RingCentral Inc. and Avaya Holdings announced closing of their early October alliance.
Avaya and RingCentral will introduce a new solution, Avaya Cloud Office by RingCentral (Avaya Cloud Office), which will be the exclusive public Unified Communications as a Service (UCaaS) solution marketed and sold by Avaya.
Avaya Cloud Office combines RingCentral’s UCaaS platform with Avaya’s technology, services and migration capabilities to create a highly differentiated UCaaS offering. The companies expect to launch Avaya Cloud Office in the first quarter of next year.
RingCentral is contributing US$500 million to its partnership with Avaya, including a $125 million investment of 3 percent redeemable preferred equity that is convertible at $16 per share and an advance of $375 million primarily in stock for future payments and certain licensing rights.
In October, RingCentral had announced that it will enter into a commercial agreement with Avaya Holdings, thereby making it an exclusive provider of UCaaS solutions to Avaya. The vendors also decided to jointly develop programs to leverage Avaya’s global sales and partner network, as well as build automated technologies for seamless customer transition to RingCentral’s global UCaaS solution.
This collaboration will enable Avaya’s customers to leverage their existing investments, while reducing migration complexities and timeframes. Avaya Cloud Office is expected to provide an attractive total cost of ownership for Avaya customers and favorable compensation for Avaya and its partners.
“Our game-changing partnership with RingCentral and the introduction of Avaya Cloud Office have generated tremendous excitement with our partners and customers,” said Jim Chirico, Avaya president and CEO. “Avaya Cloud Office is a continuation of our stated strategy to be a cloud-first company, and we believe the addition of this UCaaS solution to our portfolio is a key differentiator that provides customers with a seamless journey to cloud communications.”
“As a leader in cloud communications, we’re laser-focused on bringing the power of the cloud to more enterprise customers,” said Vlad Shmunis, RingCentral founder, chairman and CEO. “With the growth of the mobile and distributed workforce, cloud communications solutions can deliver the capabilities enterprises need to effectively connect with customers, partners, and employees. This strategic partnership accelerates the transition of one of the world’s largest on-premise unified communications installed bases to the cloud.”
No comments:
Post a Comment