Last week, CX Today broke the news that Avaya will enforce a monthly minimum commitment of 200 seats.
The move will impact Avaya Experience Platform (AXP) Public customers from June 30, 2025.
Customers with fewer seats may cancel their subscription without charge by providing a written notice to Avaya before June 30.
Alternatively, they can modify their subscription to meet the 200-seat threshold.
All AXP Public subscription bundles, including the “Digital Only,” “Voice Only,” and “All Media” offerings, will be affected.
Customers that use these in combination must ensure that, in total, their seat count meets that 200-seat minimum target.
The news comes as part of an “AXP evolution update,” which Avaya sent to its customers on January 31, 2025. Critically, the update noted that Avaya will also offer additional innovative cloud and on-premises solutions for seamless customer migration, with details available soon.
Lastly, the enterprise communications stalwart stressed how customers who meet or exceed the 200-seat target will not need to take any action.
With Avaya's longstanding heritage of serving contact centers of all shapes and sizes, the news will impact many businesses worldwide.
As such, CX Today gathered the thoughts of several industry analysts during its recent Big News Update. Here's what they had to say.
Not a Large Enterprise? Then, "You're Collateral Damage"
Zeus Kerravala, Principal Analyst at ZK Research, highlighted that the move shouldn’t come as a shock when considering previous statements by Patrick Dennis, CEO at Avaya.
He noted: "When he [Dennis] took the job, he said that they [Avaya] would focus on the G1500. It’s pretty clear that when you get down market, they’re not making any money off that space. It’s a small piece of the revenue and an even smaller piece of the profitability.
Avaya is focused on large enterprises, and if you’re not part of a large enterprise, you’re collateral damage.
Is this move going to create massive growth for Avaya? Perhaps not – but frankly, it’s their "only chance at survivability," explained Kerravala.
"It’s focused on the large companies where they make some money. And they have a chance to keep long-term customers this way."
All Eyes on The Competition: How Will They React?
Shelly Kramer, President and CEO of Kramer & Company, expressed that this move was a "no-brainer" when considering the CEO's responsibility for growth and profitability.
However, she told CX Today: "The first thing I thought about was that opportunity this presents for some of Avaya’s competitors."