July 23, 2014

1. From Servers to Soccer Moms: The Consumerization of TechnologyBob WilliamsSenior Manager,Midmarket Segment Marketing July 23, 2014

2. Agenda • Background • Consumerizationof Technology • Major Trends • How Avaya is Responding

3. Bob Williams Multiple Roles in the Technology Field • Education: Stanford & UC Boalt Hall Law School • Lawyer, Venture & Public Fin. – Riordan & McKenzie • Investment Banker – Fitger & Co. • Startup CEO – Conversive, Inc. • Midmarket Segment Strategy – Avaya, Inc. Forrester, Info Workers Will Erase The Boundary Between Enterprise And Consumer Technologies

4. Consumerization of Technology The Mega-Trend

5. Consumerization of Technology Changing Business Technology Acquisition, Deployment & Use • Single-Purpose • Location-dependent • Infrastructure dictates experience • IT provisions for all • Multi-threaded • Mobile, virtual • End user customizes experience • End user buys From: To:

6. Consumerization of Technology – IT Managers • Here’s our midmarket tech buyer, courtesy of a thread in the Spiceworks community… “Myself in particular, I am the sole IT Admin for a medium sized construction contracting business. However, I handle everything from Networking, Security, Help Desk, Application Support , Server Administration dealing with Virtual and non-virtual boxes , Managing exchange servers, Website and FTP development, Print services, pretty much anything you can think of, as-well as Contract work for certain CCTV projects dealing with Juniper switches. I myself, am having trouble putting a label on myself…”

7. The Four Major Trends How Consumerization is Taking Place

8. Four Important Forces areChanging the Marketplace Access from Everywhere Shared Experiences Social Mobility Big Data Cloud Massive & Predictive Resource Sharing

9. Trend 1: Mobility Work, play and communicate in the palm of your hand

10. Smart Phones Go Mainstream in 4 Years Over 50% of US Adults as of 2013

11. Mobility is Changing the World • Mobile phones will exceed world population in 20141 • 40% of US Information workers regularly work remotely2 • Info workers typically use at least 3 different mobile devices3 • 40% identify mobile phone as their primary business device4 • 60% of Info worker devices are both business & personal5 • In 2014, sales of smartphones and tablets will exceed PCs by 8:16 1. http://www.cable.co.uk/news/gsma-says-mobile-connections-will-match-world-population-by-year-end-801723483/ 2. (Forrsights Workforce Employee Survey, Q2 2012) 3. Avaya Survey of Consumers in US and UK. 4. Frost and Sullivan, Boost the Bottom Line with Mobile UC; 5. Forrester, “Info Workers Using Mobile And Personal Devices For Work Will Transform Personal Tech Markets” February 22, 2012: 6. http://techcrunch.com/2014/01/07/gartner-2-5b-pcs-tablets-and-mobiles-will-be-shipped-in-2014-1-1b-of-them-on-android/

12. BYOD Empowers End Users Information workers move into the driver’s seat • Using a growing variety and number of devices to get work done. • Bringing their own technology to work or using it for work • Blending work and personal tasks and devices • Embracing vendors new to enterprise IT, such as Apple and Dropbox • Empowering themselves to invent new business tactics and strategies Forrester, Info Workers Will Erase The Boundary Between Enterprise And Consumer Technologies

13. Trend 2: Social Networks Sharing opinions & experiences

14. Social Media not just for Kids http://www.smartinsights.com/wp-content/uploads/2013/12/2014-social-media-stats.png

15. Social Media Changing Sales & Service By 2017, 80% of Fortune 500 companies will have an active customer community, up from 30% today. • Buyers are now 50% of the way through the decision process before they ever speak to a salesperson • 80% of B2B customers follow social media content • 32% of B2B customers create social media content, including ratings, reviews, blogs & tweets • Social Media drives new service expectations

16. Trend 3: Big Data Tracking & Predicting

17. Data & Analytics • Big Data spending is exploding, growing by 30% in 2014, to $14+ billion. • Big Data is focused on further enabling and monetizing social and commercial interactions • Google ads are an example Big Data at work on your click-stream • Data is now cloud-enabled

18. Big Data =Transactions + Interactions + Observations http://hortonworks.com/blog/7-key-drivers-for-the-big-data-market/

19. Big Data Powers the Net, Watches You Online Data Powered: • Firefox Lightbeam Reveals: Ebay: 650 million items, predictive 30 3d party sites connected to browser when viewing CNN Dropbox: 300 million users eHarmony: 26 million users, predictive

20. Trend 4: Cloud Computing & Deployment Strategies

21. Where is the Cloud? • Personal Data & Applications • Publicly-Hosted Data & Applications • Privately Hosted Company Data & Applications Corporate cloud spending will exceed $100 billion, growing by 25% in 2014

22. Cloud Adoption is Slow for Small Business (< 100) • Email is most popular • Data backup, personal productivity are next • 10% is maximum rate of adoption • Most apps 5% or less adoption rate

23. Midsize Businesses Adopt More Cloud • MSFT Office 365 top application – 27.1% • Median adoption 16% • Top 10 apps all over 10%

24. Enterprise Businesses Adopt Most Cloud • MSFT Office 365 top application – 28% • Median adoption 22% • Top 10 apps all over 20%

25. Who Else Likes Cloud? Growing Vendors Venture Investors Lower initial investment Lower risk Validate traction Invest in brand & marketing, not sales • Single codebase saves money • Lower up-front expense • Sell online • Minimal sales team • Many pricing models • Easy to adopt Analysts • Cutting edge • Vision statements • Bold stands possible

26. How Avaya is Responding

27. Design Goals: Simplicity, CompletenessA Complete Solution for Midsize Companies Contact Center Collaboration UC, Mobility and Voice Networking Security Services Avaya Comprehensive Midmarket SolutionBuilt on IP Office - Power with Simplicity and Value

28. THANK YOU Bob Williams bobwilliams@avaya.com