Avaya Russia and CIS

Russia Avaya In was represented by the local legal entity "Avaya CIS," formed in 2005. Its founder was the Luxembourg office of Avaya. In the "" block, Finance this article shows the revenue of this legal entity, and not the entire Avaya business in Russia.

History and Performance Indicators

2022

Liquidation of the Russian office and dismissal of the staff

On September 8, 2022, it became known that Avaya would liquidate the Russian office and dissolve the entire staff. This company remained one of the few foreign IT vendors that continued to work in the Russian Federation.

Avaya's departure from the Russian Federation was announced by the Telegram channel "Import substitution in IT. Equipment and Software. " At first, subscribers told him about this, and later - the company's employees in the Moscow office. Employees were informed about the closure of the office on September 7, 2022. The process of leaving the company from Russia will take some time. It is noted that the liquidation of the Russian representative office may be part of the company's global policy to reduce personnel due to financial problems.

Avaya liquidates the Russian office

In Russia, the company is represented by the local legal entity Avaya CIS, established by the Luxembourg office of Avaya. Cloud, OnPrem solutions (by subscription) and local devices for telephony and communication systems Avaya are used by many Russian companies, including banks and state-owned companies. The company has a large number of customers in the country, especially for the provision of services using IP-PBX services. Since March 2022, Avaya has been one of the world's technology companies that has not stopped working in the Russian Federation, but due to sanctions, its ability to supply new equipment has been limited.

The reasons why the management of Avaya decided to liquidate the Russian office of the company were not announced by September 9, 2022. There is also no data on how long the process of liquidation of Avaya CIS will last, and whether its employees will receive compensation or an offer to move to another country to continue working for Avaya.

In May 2022, Avaya announced that due to the military conflict in Ukraine, the company was forced to lower its revenue forecast for the fiscal year, as countries (not only Eastern European) began to allocate more money for defense.^[1]

Avaya, which did not leave Russia, estimated losses in revenue from the conflict in Ukraine

American the developer of digital communications solutions Avaya estimated the effect on its conflict revenue at To Ukraine $60 million in 2022 (4.13 billion at rubles the current exchange rate), Moscow exchanges of which $45 million came directly from revenue in. This was Russia stated by Executive Vice President, Financial Director of Avaya Kieran McGrath (Kieran McGrath) in May during a conference call on the company's Q2 2022 performance of Avaya^[2]

Avaya CEO Jim Chirico noted during the call that the company has a significant customer base in Russia, and that the conflict in Ukraine and the sanctions imposed as a result of it put pressure on revenue.

The revenue that the company will receive less in Russia in 2022 is related to customers: Avaya cannot work with customers who have fallen under sanctions, cannot receive payment from them.

Avaya cannot work with sub-sanctioned Russian clients "(photo - media.bizj.us)"

In addition, the company expects that a total of about $15 million in revenue will be missed in other countries of Eastern Europe and in some countries of Western Europe: there is a change in investment priorities and a slowdown in the sales cycle, Kieran McGrath explained.

It is noteworthy that Avaya turned out to be one of the few American technology companies that have not yet announced their departure from Russia since the beginning of Russia's military operation in Ukraine. In this regard, she even got on the "list of shame" of the Yale School of Management, where as of May 11 it is indicated that Avaya still supports Russian partners^[3].

In Russia, the company is represented by the local legal entity Avaya CIS, established by the Luxembourg office of Avaya. The revenue of this legal entity in 2021 amounted to 1.3 billion rubles, reduced by 4%. At the same time, it ended the year with a net profit of 245.4 million rubles, according to the database of legal entities Kontur.Focus. " In 2021, the staff of the Russian office of Avaya was about 70 people.

2020: Pope Rostislav appointed to the post of regional manager for the Northwestern Federal District and the Southern Federal District

On January 23, 2020, Avaya, a global provider of business communications solutions, announced the appointment of Rostislav Papa as Regional Manager for the Northwest and Southern Federal District. Read more here.

2019: Revenue growth by 10% to RUB 1.3 billion

At the end of 2019, Avaya (Avaya CIS LLC) took 50th place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 1,307,678 thousand rubles, which is 10% higher than in 2018.

2018: Revenue - RUB 1.18 billion

Revenue Avaya (Avaya LLC) CIS for 2018 amounted to 1,187,743 thousand rubles.

2019: 31.8% decrease in revenue to RUB 1.56 billion

At the end of 2019, Sharp Electronics (Sharp Electronics Rush LLC) took 48th place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for 2019 amounted to 1,568,157 thousand rubles, which is 31.8% lower than in 2018.

2018: Revenue - RUB 2.29 billion

The revenue Sharp of Electronics (Sharp Electronics Rush LLC) for 2018 amounted to 2,299,408 thousand rubles.

2016: Dollar sales growth over 30%

The fiscal year Avaya ended at the end of September 2016. It was quite tense, like the entire IT market in Russia. It is fundamental that during 2016 a positive growth trend was clearly indicated.

"The total sales growth (in dollars) was more than 30%," said Alexander Parkhomenko in April 2017 at the Experience Avaya forum. - At the same time, the share of solutions for contact centers has come close to 30%. And the share of services and software in our business both in Russia and around the world exceeded 70%. This is an example of the fact that global Avaya is following the path of transformation into a Software and Services company that was announced some time ago. We are no longer the "iron" Avaya that we used to be. "

The direction of solutions for contact centers, which are a significant factor in increasing customer loyalty, was especially actively developing, which is especially important in the crisis period, when companies seek to maintain their customer base. By the way, the high demand for systems for contact centers remained in the previous crisis.

The second area, which was actively developing in 2016, was video conferencing systems, which is also quite understandable in terms of the requirements that customers today impose on investment projects. Avaya's share in the Russian videoconferencing market is growing every year^[4]

2011

Sales growth by 40%, contracts of the Olympics and Universiade

In 2011, the company showed an increase of 40%. For a number of years, Avaya has specialized in the development of contact center equipment. In 2011, the company's field of activity includes unified communications for industrial and power enterprises, data transfer systems, solutions for data centers.

An important event in 2011 was the signing of an agreement according to which Avaya became the official supplier of the Sochi 2014 Organizing Committee in the Telecommunications Equipment category.

Also in 2011, Avaya won a tender in Tatarstan to provide telecommunication equipment for the upcoming Universiade.

A new area of ​ ​ activity of the company was cooperation with enterprises in the field of hotel business, as well as the development of solutions for educational and medical institutions.

Sergey Kolobov appointed head of office in Ukraine

On December 15, 2011, Avaya announced the appointment of Sergei Kolobov as head of Avaya's representative office in Ukraine. In this position, Mr. Kolobov provides general management of the representative office, being subordinate to Alexander Parkhomenko, General Director of Avaya in Russia and the CIS.

Vladimir Valchuk, who served as head of Avaya's representative office in Ukraine, was transferred to the post of director of business development in the CIS.

Sergey Kolobov's sphere of activity included the issues of coordinating the company's business in Ukraine and the tasks of maintaining Avaya's leading position, strengthening and developing relations with key partners, expanding channels and increasing sales volumes in the main areas of the company's activities.

Notes