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Avaya CEO Jim Chirico On Cloud Growth And How Partners Are Doing ‘Quite Well’ With Subscriptions

While admittedly late to the game with subscriptions, Avaya is making up for lost time, due in part to the global pandemic shifting IT decisions all over the globe, the vendor‘s longtime CEO Jim Chirico told CRN.

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No Slowing Down 

Unified communications powerhouse Avaya announced that it beat its own records around software, cloud and subscription sales this week during its Q3 2020 earnings call. That‘s because the COVID-19 pandemic, which forced most companies and millions of employees globally to work from home, has put pressure on businesses to quickly transform their IT and communications strategies. These businesses don’t have years to make those changes anymore, Avaya's CEO Jim Chirico told CRN.

Avaya‘s software and services accounted for 89 percent of the company’s third-quarter revenue. About 60 percent to 70 percent of that revenue was driven by partners, Chirico said. Recurring revenue also climbed 5 percent year over year, adding up to 64 percent of the company’s overall revenue.

Chirico talked to CRN about how the pandemic impacted the company‘s third quarter, Avaya’s unprecedented growth in subscriptions this year, and how partners can keep making money on video and collaboration tools.

Here are excerpts from the conversation.

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