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Avaya, IBM form global strategic alliance to offer CRM solutions

Johannesburg, 21 Feb 2002

Avaya Inc and IBM today announced a global strategic alliance to integrate Avaya`s Customer Relationship Management (CRM) Solutions with IBM`s middleware, eServer* technology and e-business solutions.

This agreement represents a joint commitment to pursue the worldwide CRM applications and infrastructure market that is growing from $6.2 billion in 2000 to over $14 billion by 2005, according to IDC.

IBM and Avaya will ready new CRM solutions to become part of IBM`s e-business solutions portfolio, with the firms collaborating in product development, marketing, sales and services. The resulting CRM contact centre solutions will enable businesses to more effectively manage customer interactions, deliver on commitments, and measure and act on the results of those interactions.

Avaya is optimising its products to perform on Java J2EETM standards for Web-based enterprise application development. This includes the IBM WebSphere Application Server* and IBM DB2* database software running on AIX* and NT, the operating systems for the IBM eServer* pSeries* and xSeries* products. Avaya will promote IBM e-business infrastructure products as technologies of choice for its customers.

"Avaya`s agreement with IBM is part of a growing relationship that is good for our mutual customers," said Don Peterson, chairman and CEO of Avaya. "It extends the reach and the scope of our CRM solutions, and through the combined core competencies of our two firms, customers can expect solutions they can trust, that reach the market faster and that help them do more with their existing e-business infrastructure."

Rob Saultz, VP CRM Business Development and Strategy of Global Solutions, IBM, said: "Our goals include providing the highest level of functionality and return on technology investment to CRM customers. Incorporating Avaya`s CRM solutions into IBM`s e-business portfolio of products and services will offer customers greater flexibility in selecting the end-to-end CRM solution best suited to their requirements."

The Avaya-IBM alliance builds on an agreement between the firms announced in September 2001. Under the agreement, IBM Global Services has developed consulting and implementation services to complement various Avaya products and services, including unified communications, CRM solutions and Web-based e-commerce applications. A joint development program to create a Lotus Notes-compatible version of Avaya Unified Messenger-a market-leading application for message management-- is well underway, and general availability of the Avaya-IBM joint messaging product is expected Q2 2002.

Avaya and IBM have had a number of customer successes, including contact centre outsourcer SITEL, which is currently engaged with a major automobile manufacturer to consolidate numerous 800 numbers and call centres and to implement a systems infrastructure capable of performing all customer contacts with new levels of speed and dependability.

Doug Pontious, Business Unit President, SITEL, a contact centre service provider, adds: "By partnering with Avaya and IBM, SITEL is able to provide its client base with a fully integrated CRM platform that transforms standard customer service transactions to valued customer care interactions. The resulting enhanced customer relationships continue to drive increases in lifetime customer enthusiasm -- a top priority for most service-oriented companies."

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Avaya CRM Solutions

The Avaya CRM solutions that will become part of IBM`s e-business portfolio enable businesses to communicate effectively and to share information throughout their enterprise. They include:

* Interaction management solutions that allow companies to communicate with customers over a variety of communication mediums, including the Internet, e-mail, phone, Web chat, Web call back, voice mail and fax.

* Commitment management solutions that help companies deliver on their promises to customers by automating predictable actions and repeatable business processes, while delivering communications throughout an organization to meet desired customer service levels and business objectives.

* Business intelligence solutions that offer access and insight into mission-critical business data, helping companies make strategic decisions about service, communications and marketing initiatives.

According to market research by Gartner, Avaya is identified as one of the world leaders in contact centres. The firm has more than more than 20 000 contact centre customers throughout the world, backed by more than 700 professional services consultants.

IBM PartnerWorld for Developers

Software application developers receive support from IBM`s PartnerWorld for Developers (www.developer.ibm.com) - a worldwide program designed to help software developers reach broad markets, lower their costs of doing business, and take their products to market faster. For more information on IBM, visit http://www.ibm.com.

Avaya

Avaya Inc, headquartered in Basking Ridge, New Jersey, is a leading global provider of voice and data networks as well as communications solutions and services that help businesses, government agencies and other institutions - including more than 90% of the FORTUNE 500 - excel in the customer economy. Avaya offers Customer Relationship Management Solutions, Unified Communication Solutions, Service Provider Solutions, MultiService Networking Infrastructure, and Converged Voice and Data Networks - including the company`s no-compromise Avaya Enterprise-Class IP Solutions (ECLIPS) - all supported by Avaya Services and Avaya Labs. Avaya is the worldwide leader in unified messaging, messaging systems, call centres and structured cabling systems. It is the US leader in voice communications systems and services. Avaya is an official sponsor for the 2002 FIFA World Cup, the FIFA Women`s World Cup 2003 and the 2006 FIFA World Cup tournaments. For more information about Avaya, visit its Web site at http://www.avaya.com.

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