This January, telecommunications company Avaya filed for Chapter 11 bankruptcy after facing challenges that arose from adapting to cloud technology just a bit too late. Though the company does provide software and services and made about 75 percent of their revenue in 2016 from these solutions, their capital structure was based on an older, hardware-focused business model that no longer reflected industry trends. Avaya’s decision has left many in the industry wondering if the cloud has won or if there is still a place for on-premise telecom solutions in the modern marketplace. Below, we’ll discuss what Avaya’s challenges say about cloud-hosted solutions as well as where on-premise solutions fit in today. What Avaya’s Situation Says About the Cloud The events which lead to Avaya’s recent bankruptcy decision have brought to light an important challenge for many telecom businesses today. As the industry shifts toward more software and service-based business models, those companies with capital structures […]
Before we start looking at the aspects of cloud telephony, let us first get a quick understanding of what cloud telephony is.