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Large Avaya IP telephony users face price hikes

Large companies that use IP telephony systems from Avaya may face price increases, following the introdcution of a new licensing system by the company at the beginning of the year.

The prices stem from Avaya’s migration to a per-user-based pricing model for IP telephony software and other communications applications.

Previously, Avaya’s software licensing saw products priced using various different formulas, including the number of ports or the type of hardware being used.

It is being reported in the US that large firms upgrading to newer Avaya IP telephony systems are being quoted much higher prices than previously.

The price increases were discussed at Avaya’s annual user conference in the US earlier this month, where some companies slammed the new charges.

Avaya has admitted that some larger companies face stiff increases in initial quotes, although it said these were open to negotiation.

Avaya IP telephony rivals, including the likes of Cisco and Alcatel, are said to be planning to take advantage of the discontent among some Avaya customers.

Because of the increases, some users may also delay any plans to upgrade their IP telephony systems.

The new licensing arrangements cover Avaya’s main Communication Manager 3.1 IP telephony software, and will soon include the company’s unified messaging software.


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