Avaya's rising direct sales spark concern

Telephony vendor claims channel still important despite 'rocketing' direct sales

Uncertainty is surrounding Avaya’s channel after the telephony vendor’s direct sales rocketed by 15 per cent during the final quarter of 2005.

Direct sales now account for the majority of the firm’s business, but it has maintained that channel relationships are still important.

“The figures are for a global context. The trend is to move more indirect in Europe, where the channel is still integral to our plans,” said Daniel Bausor, head of corporate affairs at Avaya.

Bausor claimed the transition is due to strong results in the US where a mainly direct model is used.

Nathan Mark, sales and marketing director at rival Cisco VAR Prime Business Solutions, was unsurprised by the direct swing.

“Avaya’s commitment to the channel is debatable. As soon as the project gets to a certain size it takes the account direct,” he claimed.

However, Martyn Lambert, vice-president for Avaya EMEA marketing, said: “Our strategy remains unchanged and we are investing heavily in channel build-up. The plan is to scale out by using the channel.”

Keith Humphreys, principal analyst at EuroLAN, said: “As long as Avaya makes it clear which accounts go direct and which through the channel, then there will be no problem.”

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