February Blitz Nortel Displacement

1. February Blitz Nortel Displacement February 8, 2008

2. Agenda • Welcome and Opening Remarks Kevin Cook • Blitz Tracking Marcia Vandenburgh • Selling Against Nortel Tracy Fleming • Nortel IVR Displacement Lou Ann Jones • Promotions to Win the Sale Larry Ekiert • Program Overview Sue Salek • Q&A

3. Blitz Tracking Marcia Vandenburgh

4. Blitz Results – Your Action Items • Use updated tracking sheet (get from ops leader) • Send Blitz Activity Tracking Sheet progress to Sales Managers & Ops Team • Initial View – send by end of day Feb. 12th • Final View – send end of week (Feb. 15th) or when done if sooner

5. Blitz Results • Readout provided to leadership summarizing results morning of Feb. 13th • Final manual results available Feb. 18th • Siebel pulls to track funnel build progress

6. Action Required • Blitz on February 12 • Time: 8:00 am – 12:00 pm (your time zone) • Complete Activity Tracking Sheet • Return to Sales Ops on February 12 • Enter Opportunities into Siebel • Nortel Prospecting: use Siebel Source code US-MKTG-FEB_08_Blitz • Migration Workbook: use the relevant Siebel Source code for your region

7. Selling Against Nortel Tracy Fleming

8. Why Target Nortel? • Large installed base ready to migrate • 22K Meridian PBXs approaching end of life, causing major disruption in customer base • Base is conservative in adopting IPT technology • 70% of voice customers say they are “ready,” but only 6% have fully deployed IPT • 50% say they are still evaluating or have partially deployed VoIP • Of those that have partially deployed IPT, less than 25% of voice traffic has been migrated (2006) • Migration - The business impact is significant enough for Nortel customers that changing vendors is a viable option. • No clear sense of direction for unified communication articulated in the market with both Microsoft and IBM alliances. • Other issues which may impact Nortel customers • Recently replaced Enterprise leadership with operational focused executive with no telecom experience. • Lack of Channel Support • Distribution partners abandoning Nortel for its competitors • Ability to provide technical support is limited • Nextira One (Nortel’s largest distributor in US) has been acquired by Black Box • Business model primarily focused on carrier/service providers • ~75% of revenues are from carriers/service providers, while 21% are from enterprise customers 8 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA

9. 9 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA T1

10. Avaya Proprietary

11. Avaya/Nortel Comparison

12. 12 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA

13. Note: CS Release 5.0 is now the current release 13 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA

14. Nortel PBX Pain Points • Mobility: Nortel’s add-on mobility not fully integrated - offers only basic connectivity and communications • Systems can’t be centrally managed • Can’t extend enterprise features / functionality • Requires multiple telephone numbers, mailboxes and service agreements with corresponding high costs. • TCO: Nortel’s system architecture and complex network topology require local administration and management • No centralized management and administration • Nortel’s use of proprietary systems and technologies limits IP system migration and increases the total cost of ownership

15. Avaya Advantage: Migrating to IPT • Mobility: one-X Mobile solution delivers a fully integrated user experience with IT control and security. • Users can securely access all their deskphone features from any phone on the network • Full use of enterprise capabilities, such as low cost dialing plans, single call logs and voicemail systems – from hundreds of mobile devices, reducing cell phone expenses, securing communications and making employees more efficient. • TCO: Flatten, Consolidate and Extend (FCE) reduces administration costs, operational overhead • Centralizes surveillance and control, provides system redundancy, flexibility of deployment of features and functionality • Highly reliable advanced technology with complete SIP enablement services fully integrated into the Avaya platform reducing the need for multiple servers. • Avaya Integrated Management provides a single, intuitive interface to manage all communications.

16. Customer Benefits: • High-impact cost savings and productivity enhancing capabilities/ applications immediately available without an expensive upgrade of the legacy infrastructure • Users are able to migrate to IPT over time as business needs require • Transparent front-end solution, enables implementation of new capabilities without the disruption to equipment, users and operations • As Nortel’s channel support is eroding, a front-end solution with Avaya allows Nortel customers with pre-and post-sales support, as well as optional maintenance and consulting services. LAN Avaya 9630 IP Phone IP Softphone PDA phone Ext. to Cellular 500 Avaya “Front-Ending” Solution Avaya Integrates with Nortel Meridian1, BCM Existing Infrastructure PBX • Existing phones can be re-used • Productivity-enhancing features, such as Meet-Me Conferencing and One Number Portability, can extend from HQ to branch offices • Many Contact Center capabilities come standard • Multiple stand-alone PBX structures can be consolidated, lowering management costs • Instant Messaging and Presence features can be rolled out to your entire organization • Dual Connect Feature available T1 Communication Manager Avaya’s migration strategy provides investment protection as well as new IP-enabled applications by connecting a small, low-cost, Avaya Communication Manager gateway “in front of” a customer’s legacy Nortel system.

17. New New S8300 Media Server G450 Media Gateway S8300 Media Server G450 Media Gateway LAN LAN Qsig/PRI S8700 Server G600 Gateway 4630 IP Screenphone 4630 IP Screenphone LAN IP Telephone IP Telephone Branch Office Solution Main Location Modular Messaging Meridian opt 81 PSTN “Branch Office Concentrator” WAN Cellular Network Extension to Cellular 17 17 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA

18. Nortel Call Center Single Site Pain Points • Symposium Call Center Server (SCCS) Software is End of Life/End of Support on Option PBX’s • New features such as auto-attendant, music on hold, agents cannot be added because software is EOL • Reliability: • SCCS is a Windows based operating systems • SCCS Server is a single point of failure • SCCS Server are not redundant • Report Customization: SCCS customized reports are very difficult to create • Limited scalability

19. Nortel Call Center Multi-Site Pain Points • For a virtual multi-site contact center - Nortel requires a Symposium Call Center Server (SCCS) at EVERY site • No agent license portability • SIP is not supported on Nortel Option switches • Symposium Call Center Server (SCCS) Software is End of Life/End of Support on Option PBX’s • New features such as auto-attendant, music on hold and additional agents cannot be added because software is EOL • Reliability: • SCCS is a Windows based operating systems • SCCS Server is a single point of failure • SCCS Server are not redundant • Report Customization - SCCS customized reports are very difficult to create

20. Avaya Advantage: Contact Center Front End Migration strategy for non-Avaya systems (PBXs and/or Key/Hybrid) that delivers investment protection as well as new IP-enabled applications. • Connects a low-cost Communication Manager gateway along with the corresponding call center solutions “in front of” a Nortel legacy telephony system • No need to de-install existing equipment. Extends the useful life of original investment, maintains ongoing business operations and end-user processes. Staff disruptions are minimized, if not eliminated altogether • Seamlessly integrates new applications on the old system • TCO - This get’s Avaya in the door - customer can now migrate off of OLD Nortel equipment at their own path, pace and choice

21. Nortel IVR Displacement Lou Ann Jones

22. Nortel Background • Nortel purchased Periphonics in 1998 • Periphonics was the number 1 provider of stand alone IVR systems • Periphonics offered a switch agnostic IVR solution • Avaya, Nortel, NEC, Cisco • The IVR system that came with the Periphonics purchase was a VPSis

23. Nortel IVR offerings • VPSis - Legacy IVR system • End of Life & End of Support: end of 2007 • No new parts are available • A customer cannot add additional ports to their existing VPSis • VPSis does NOT support VXML • MPS500 - Nortel’s new IVR solutions • Offered for approximately 4 years • Replaces the VPSis

24. Key Nortel attach point to VPSis • VPSis migration options • VPSis migration to a Nortel MPS500 is a complete system replacement • Applications developed on the VPSis can be ported over to an MPS500 ONLY if the customer does NOT want VXML • If the customer wants their applications developed in VXML it is a complete application re-write ($$$$$$$$$$$$$$$$ very expensive) If the customer has to go to the expense of a complete change out show them the benefits of going with Avaya

25. Avaya Helps You Deliver a Consistent Experience Your Callers Will Love to Use Seamless experience across all touch points IVR complementary to Web and live agents Live Agents Voice Self Service Web Self Service Applications Data

26. Benefits of a Common Architecture Applications leverage common web investments and architecture Web Application Servers Voice Self Service Web Self Service Data Avaya IR / Voice Portal html VoiceXML, CCXML

27. Dialog Designer Application Design

28. Better Ways to Improve Service at the Lowest Cost Provide “always available” services and access Differentiated customer experience and brand loyalty Customer service innovation Total cost of ownership More Responsive to Always Changing Business Needs Flexibility and agility to adapt Partner with business teams Understanding of best practices Ready for the future needs today Today’s Challenges Business & Operations IT Management

29. Delayed 40.00 Real Time Real Time 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Average Cost 7.00 Variability In Dollars 5.50 5.00 0.24 0.45 Web IVR E-Mail Text Chat Phone Self-Service Assisted Service Economics Driving Channel Shift to Self Service Source: Yankee Group

30. What To Automate: Why Do People Call?

31. Self Service ROI: ROI: (cost of implementation) (# of calls/month) x (Cost per agent assisted call – cost per automated call) x (% automation) Example: 1,000,000 calls pays for a $200K system in 6 months (assuming $5/call agent assisted, $0.5/call self service, 80% success)

32. Nortel Displacement Program Larry Ekiert

33. New Promotions to Apply

34. Key Program Messages • Cost Effective Replacement of Obsolete and expensive to upgrade Nortel - mine the SP/BP base with aggressive promotions to trigger the move • Program targets the lower end of the market where we typically have been absent : 100-500 user systems • Norstar / BCM : IP Office • Option 11/Mini : MVE • Option 21 : CM5.0 • Investment recovery – recover a portion of the original Nortel investment to leverage discounts on market-leading Avaya solutions • Seamless Mobility – leverage Avaya enterprise communications outside of the office • Services Savings – savings on software maintenance and services • There’s NEVER been a better time to replace your Nortel Phone System! • Program Elements: • Hardware discounts (Win It) • Free one-X Mobile (50 users) • Nortel equipment trade In and disposal (Trade In/Trade Up with Authentic Avaya) • Additional SSU Discount (Services Win It) • AFS Financing (New Wave)

35. Nortel Displacement – Hardware Discounts (Win It) Win It provides hardware discounting that helps better position the Avaya solution in the 200-500 user market segment- depending on the advanced hardware required. Win It provides the savings on the advanced applications platforms and the advanced devices required to maximize their usefulness.

36. Nortel Displacement – Win It! one-X Mobile Starter Kit Provides connectivity for 50 users, across wireless and in-building wireless networks (using dual mode handsets) to seamlessly extend corporate communications capabilities regardless of proximity to the office. Government • Check on status of interdepartmental process flows • Alerts for security across network • Office swapping between buildings, across campuses Healthcare • Integrated with top-selling nursecall system • Integration with telemetry, patient monitoring, HVACand alarm systems • Seamless and instantaneous Doctor notification while on-rounds or off-site Retail • Call boxes that customers can activate to call a handset, letting employees help customers in real-time • Inventory can be checked via the handset, interfacing with inventory control systems • Pricing questions can be checked

37. Nortel Displacement – Rebate Configurations (Trade In / AA) Avaya Trade-In discountable phones and systems 9600s (CM) 1600s (CM and DO) 5400s (IPO) 5600s (IPO) 2400s (CM) Communication Manager Distributed Office IP Office (IP500) Quick Edition Avaya offers a trade-in credit (direct) or rebate (in-direct) towards the purchase of new phones and system components for these Nortel systems: Nortel: M2: $10 M2 (hands free): $25 M3: $20 M5: $10 M7: $15 M8 & M9: $10 1100: $40 i: $40 T: $20 Norstar 8 X 24 <25 users: $50 Norstar 8 X 24 >25 users: $50 Norstar 4 X 16 <25 users: $30 Norstar 4 x 16 >25 users: $50 Call Pilot 100: $150 Call Pilot 150: $350 BCM50: $125 BCM200: $125 BCM400: $350 BCM1000: TBD Trade-Up discountable phones and systems 9600s (CM) 1600s (CM and DO) 5600s (IPO) 2400s (CM) Communication Manager Distributed Office IP Office (IP500) Quick Edition Examples of the systems displaced and the associated rebate/credit value * Accelerates introduction of AA into Canada

38. Nortel Displacement – Hardware Services Agreement Discount (Services Win It) The incremental services discount enables the Service Provider and/or Business Partner the option of either: • Passing along the extra cost savings as an added incentive to replace Nortel Switch • Retaining the savings as partial compensation for abandonment of said revenue stream. • Discount applies to only the hardware components and escalates depending on the term chosen by the customer. • In order for the discount to be processed properly, a separate order must be processed per the SBA process. • If one-X Mobile component of the promotion is activated, then the customer must be charged SS or SSU on those licences.

39. Avaya Financial Services – New Wave • 0% - 2.99% Financing • 0% True Lease (60 month) • 2.99% Finance Lease (36 mo) • No deferred billing • No maintenance required • Can combine with other promotions • Eligible products: • Communication Manager • MultiVantage Express • Distributed Office • IP Office w/VM application

40. Nortel Unified Communications 1-2-3 Promotion(January 2, 2008 – December 12, 2008) New System Packages Upgrade Packages Discounts: • 15% off CS 1000E & base components • 15% off IP Phones • 15% off Business Productivity Package (Find-Me Follow-Me and Meet Me Conferencing) • 15% off New CallPilot 5.0, and 100% off first 20 CallPilot Desktop and Fax seats • 15% off New Contact Center 6.0, and buy 10 or more Contact Center Recording Licenses and Get 10 Free • 15% off Nortel Multimedia Conferencing Discounts on new CS1000 and a free Converged Office Starter Kit: 25 users Unified Communications integration with Microsoft's LCS 12% Discount: • CS 1000E, CS 1000M upgrading to release 5.0 • Core hardware/software and telsets • New, upgrade, migration or expansion to CallPilot 5.0, and 100% off first 20 CallPilot Desktop and Fax seats • Contact Center 6.0 new, upgrade, migration, and incremental licenses and buy 10 or more Contact Center Recording Licenses and Get 10 Free • Nortel Multimedia Conferencing Upgrade to CS1000E or CS1000M – get a free Converged Office Starter Kit: 25 users Unified Communications integration with Microsoft's LCS

41. Named and Territory Blitz Day Program Overview Sue Salek

42. Blitz Targets • Nortel customers from Harte Hanks: • PBX Displacement: companies with Nortel PBX and 101-500 users • Front-ending Call Center: companies greater than 500 users with Nortel PBX or IP-PBX call center • IVR Displacement: companies greater than 500 users with Nortel PBX or IP-PBX without IVR • Nortel Prospecting lists uploaded into Blitz Tracking Sheets • Base migration: leverage Migration Workbooks to supplement blitz efforts

43. Nortel Displacement Toolkit • Training presentation and blitz codes • Tools aligned with 3 Nortel segments • Sales Battle Cards – preparation for phone call • Competitive Displacement Guides – understand Avaya differentiators • Premium content and case studies: create awareness of Avaya advantage • Brochures and demos – send or leave behind • Invitations – leverage local events • Presentations – materials for briefing • Promotions – to close the deal http://avaya.netlabs.net/email_templates/toolkits/nortel_sales_blitz/

44. Deal Registration Business Partner Deal Registration: • You can engage the appropriate Business Partners as relevant to the accounts/prospects in your prospecting list. • Deal registration is applicable for BP’s displacing competitive NET NEW systems • BusinessPartners can register their Net New leads in eDemand and get credit by placing “Blitz” prior to their OTN company name. • Example “Blitz: ABC Incorporated” Measure and Track in Siebel! • Use Siebel Source Code US-MKTG-FEB_08_Blitz

45. Q&A 45 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA