Avaya, Extreme to jointly deliver converged IP products

The two hope to marry Avaya's IP telephony products with Extreme's data networking equipment

By Linda Rosencrance

November 4, 2003 12:00 PM ET

Computerworld - Avaya Inc. and Extreme Networks Inc. today announced that they have entered into a multiyear, multimillion-dollar agreement to jointly develop, market and sell communications products that marry Avaya's IP telephony products with Extreme's data networking equipment.
As part of the deal, Basking Ridge, N.J.-based Avaya will resell the data networking products of Santa Clara, Calif.-based Extreme, the companies said in a conference call.
"This strategic alliance will give customers true choice while lowering costs, improving performance and improving security," said Mike Thurk, group vice president for Avaya's enterprise communications group. "It will help businesses merge voice and data networks when and how they choose to do so, while at the same time protecting investments they already own."
Avaya will also receive a warrant to purchase up to 2.6 million shares of Extreme's common stock for a penny per share.
Under the deal, Avaya will serve as the single point of contact for customers of both companies, providing sales, services and support.
"This represents a real win for customers," said Gordon Stitt, Extreme's CEO. "Together we plan to drive new industry standards and new levels of interoperability to help businesses increase production of their networks, reduce deployment costs, improve security and increase the longevity of their infrastructure."
Avaya will continue to offer to existing customers its own line of data networking products, services and support. Extreme will also continue to sell its switching systems through its multinational distribution channels.
Avaya and Extreme will both benefit from the alliance by coming together to offer customers an alternative to single-sourcing Cisco Systems Inc., said Sheila McGee-Smith, president and principal analyst at McGee-Smith Analytics in Pittstown, N.J.

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