarisLaw and join nearly 500,000 others that believe the number we are taught to dial in an emergency, 9-1-1, is a number that actually works in an emergency, regardless if you in your home, at work or school, or anywhere there is a telephone.
  • More stats:97% of all Fortune 100 companies are running Avaya SolutionsOur  managed services renewal rate averages over 95%Avaya invests 17% of product revenue in R&D – a figure well above the industry average of 15%.Support CSAT up 12.9% in last 12 monthsNPS up 60.5% in last 12 monthsAvaya IP Office offers 32% average TCO savings compared to ShoreTel Unified Communications PlatformAvaya IP Office offers up to 33% lower maintenance costs compared to ShoreTel Unified Communications PlatformAvaya IP Office delivers 41% less energy consumption for phones compared to ShoreTel Unified Communications Platform.Scopia is 7 times faster to use than PolycomRealPresenceHosted IPT and UC as a Service (cloud) market forecast:  $7.6B growing to $10.3B at 15.6% a year.  (This is more aligned with AvayaLive.Connect and our dedicated hosted IPT/UC deployments and excludes  web conferencing and video as a service.)Avaya is #1 in Contact Center/ACD with 30.5% global market share, 13 points ahead of #2 Genesys, also the leader in all regions of the worldAvaya is #1 in Mobile Voice and UC Client with 28.89% global market shareAvaya is #3 in Video Conferencing with 6% global market share
  • Context: with more than XX patents, Avaya brings a number of leading edge developments, technologies, operations and services to the industry including a software-defined architecture that is easy to integrate, manipulate, and mobilize according to customer needs; a network for now that is app-friendly, private cloud implementation for security, privacy and compliance; and high definition-low bandwidth video conferencing
  • As information technology evolved, historical inflection points occurred Throughout the history of computing through innovation we have been able to drive out cost and complexity of the previous architecture by overcoming the boundaries of that architecture . We are at another inflection point where we will be driving out cost and complexity by overcoming the boundaries between resources and applications Increasing complexity and cost drove innovation to overcome boundaries and limitations New ways of networking have, over time, drastically simplified and accelerated systemsMainframes gave way to packet networks that connected multivendor devices within a corporationThe Internet created a network of networks which allowed information to pass beyond corporate boundariesWe are at a new inflection point, where the challenge is to enable the network and applications to work together as an integrated systemThis challenge is driving the need for a new network architecture – the Intelligent Information Network
  • Click one social media comes up: 58.6% of the devices were smart phones: Click two Mobility and Video come up and click three Network performance comes up. Highest traffic for closing ceremonies was when mascot appears, waving goodbye: (200 Mbps) then again at 9:15 when piano player starts (225 Mbps) This was for the Olympic family, not spectators. Breakdowns of devices used at Olympics35.5% of PCs5.8% tablets58.6% smartphones
  • First Click: What technology looked like in 2014 and On second click: what technology would have looked like back in 2009…bullets come up with it. but the stunning fact of sochiolympics was: we could not have built the sochi network with the technology of 4/5 years ago.and if it had been tried, the reality is...it would have cost: three times more in capex3 x more hw5x more provisioning stepsin the end we had only 6 service requests, no down time and helped surveillance and move when things needed to change.If you have 8 yr old technology, you are likely in the drama i mentioned earlier, mired by complexity.
  • Click One:Status Quo: Multiple TiersClick two: Multiple protocolsClick three: Multiple resiliencyClick four: Hop by hopClick five : Fabric ConnectClick six: What customers are saying Big message: Cap/Grow!!!!Over the last few decades customers have build networks using various protocols attempting to build a highly resilient network to support business grade applications. While one can debate if we have or not done a good job at achieving this, bottom line is it is highly complex and very fragile, any layers of protocols mis-behaving can cause an entire network meltdown and have a huge business impact representing loss revenues and potentially even customers.  Avaya has solved this with its Fabric Connect, next generation architecture available now that accomplishes with one protocol what used to required 10 or more !!!
  • Avaya Changing the Social Media Landscape for the Olympic FamilyTiming/scoring results seen are carried by the Avaya networkWhen officials call for a video replay they are using an Avaya handsetStories, photos or videos by on-site  journalists have been enabled by Avaya’s networkMedal ceremonies shown live on an IPTV screen from the Olympic Village – has been supported by Avaya’s network
  • #Converge2014: Avaya CEO Kevin Kennedy Keynote Speech at IAUG Converge 2014

    1. 1. Directions, Choices and Outcomes In open, mobile, enterprise collaboration Kevin Kennedy President and CEO
    2. 2. www.change.org/KarisLaw
    3. 3. Reinvention is a CLIMB Manage the Work Manage the Business NEW INFLECTION POINT 2010 2011 2012-2013 EBITDA 16% Gross Margin 50% Net Promoter n/a Rev / Employee $267K EBITDA 18% Gross Margin 53% Net Promoter n/a Rev / Employee $298K EBITDA 19% Gross Margin 54% Net Promoter 32 Rev / Employee $305K 2013-2014 EBITDA 20% / n/a Gross Margin 56% / n/a Net Promoter 41 / n/a Rev / Employee $330K / n/a
    4. 4. 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
    5. 5. Investments and Alignment  Go-To-Market  Business Process Improvements  Innovation / Product / Solutions / Services © 2014 Avaya, Inc. All rights reserved.
    6. 6. 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-Market
    7. 7. Now  9x fewer servers  32% lower TCO Product Reinvention for Mid-Market © 2014 Avaya, Inc. All rights reserved. Then
    8. 8. 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 © 2014 Avaya, Inc. All rights reserved. Collaboration Environment
    9. 9. Industry Drivers © 2014 Avaya, Inc. All rights reserved. Purpose Driven Enterprise Consumerization of Enterprise Application Driven Network Next Wave Productivity On-Ramp / Off-Ramp Social Enterprise Security and Integration Virtualization Cloud Navigating important industry transitions
    10. 10. New Architectures—Drive Industry Inflection Points © 2014 Avaya, Inc. All rights reserved. NEW NETWORK ARCHITECTURE Cloud Design is focused on the END-USER BYOD Multimode Multimedia App-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 PROPRIETARY NETWORK PBX Design is focused on the CENTRAL switch
    11. 11. 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 © 2014 Avaya, Inc. All rights reserved. Facetime WhatsApp Skype Twitter Google Vkontakte Instagram Facebook iTunes Dropbox * 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
    12. 12. 2014 2014 Sochi Winter Olympic Games © 2014 Avaya, Inc. All rights reserved.  2-3x HW, CAPEX  5x more provisioning steps  6 9’s availability CAPEX Provisioning What would Sochi look like with prior art?
    13. 13. What customers are saying… Case Study FasterNetwork Recovery Case Study Faster Time-to-Service Case Study Implementation Time X X Prior Art Fabric Connect Complexity Mirrors the Architecture
    14. 14. 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
    15. 15. Summary  Thank You!  Investing to Serve You  Investing to Grow  Choices Exist Today for an Application Enabled Future We want to hear from you!
    16. 16. Imagine what we can do!