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Mitel Announces Significant Changes to Business Strategy

May 03, 2011

Mitel, a provider of unified communications and collaboration software solutions, has announced significant changes to its business strategy.

As part of the growth plans, Mitel will simplify its organizational structure, focus on research and development investment for the mid market, and realign sales and channel in the U.S.

“I am implementing a strategy anchored by three initiatives in a multi-step approach to grow Mitel's business as a unified communications and collaboration provider,” said Rich McBee, CEO of Mitel, in a statement.

“First, we will simplify our business. This means creating a flatter organization comprised of two geographical sales organizations and three key business units. This new, more agile organizational structure will enable Mitel to better serve its customers and innovate more quickly, all with the goal of increasing shareholder value,” McBee added.

As per the second initiative, Mitel will increase its research and development investment on products serving the high-growth market of 100 to 2,500 user organizations. The company will continue to innovate in this area to offer flexibility to both IT and the end user and to leverage the opportunity in the mid market segment.

Mitel will also reorganize its U.S. sales organization to effectively deliver its products through partners by increasing investment in its indirect channel, facilitating growth and expansion at local, regional, and national levels. It will also increase its focus on direct sales team on a select group of customers.

The company is also planning to exploit its market leadership in voice virtualization. This means continuing to partner with virtualization provider VMware to jointly innovate in this area. This has been a differentiator for Mitel in acquiring new customers and providing a migration path for existing Mitel 3300 IP Communications Platform customers to Virtual Mitel Communications Director.

Mitel recently announced the availability of its Unified Communicator (UC) Advanced software for devices that run on Google's Android mobile operating system.

Rajani Baburajan is a contributing editor for unified communications. To read more of Rajani's articles, please visit her columnist page.

Edited by Carrie Schmelkin

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