RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced an extended and expanded strategic partnership agreement with Avaya Inc., a global provider of solutions to enhance and simplify communications and collaboration. As part of Avaya’s transformation and expedited recapitalization, Avaya Cloud Office by RingCentral (“ACO”) remains Avaya’s exclusive multi-tenanted Unified Communications as a Service (UCaaS) solution to Avaya’s customers, including its on-premises installed base totaling tens of millions of users worldwide.
Under the terms of the expanded agreement, RingCentral and Avaya have agreed to extend their multi-year partnership with minimum seat commitments and a better aligned incentive structure intended to drive accelerated migration to ACO. These improvements will unlock further opportunities for RingCentral and Avaya to maximize value for their customers. The partnership has also expanded to include additional go-to-market models that enable Avaya to sell Avaya Cloud Office to its installed base on a direct basis.
“Under our past agreement with Avaya hundreds of thousands of seats have transitioned to ACO. With this new agreement, we expect for this motion to continue and accelerate as new product integrations and sales plays will be enabled,” said Vlad Shmunis, founder, chairman and CEO of RingCentral. “As part of its recapitalization, Avaya is emerging stronger and better positioned to migrate the world’s largest on-premises installed base to Avaya Cloud Office by RingCentral, the best UCaaS destination for every Avaya Unified Communications customer.”
“Our goal is to serve our customers first and foremost,” said Alan Masarek, CEO of Avaya. “Through our extended and expanded partnership with RingCentral, we look forward to empowering our customers in their cloud migration journeys — creating an all win situation for our customers, RingCentral, Avaya, and our channel partners.”
To further differentiate ACO, both RingCentral and Avaya will make further product and development investments into ACO, including ACO’s integration with other Avaya products.
“RingCentral and Avaya have a strong playbook for migrating customers to the cloud through ACO,” said Elka Popova, vice president of digital transformation at Frost & Sullivan. “Leveraging RingCentral’s integration with Avaya telephony endpoints, and RingCentral’s reputation as a trusted provider of leading cloud communications solutions — together with Avaya’s existing go-to-market strategy and channel community – this partnership offers a compelling path for customers to move to the cloud.”
Guggenheim Securities, LLC served as financial advisor to RingCentral. Wilson Sonsini Goodrich & Rosati is acting as legal advisor to RingCentral.
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