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Meanwhile, Avaya vowed to simplify its global pricing models, making it easier for partners to articulate licensing structures to customers and speed up the sales process.
"I think everyone agrees that the [pricing] structure we have been working these past years has not been optimal," said Avaya's Mitchell. "As of today, Avaya currently has over 200 separate price lists that vary based on geography, partner type and portfolio."
Mitchell said much of the complexity stems from the fact that heritage Nortel products -- which Avaya acquired in 2009 -- are still priced separately from heritage Avaya products. What's more, the price point on these heritage Avaya products can vary depending on regional, national or global pricing lists.
According to Mitchell, Avaya currently has "hundreds of thousands" of SKUs that are bucketed into over 1,400 material price groups for partner discounting purposes. This means distributors have to keep track of more 1,400 discounts to help partners understand what their true buying price is.
"One of the first things I realized when I started my work in channel transformation was that this madness simply had to stop," Mitchell said. "We needed a consistent and transparent structure that would allow all of our channels to calculate buy price quickly."
To do this, Mitchell said Avaya is working to integrate all of its heritage Avaya, Nortel and Radvision products into a single pricing model, making it easier for partners to navigate. The company also confirmed it will roll out Avaya OneSource, a portal that consolidates product and pricing information into a single view for partners, this quarter.
"For the last two quarters, I've been telling you that Avaya OneSource is on the way," Mitchell said. "This is the quarter where the rubber meets the road."
ROI Network's Hiebert said Avaya's commitment to simplifying its pricing structure is already evidenced through its new licensing models for Aura UC solution.
The model is made up of three unique licensing packages: an entry-level "foundational" package, a mobility package and the full collaboration package, complete with video and multi-modal conferencing.
This simplified pricing structure, Hiebert said, makes for an easier sell for partners, and it puts Avaya's pricing model more on par with those of competitors like Cisco and Microsoft.
"If you wanted to implement a unified communications solution, historically, there were multiple apps you needed to purchase and multiple pieces of hardware and multiple pieces of maintenance," Hiebert said. "This [new model] is a lot easier to order and provision."
Hiebert added that the new licensing model does put "slight" pressure on partners to become certified to sell Avaya's newer UC applications, as they will need to be certified for each individual application within the licensed package before being able to sell it.