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Avaya was forced into raising $600 million through funding and saw its share price dip by more than 90% since the beginning of 2021. For the third quarter, which ended June 30, revenue will likely hit between $575 million and $580 million. This is lower than the company’s original guidance of $685 million to $700 million.

The exact revenue uncertainty was the likely driving force behind the company removing Jim Chirico from his roles as president and CEO.  Chirico also resigned as a member of Avaya’s (News - Alert) board.

Looking to turn things around for the oft-troubled organization, Avaya named industry veteran Alan Masarek as its president and CEO and as a member of Avaya’s board of directors, effective August 1. Chirico will remain employed with Avaya through August 16 and will work with Masarek to ensure a smooth transition for all stakeholders.

Avaya CEO Alan Masarek

“We are thrilled to welcome Alan as president and CEO. Alan is a proven transformational leader, and after a rigorous search process, the board is confident that Alan is the ideal choice to lead the company into the future,” said Bill Watkins, chairman of Avaya’s Board. “We look forward to benefiting from his decades of industry expertise as we take the next steps to position the company for long-term success.”

Masarek is an industry innovator with a solid track record and expertise in enterprise communications and transformational operational experience bringing together UCaaS, CCaaS and CPaaS capabilities, which are key elements of the Avaya OneCloud Experience platform.

He served as CEO of Vonage (News - Alert) and a member of its board from 2014 to 2019. When Masarek joined Vonage, the company was not going anywhere. It had a stock price that was about $3.50 a share, and the company had revenue of about $850 million. He led Vonage through an era of transformation from a VoIP-based residential phone provider into a global enterprise cloud communications company.

Vonage completed eight acquisitions during his tenure, and market capitalization increased significantly. Masarek led a revitalization of Vonage’s culture, creating a talent-driven organization with a culture of agility, technology innovation and customer centricity.

Avaya hopes he can drive the same leverl of success at his new organization – one that once was among the best-known brands in business communications, but has since failed to capitalize on the cloud movement.

Before his time at Vonage, Masarek was director, Chrome & Apps at Google (News - Alert) Inc., from 2012 to 2014, following Google’s acquisition of his prior company, Quickoffice, where he served as co-founder and CEO. Quickoffice became an established embedded mobile productivity software solution, engaging more than 26 million registered users at the time of Google’s purchase.

“Avaya benefits from an industry-leading brand, world-class customer base and global reach, a rich history of innovation and strong partner ecosystem,” said Masarek. “I look forward to leveraging my background and years of cloud communications experience to propel Avaya to renewed growth and profitability as we build on the company’s strong fundamentals.”

Despite the revenue decline and the switch in CEO, Avaya is continuing to serve more than 100 million unified communications lines worldwide. Masarek, with his experienced background in the industry, is confident Avaya can be fixed and can provide the solutions customers need while improving stakeholder value.

“I intend to undertake a comprehensive strategic and operating review of all facets of the business with the goal of delivering industry-leading solutions to our global customers and enhancing value for all stakeholders,” said Masarek.

Edited by Erik Linask

Tue, 02 Aug 2022 03:52:00 -0500 text/html https://www.tmcnet.com/voip/news/articles/453082-avaya-brings-industry-vet-new-ceo.htm
Killexams : Avaya taps industry vet Alan Masarek as new CEO

Communications systems provider Avaya Holdings Corp. today named Alan Masarek its next president and chief executive.

Masarek will join the company on Aug. 1, succeeding Jim Chirico, who will also resign his position on the board. Chirico has been with Avaya for 15 years, serving as the company’s CEO for the past five. Previous to that, he was Avaya’s chief operating officer and global sales leader.

Masarek was most recently CEO of Vonage America LLC, where took the reins in October 2014 and stepped down in June of 2019. In that time, he completely transformed the company. When he joined Vonage, the company had nominal business revenue and was best known for the “woo-hoo-woo-hoo-hoo” jingle that it used to drive its consumer business. Vonage’s stock price was about $3.50 a share, the company had revenue of about $850 million and was heading nowhere fast.

At Vonage, Masarek methodically went about changing the company through a multistep process that started with changing the culture and making it a place people wanted to work. The next phase was to stabilize the business and he did that through a series of strategic acquisitions. The company purchased a number of unified communications as a service or UCaaS providers, such as iCore, SimpleSignal, Telesphere and gUnify.

That provided a stable base to let Masarek move Vonage into adjacent markets, which he did via the acquisitions of Nexmo, which provided a communications platform as a service, or CPaaS, and NewVoiceMedia, a contact center firm. That shifted Vonage from being predominantly a provider of consumer services to one that serves the needs of businesses. Ultimately it led to Vonage being acquired by Ericsson for more than $6 billion, which closed just last week under CEO Rory Read.

Although I have not spoken to Avaya’s board, I’m sure the expectations will be for Masarek to evolve the company, in a similar way that he did his previous company. Since the announcement came out today, many industry contacts have reached out to me and asked if Masarek is coming in to sell the company.

Given Masarek’s strengths as a builder, I believe it much more likely that he will try to use a combination of internal innovation and acquisitions to evolve the company and set it up for long-term success. Had the board elected to hire someone such as former McAfee Corp. CEO Peter Leav, who has a track record of fixing and quickly flipping companies, I would have thought an acquisition was less than a year out.

The company Masarek is taking over is an interesting one. Avaya has many strengths, such as a strong brand in communications, and it has the largest installed base of business communications customers, a Who’s Who of brands. The top banks, governments, airlines, healthcare agencies and other companies use Avaya equipment. I have personally spoken to hundreds of Avaya customers that view the company as a strategic partner.

Avaya has gone through its own transformation over the past few years and now has record cloud, partner, subscription and software revenue. This is a marked difference from the hardware and maintenance business that dominated the company’s balance sheet for decades. Avaya also has a strong cloud-native CPaaS platform to build new products on or integrate companies into. It’s my belief that all UCaaS and Contact Center as a Service or CCaaS companies will eventually compete on the strength of their CPaaS offering. That’s why Vonage bought Nexmo, and the current OneCloud CPaaS solution gives Avaya a strong foundation to build on.

Some of the challenges Masarek will face is although the brand is strong, it is associated with on-premises communications. Also, even if shifting to subscription and cloud was the right thing to do for the long-term health of the company, it did slow down revenue growth. Every company that has shifted from a onetime revenue model to subscription faces this, since it’s better from a revenue recognition standpoint to take a dollar today versus spreading it out over the term of the contract, although the latter provides much more stability and predictability.

Lastly, there is the debt as the company has: hundreds of millions in short-term debt and more than 2 billion in long-term debt. The debt is manageable, if the company can grow. If not, the debt-to-revenue ratio becomes too great to manage. That makes profitable growth a top priority for Masarek.

Additionally, I believe Masarek will need to invest more in marketing to help re-energize the Avaya brand, similar to what he did at Vonage. Under Masarek, Vonage dumped the cartoonlike logo and replaced it with the current “V” that looks more corporate. Since Simon Harrison has taken over as chief marketing officer, Avaya has shifted to a marketing-led organization, but I’d like to see more investment in this area to raise the company’s profile in cloud, customer and employee experiences, artificial intelligence and hybrid work.

Regarding Chirico, he leaves behind a stronger company than the one he took over. Although his last quarter as the company chief is punctuated with a pre-announcement of a big earnings miss, he did do many good things for Avaya.

As I mentioned earlier, Avaya’s revenues for cloud, partner, subscription, software and other meaningful metrics are all at an all-time high and ahead of the plan laid out a few years ago. He did much of this through financial engineering, changing sales models and internal product innovation, but he could never get the company to accelerate growth. He has the business pointed in the right direction, but now a new leader is needed to step on the gas and take Avaya to the next level.

Zeus Kerravala is a principal analyst at ZK Research, a division of Kerravala Consulting. He wrote this article for SiliconANGLE.

Photo: LinkedIn

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Thu, 28 Jul 2022 14:22:00 -0500 en-US text/html https://siliconangle.com/2022/07/28/avaya-taps-industry-vet-alan-masarek-new-ceo/
Killexams : Alan Masarek Takes Helm as Avaya’s New President, CEO

Alan Masarek, a three-decade software and cloud technology industry veteran, has assumed the dual role of president and CEO at Avaya (NYSE: AVYA).

He succeeds Jim Chirico, who departed the company after nearly 15 years of service, and will also serve as a member of the board of directors, Avaya said Thursday.

Masarek joins the North Carolina-based cloud communications company from Vonage Holdings, where he most recently served as CEO and a board member.

He previously worked at Google as a former director of Chrome and Apps following the search engine provider’s acquisition of his productivity software company Quickoffice.

Masarek also serves on the boards at contact data management firm SalesIntel, additive manufacturing company Markforged and connected vehicle data start-up Wejo, according to his LinkedIn profile.

Sun, 31 Jul 2022 22:07:00 -0500 en-US text/html https://www.govconwire.com/2022/08/alan-masarek-takes-helm-as-avayas-new-president-ceo/
Killexams : Avaya Appoints Alan Masarek as President and CEO

RALEIGH-DURHAM, N.C.--(BUSINESS WIRE)--Jul 28, 2022--

Avaya Holdings Corp. (NYSE: AVYA) today announced that Alan Masarek has been appointed as its President and CEO and as a member of Avaya’s Board of Directors, effective August 1, 2022. Mr. Masarek will succeed Jim Chirico, who will be removed from his positions as President and CEO of Avaya, effective August 1, 2022, and is resigning as a member of Avaya’s Board. Mr. Chirico will remain employed with Avaya through August 16, 2022 and will work with Mr. Masarek to ensure a smooth transition for all stakeholders.

Mr. Masarek is an industry innovator with deep domain expertise in Enterprise Communications and transformational operational experience bringing together UCaaS, CCaaS and CPaaS capabilities, which are key elements of the Avaya OneCloud™ Experience platform. He most recently served as CEO of Vonage Holdings Corp., where he led the company through an era of transformation from a VoIP-based residential phone provider into a global enterprise cloud communications company. Prior to his time at Vonage, Mr. Masarek was Director, Chrome & Apps at Google, Inc., following Google’s acquisition of his prior company, Quickoffice, Inc., where he served as Co-founder and CEO.

Bill Watkins, Chairman of Avaya’s Board, said, “We are thrilled to welcome Alan as President and CEO. Alan is a proven transformational leader, and after a rigorous search process, the Board is confident that Alan is the ideal choice to lead the company into the future. We look forward to benefiting from his decades of industry expertise as we take the next steps to position the company for long-term success.”

Mr. Masarek commented, “Avaya benefits from an industry-leading brand, world-class customer base and global reach, a rich history of innovation and strong partner ecosystem. I look forward to leveraging my background and years of cloud communications experience to propel Avaya to renewed growth and profitability as we build on the company’s strong fundamentals. At the same time, I intend to undertake a comprehensive strategic and operating review of all facets of the business with the goal of delivering industry-leading solutions to our global customers and enhancing value for all stakeholders.”

Mr. Watkins continued, “The Board and I thank Jim for his nearly 15 years of service to Avaya and wish him all the best in his future endeavors.”

About Alan Masarek

Alan Masarek has over 30 years of experience leading communications, information technology and business services companies. Most recently, he was CEO of Vonage Holdings Corp. and a member of its Board of Directors from November 2014 to June 2020. As CEO, Mr. Masarek ushered in an era of transformation for Vonage, transforming the company from a VoIP-based residential phone provider into a global enterprise cloud communications company. During his tenure, Vonage completed eight acquisitions, and market capitalization increased severalfold. As importantly, Mr. Masarek led a revitalization of Vonage’s culture, creating a talent-driven organization with a culture of agility, technology innovation and customer centricity.

Prior to Vonage. Mr. Masarek served as Director, Chrome & Apps Google, Inc. from June 2012 until October 2014, following the acquisition of his prior company, Quickoffice, Inc. Mr. Masarek was Co-founder and CEO of Quickoffice, Inc. Under his leadership, Quickoffice became one of the world’s most embedded mobile productivity software solutions, engaging more than 26 million registered users at the time of Google’s purchase.

Mr. Masarek earned his M.B.A., with Distinction, from Harvard Business School and his B.B.A., magna cum laude, from the University of Georgia.

About Avaya

Businesses are built by the experiences they provide, and everyday millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping what's next for the future of work, with innovation and partnerships that deliver game-changing business benefits. Our cloud communications solutions and multi-cloud application ecosystem power personalized, intelligent, and effortless customer and employee experiences to help achieve strategic ambitions and desired outcomes. Together, we are committed to help grow your business by delivering Experiences that Matter. Learn more at http://www.avaya.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains certain “forward-looking statements.” All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," “our vision,” "plan," "potential," "preliminary," "predict," "should," "will," or “would” or the negative thereof or other variations thereof or comparable terminology. Avaya has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While Avaya believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. The factors are discussed in Avaya’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) available at www.sec.gov, and may cause Avaya’s genuine results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Avaya cautions you that the list of important factors included in the company’s SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Avaya undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

View source version on businesswire.com:https://www.businesswire.com/news/home/20220728006008/en/

CONTACT: Tyler Chambers

Avaya Investor Relations

tmchambers@avaya.com

+1-669-242-8161

Alex Alias

Corporate Communications, North America

alalias@avaya.com

+1-669-242-8034

KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA

INDUSTRY KEYWORD: TECHNOLOGY NETWORKS OTHER TECHNOLOGY VOIP

SOURCE: Avaya Holdings Corp.

Copyright Business Wire 2022.

PUB: 07/28/2022 05:05 PM/DISC: 07/28/2022 05:06 PM

http://www.businesswire.com/news/home/20220728006008/en

Thu, 28 Jul 2022 09:06:00 -0500 en text/html https://www.joplinglobe.com/region/national_business/avaya-appoints-alan-masarek-as-president-and-ceo/article_25bc5370-d927-5954-856d-05d182c5172e.html
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