Karl Soderlund Vice-President Americas Channel Sales

1. Karl Soderlund Vice-President Americas Channel Sales

2. During Our Time Together Agenda - My Vantage Point: Strength of the Avaya Channel - 365 Days: Foundation for Success - Driving Success in FY13 - Winning Big • IP Office – Brian Murray • Radvision - Patrick Scott • Networking – Dave Fraser - Setting Expectations

3. Why I’m (still) Happy to be Here Technology Customers Partners

4. FY12: A Tale of Two Avayas Where We Were 1H FY12 • Dramatic Programatic Changes • Quality Issues • Mentality: “Us v. Them” • Sentiment: Lethargic • Groundswell of Direct Conflict Where We Are 2H FY12 • Program Consistency & Predictability • Best in Class Mid-Market Technologies • Mentality: “Strategic Alignment” • Sentiment: Bullish • Conflict is exception, not the rule

5. Works in Progress

6. Continuing to Raise the Bar Streamline Processes Invest in Partners Generate Leads

7. Streamlined & Enhanced Support • Simplified Sales/Channel Territories

8. Driving Partner Profitability Better aligning our program benefits to incent behavior and reward results

9. Investing in Our Partners Actions Speak Louder Than Words IPO Demand Generation Radvision Demo Kits Bounce Back Qualified Leads • Created IPO 8.1 / Networking Demo Kit Soft Bundles • Funded 120 Demo Kits for Partner field offices • Funded 31 SME & MM Appointment Setting Campaigns • Demo equipment & training for Wave I & Wave II Partners • Q1 Appointment setting campaigns for Wave I partners 23 hand-picked partners Additional support from Avaya teams Strategic planning meetings and path to success plans Leveraging Avaya’s Inside Sales Team to uncover new opportunities Delivered 159% more BANT qualified leads this year: 13,996 in FY12 99.5% of all Avaya- generated leads are distributed to partners

10. FY13: Tenets for Success Alignment Teamwork Activity

11. Organizational Alignment John Dilullo Americas Sales Tom Mitchell Global GTM and Enablement Avaya Learning Karl Soderlund Channel AMs Channel SEs Channel Networking Channel Video Distribution Business Development Global Accounts Recruitment On-boarding and Enablement MNC Accounts Cust. Segmentation / White space Major Accounts Avaya Connect Communications Customer Focused High Touch Account Control with growth in critical customers Market Focused Broad coverage driving growth in strategic areas ! ! NOTE: This will not diminish the channel role in large accounts

12. Two Defined Sales Motions Fuel Growth Protect & Upgrade the Base New Customers Existing Avaya Footprint New Technologies to Existing Customers • Focus on: • Selling newer technologies to existing customers (e.g. Data, Video) • Hunting for new sites or competitive sites within existing customers (e.g. US Deal Reg) • Hunting for new customers (e.g. US New Customer Incentive) • Selling higher margin technologies to existing and new customers (e.g. US Grow Right) • Selling retail maintenance services in the US (e.g. US maintenance commissions)

13. A Territory Model for Teamwork Future State Current State Avaya Cam TAM Avaya Cam TAM Partner Sales IS / Mkt / Svcs Partner Sales IS / Mkt / Svcs Avaya Partner Customer Customer Partner Avaya Desired Objectives Current State • TAMs focused strongly on End Users • Partners used for pure fulfillment – not leverage • Avaya Channel CAM used for deal administration • Non-existent TAM-to-Partner alignment – other than deal processing. • TAMs NOT involved in Partner recruitment or enablement • TAMs are “quarterback” for territory • TAMs leverage CAMs and Partners for demand generation and customer coverage • TAM accountable for territory growth – with and through legacy and new partners

14. Increased Activity = Increased Results

15. Looking Forward: What You Can Expect • iCAM • Support • 100% Channel in the Mid-Market • Simplified MDF Program • Disti Radvision Labs & Support • Partner Connection Days

16. Where We Are Winning . . . How We Are Winning . . .

17. IP Office • Publishing Company • $165,000 deal @ 50% Margin • Opportunity: • Customer had a CM4 solution including Intuity that was end of lease on a 5 year FMV lease.  Existing solution headquartered in NYC with an LSP in Los Angeles.  Total station count is 350 stations and interested in OneX Mobile. • Financials: • End of lease buyout from AFS was approximately $120,000;Upgrade to CM6 and Aura Messaging was an additional $120,000.  Total investment to keep the CM was $240,000 plus annual Support Advantage. • Proposal: • Partner positioned an IPO with all new endpoints. In addition, maintenance on the IPO was 40% less per year and OneX Mobile included presence making it more feature rich on IPO than CM. • Decision: • This was a finance driven decision • The IPO closed in two weeks. • New York Not-for-Profit • $97,000 deal @ 40% Margin • Opportunity: • Customer looking to replace their legacy Definitysystem. The CIO wanted to compare the 3 alternatives: Avaya, Cisco and Shoretel.  They issued a Mini RFP asking all 3 companies for an overview and demonstration. • Customer Evaluation: • - Cisco was eliminated due to pricing (double) TCO • - Shoretelbrought in their demo kit & impressed the client • Avaya’s presentation was done at the EBC. client was very impressed with IPO Server Edition and how all of the client’s requirements were covered. • Avaya Differentiators: • Conferencing capability built in (big leg up over Shoretel) • Avaya’s Mobility and BYOD Solutions (One-X, Soft phone, Flare) • Pricing: Leveraging Avaya promotions (777), the Avaya proposal 20% less • Decision: • Feature functionality with conferencing and the price solidified the client’s decision to purchase Avaya.

18. Radvision Revenue: ~$218,000+ Install (AV Integration) & Services Competition: Cisco/TAA (Incumbent video) Channel : Avaya Connect Partner • Why We Won: • Understanding Business Drivers.  Consulting to identify the key business processes coupled with solution selling, and a compelling TCO.  Examples include: “Ask and Expert” virtual support, B2B simplicity, Board of Director and Leadership meeting support. • Vendor Agnostic Approach.  Our ability to present an “end to end” solution with multi-vendor interoperability to leverage installed assets with goal to upgrade an additional 17 Branch locations in 2013. • Pricing/Solution Strategy.  Bundled strategy with management (iView) solution to support mixed environment and be supported on VM WARE environment. This coupled with Scopia Mobile and Net Sense forced competitors hand while exposing high cost of sale for similar offering . Our Dynamic (4:1 ) MCU port support for Scopia illustrated scale of offering as Bank grows while managing bandwidth assets where possible.. Achieved increased productivity , ease of business while increasing customer service. Video Collaboration Win: Mid Size Regional Bank

19. Networking 18% margin Sold at list 25% margin

20. Mutual Expectations My Commitment to You • Listen • Engage • Take Action My Ask of You • Don’t accept the status quo • Drive for growth • Hold each other accountable

21. Thank you