Telecoms giant, Avaya have filed for section 11 protection in the US.
To put it bluntly, the company may go bust.
This is a major player in the telecoms sector, a mature organisation with an excellent reputation as a leader in their field.
What went wrong? Poor profit performance has been further eroded by huge interest payments on a colossal debt of 6.3 billion dollars.
Why did this happen? Well, the goal posts have moved in the telecoms game and sadly, Avaya are largely reliant on an outdated technology concept which has been eclipsed by the new model of telecoms services delivered as a cloud solution.
Industry leading supplier of cloud telephony, Broadsoft, has commented that the writing has been on the wall for this sort of drama.
Now we can expect a series of mergers, acquisitions and failures in the areas of the telephony business which rely on legacy technology.
Cloud telecoms booming. Conversely, the branch of the telecoms sector specialising in cloud hosted VoIP is growing with many of the players experiencing strong and accelerating growth.