VoIP Getting Bigger for Avaya

Avaya’s bid to acquire SIP application vendor Ubiquity was a tip-off that Voice over IP is becoming the center of importance at the enterprise telephony provider. Tuesday during Avaya’s earnings call the company confirmed that focus, announcing that it had sold more than 1 million IP phone lines for the third straight fiscal quarter, showing that corporate adoption of VoIP shows no signs of slowing.

While Avaya’s overall results seemed in line with analyst expectations, the IP numbers are increasing lines in the sand pointing toward an overall move from TDM to IP in the corporate communications arena. Avaya also said that investments like the Ubiquity buy will help it increase the integration of communications and business applications, a direction Avaya said it will look to for growth beyond its traditional telecom-supply businesses.

During the conference call Tuesday, Avaya gave an example of some early work in this direction, claiming it had helped a manufacturing company build direct communications functionality into a supply-chain application, that allowed the application to communicate levels of inventory and trigger replenishing actions. By “communications-enabling” such core business apps, Avaya is seeking to differentiate itself in the telecom business while seeking bigger margins and more overall growth.

“We’re embedding communications into the fabric of our customers’ core business,” said Avaya president and CEO Lou D’Ambrosio, who added that Ubiquity is “an important element as we extend that functionality in a SIP environment.” Expect to hear more IP telephony news when Cisco announces its financials Feb. 6.