UCaaS

Avaya Shifts Focus to Larger Enterprises, Phasing Out Smaller Clients

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Avaya is refining its business strategy by concentrating exclusively on larger enterprises for its cloud-based contact center services. Moving forward, companies must have at least 200 agent seats to qualify for the Avaya Experience Platform (AXP). This shift is part of Avaya’s broader effort to enhance innovation and streamline customer experiences.

According to the company’s announcement, starting June 30, organizations that do not meet the 200-seat threshold will have to either transition to alternative solutions or cancel their existing subscriptions. While Avaya has hinted at new cloud-based and on-premises offerings, details remain undisclosed.

In addition to restricting access, Avaya is also discontinuing certain features. Beginning March 3, the platform will no longer support Avaya Voice Recording (AVR), making agent bundles with AVR unavailable. Furthermore, on March 1, integration with X within Social Media Direct Channels will be removed. The company is also terminating sales of Avaya SIP Trunking and Communications APIs (CPaaS) cloud services on April 28.

These strategic shifts come after a leadership change in 2024 when Patrick Dennis took over as CEO following Alan Masarek’s departure. Under Dennis’s guidance, Avaya has prioritized its top 1,500 clients, recognizing a missed opportunity in catering to larger enterprises. This restructuring has also led to significant layoffs in recent months.

Avaya has faced financial difficulties in the past, narrowly avoiding bankruptcy in both 2017 and 2023. The company’s new direction underscores its commitment to long-term sustainability by focusing on high-value customers while phasing out support for smaller-scale clients.

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