January 28, 2006



Avaya Introduces Multi-Tenant Blade Server Solution For Cost-Effective Delivery of Hosted Communications Applications

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Avaya (NYSE:AV), a global leader in business communications applications, systems and services, today announced a new efficient and cost-effective platform for Avaya Hosted Solutions based on an industry-standard, off-the-shelf IBM Blade Server. Working with IBM, Avaya designed a software solution that securely partitions IBM eServer BladeCenter systems to provide multiple instances of business communications applications to multiple customers on a single blade. Using the Avaya SBS3000 Shared Blade Server solution, Service Providers can cost-effectively expand service offerings for business customers to include Avaya enterprise communications applications on a per-seat, per-month basis.

Up to 10 discrete instances of Avaya Communication Manager, the company¹s flagship business communications software, can be hosted on a single blade server system, enabling Service Providers to deliver secure applications to up to 130 corporate customers on a single Blade Center chassis, and scaling to up to 780 customers in a rack of 84 blade servers.

³Enterprise-grade, fully-featured business communications applications are usually identified with premises-based solutions,² said Denzil Samuel, vice president and general manager of Avaya Global Managed Services. ³The flexibility of the blade server architecture will open up a whole new way for businesses to access advanced communications features and functions and experience the benefits of intelligent communications. Service Providers will be able to deliver Avaya Communication Manager with scalability that can affordably reach customers with as few as 25 users.²

The blade server solution architecture will enable companies of all sizes to take advantage of Avaya business communications applications for Internet Protocol (IP) telephony, contact center and messaging, with lower upfront capital investments. The dense processor and storage configuration and
cost- and space-saving advantages of the partitioned IBM blade allow Service Providers to efficiently offer enterprise-class communications to business customers of all sizes, enhancing the value service providers can offer in a flexible delivery model that enables companies to migrate to IP telephony and expand communications capabilities as their business priorities evolve.

³Market demand for Hosted IP Telephony and Applications Services currently exceeds available supply-side offers for many customer segments, which could be addressed by this solution approach,² said Eric Schmiedeke, partner of IntelliCom Analytics. ³Strategically, this solution is a tangible demonstration of Avaya¹s migration to an increasingly software-centric business model, enabling the creation of annuity revenue streams for its channel partners.²

One of the first Service Providers to embrace the Avaya Blade Server strategy is Sprint, who today announced plans to offer Avaya Hosted Messaging and Avaya Hosted IP Telephony, along with plans for a wireless integration offer that will expand mobility capabilities for Sprint cellular and enterprise customers by integrating Avaya communications applications.

³Many businesses are looking for a single source for integrated communications services,² said Tony Krueck, VP ­ Product Development and Management, Sprint. ³Avaya Hosted Solutions based on the Blade Server architecture lets Sprint provide industry-leading business communications applications in a way that makes sense for us and our customers.²

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including over 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol (IP) telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya website:


Sprint and Avaya Link for VoIP and Wireless Solutions for Businesses; Avaya Hosted Solutions for Enterprise Communications Optimized for Sprint Networks

OVERLAND PARK, Kan., & BASKING RIDGE, N.J.---Sept. 20, 2005--Sprint (NYSE:S) and Avaya Inc. (NYSE:AV) have announced a joint agreement for development and delivery of hosted Voice over Internet Protocol (VoIP) telephony wireline and wireless services for the North American marketplace. The agreement allows the companies to jointly develop, market and support new and differentiated VoIP services to business customers as a full-suite portfolio ranging from customer-premise solutions to network-based solutions.

IP enablement is a key strategic initiative for Sprint, which uses its extensive wireline and wireless network assets to serve the converged voice and data communications needs of enterprise customers. The relationship with Avaya helps Sprint build on its existing managed IP Telephony and VoIP VPN capabilities and advances the next phase of Sprint's VoIP strategy - network convergence - which began with the conversion of the Sprint voice core to an IP infrastructure and continues with the integration of the Sprint Global IP network and the Nationwide Sprint PCS Network.

"Sprint and Avaya have a shared communications convergence vision,"
explained Randy Ritter, vice president of marketing for Sprint. "We chose Avaya based on its leadership in IP Telephony and business communications applications in addition to the value of its hosted solutions capabilities.
The synergies in core competencies related to network-based IP services and applications represent a potent combination with significant customer benefits, both for network migration and IP enablement."

Under the agreement, Avaya will work with Sprint to offer Avaya's feature-rich portfolio of IP communications applications including IP Telephony, Wireless Integration and Messaging in a hosted model. Sprint will supply customers with hosted IP telephony and wireless services and applications on a per-seat, per-month basis, enabling companies to implement advanced communications technology flexibly according to business growth requirements, with lower infrastructure investments and maintenance responsibilities.

"The Sprint-Avaya partnership leverages the expertise of two market leaders to provide the end user with a single point of contact for enabling their IP telephony migration strategy," remarked Denzil Samuels, vice president and general manager of Avaya Global Managed Services Division. "Avaya is committed to providing enterprises with flexible ways to take advantage of the benefits and efficiencies of IP telephony. Coupling the strength of the Sprint global IP network and Avaya Hosted Solutions provides customers with access to advanced communications applications and services in a 'pay as you go' model."

The first offer the companies will deliver is Sprint Hosted Messaging(SM), which is anticipated to be available in the fourth quarter of 2005, followed in 2006 with Hosted IP Telephony and Wireless Integration. Sprint Hosted Messaging uses a secure, fully managed platform to provide advanced voice messaging functions on a per-seat, per-month basis, enabling companies of all sizes to take advantage of full-featured messaging that is normally associated with large enterprise systems. For companies that are migrating to IP telephony or upgrading existing messaging systems, Sprint Hosted Messaging offers a path to next-generation networking with lower upfront capital investment and reduced risk of technological obsolescence.

"The Sprint-Avaya partnership offers a unique value to the business customer," said William Stofega, Research Manager, VoIP Services with IDC.
"Customers will be able to receive communications services, a best-in-class network platform and business applications from a single source, without complex administration."

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