Avaya has taken the wrappers of a newly formed organisation focused on driving cloud products and services, called Avaya Cloud.
Former IBM vice president of strategic partners for cloud and Watson platforms, Mercer Rowe, has been appointed to lead the new cloud business as vice president and general manager of Avaya Cloud. At IBM, Rowe led global cloud and artificial intelligence initiatives.
Before joining IBM, Rowe founded and served as CEO of VMware vCloud Service, a joint-venture with SoftBank to deliver Cloud services in Japan. He also incubated VMware's own cloud service business, and spent a decade with cloud-powered start-ups in the enterprise software and service provider spaces, building sales, channel and services organisations.
"Mercer brings a wealth of knowledge that will help us expand our business in the cloud, which is critical to our growth," Avaya president and chief executive officer, Jim Chirico, said.
"By creating a business solely focused on cloud products and services, and with Mercer's leadership, we will accelerate the delivery of cloud solutions that meet the growing needs of our customers and partners."
Rowe will oversee public, private and hybrid cloud offers, including cloud R&D (research and development), application development and services as well as sales for the new business unit.
"The transformation of UC [unified communications] and CC [contact centre] to cloud delivery is still in the early innings and the growth opportunity for Avaya is one of the biggest cloud opportunities in the market today," Rowe said.
In January 2017, Avaya filed for Chapter 11 bankruptcy in the United States in order to reorganise the company to reduce its pre-filing debt, strengthen its balance sheet and improve financial flexibility.
In April, the vendor unveiled worsening financial numbers as it continued to combat rising debt levels, expecting declining revenue rates in the second fiscal quarter ended 31 March 2017.
Avaya subsequently filed an amended plan of reorganisation in its chapter 11 cases, supported by a majority of shareholders of its first lien debt.
In late November, Avaya said it expected to emerge from Chapter 11 bankruptcy in its home country by December, after the United States Bankruptcy Court for the Southern District of New York approved its second amended reorganisation plan.
Soon after the company revealed it had successfully completed its emergence from bankruptcy in the US.
Avaya closed its 2017 fiscal year with reported revenue of US$3,272 million, down 12 per cent compared to fiscal 2016.