Comprehensive software reviews to make better IT decisions
Alcatel-Lucent Enterprise Announces Q2 Performance
On August 25, 2020, Alcatel-Lucent Enterprise (ALE) announced its Q2 performance. As expected, the impact of the pandemic across key ALE geographies (France, Southern Europe, Latin America, and North America) has impacted the organization’s revenue. For Q2 2020, ALE saw a 17% decline year over year (YoY), despite reporting an operating profit from reducing operational expenditure in Q1. However, while the pandemic has decreased performance in on-premises system deployment, ALE cloud-based services are seeing significant growth.
Key takeaways from ALE’s Q2 performance for Unified Communications (UC) include:
- In small to mid-sized businesses, on-premises systems decreased by 55% YoY during Q2. This was due to many of ALE’s key geographies being under lockdown, limiting in-person interactions and deployment.
- ALE’s cloud-based services registered 51% revenue growth YoY for Q2. Rainbow UCaaS licenses increased by around 100,000 new users, and OpenTouch Enterprise Cloud increased growth by 29% YoY for Q2.
- The total number of ALE cloud users at Q2’s end was over 2.676 million.
Other ALE news included the launches of Rainbow UI (a Rainbow chat service for partner websites) and a new Rainbow data center in Australia.
ALE’s Q2 performance perhaps comes as no surprise. We would expect on-premises deployment to suffer during a global lockdown, leading to cloud-based solutions thriving. Indeed, if we didn’t see revenue increases for ALE’s Unified Communications as a Service (UCaaS) offering, Rainbow, we would be justified to wonder what might be going wrong.
ALE’s performance maps onto the current trend of the UCaaS market continuing to eat up the private cloud and on-premises UC solutions. As Omdia’s latest research suggests, while UCaaS currently occupies just under a quarter of the UC marketspace, it is clear that the effects of the pandemic are rapidly shifting UCaaS’s influence. With remote and hybrid work likely here to stay, we should expect to see ALE’s Q3 performance reflect further revenue increases for its cloud-based services and losses for on-premises deployment.
Source: SoftwareReviews Unified Communications as a Service Data Quadrant.
For Info-Tech members who want to start leveraging the benefits of a cloud-based telephony system, use our process in Modernize Communications and Collaboration Infrastructure to modernize your legacy private branch exchange (PBX) system. While SoftwareReviews’ data does not rate ALE’s Rainbow as a market leader in the UCaaS space, Rainbow performs well for ease of data integration, ability to adapt to market changes, and availability and quality of training. Indeed, for small to mid-sized businesses with a skills deficit in the shift to a UCaaS solution, Rainbow ought to be shortlisted.
Source: SoftwareReviews Alcatel-Lucent Rainbow Scorecard. Accessed September 7, 2020.
Want to Know More?
- SoftwareReviews Scorecard for Alcatel-Lucent Rainbow
- SoftwareReviews UCaaS Data Quadrant
- Modernize Communications and Collaboration Infrastructure
This note highlights the top three trends to watch for in the 2022 UCaaS marketspace: AR/VR digital workspaces will see sustained investment; UCaaS and customer experience management technologies will continue to blend; and speech functionality will become more sophisticated through AI-driven technology.
Enterprise Connect is North America’s premier conference for advances in communications, collaboration, and customer experience technologies. In this note, Thomas Randall provides his trends and keynote highlights for Enterprise Connect 2021, held September 27 to 29.
On August 24, 2021, Alcatel-Lucent Enterprise briefed its Q2 performance for FY21. Q2 saw positive revenue growth of 11.4% YoY, delivering 20% against the previous year.
On July 14, NEC and Intermedia briefed Info-Tech about their ongoing partnership and continuing global rollout of UNIVERGE BLUE.
On May 24, 2021, Alcatel-Lucent Enterprise (ALE) briefed on its Q1 performance for FY21. FY20 saw ALE’s global revenues impacted by the COVID-19 pandemic, and these effects continue to ripple into FY21. While global cloud sales continue to dominate, alongside a strong quarter in China, global revenue was down 5% year-over-year (YoY).
On April 28, 2021, Windstream briefed Info-Tech on its UCaaS portfolio, which includes their primary pure cloud offering, OfficeSuite UC, alongside their other solutions powered by Avaya and Mitel.
On April 20, 2021, Nextiva briefed Info-Tech on its Nextiva One suite, with a focus on its communication applications: Business Phone (voice) and Cospace (videoconferencing and collaboration). Nextiva plans to expand beyond the US later this year.
On February 22, 2021, Alcatel-Lucent Enterprise (ALE) released its Q4 report. While overall global revenues were down on last year’s Q4, ALE’s cloud-based solutions continued to surge. These surges are in part explained by mid- to large-sized organizations beginning significant investments to prepare for a post-pandemic world.
On December 8, Masergy – a software defined networking services company – briefed Info-Tech on its UCaaS solution. Masergy UCaaS is built on the Cisco collaboration platform, providing a value-added service through Masergy’s SD-WAN solution and Secure Edge Network.