Two More Acquisitions

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Two More Acquisitions

According to a letter to PAETEC employees, "Earlier today, we announced plans to acquire XETA Technologies, Inc. which will dramatically expand our capabilities to serve customers with unique, equipment-based solutions nationwide. XETA is very similar to Quagga (or what we used to call PAETEC ISG), providing innovative solutions to enterprise customers while delivering exceptional customer service."

PAETEC is using this $61M acquisition to boost its Managed Services business to the enterprise space. But at the same time they are worrying the Channel. VAR's already had concern about Quagga, but now that PAETEC seems to be going deeper into the hardware space, VAR's are beginning to worry.

It's not just PAETEC either as Cbeyond Cloud Services will be chasing customers that its partners typically chase. You will have to a be a savvy Channel partner in 2011. Or pick your vendors better.

When you consider that PAETEC is closing its buy of CavTel, doesn't this make you shake your head? PAETEC grabs Quagga for VAR and Enterprise; then they grab fiber with CavTel - and the SMB space. Now XETA, the CAR and Enterprise space again. Maybe the Rochester Telecom Kings aren't sure what 2011 will bring. Certainly with CenturyLink integrating Qwest, there is a chance to grab Enterprise, but Level3 is better suited for that business. And in this buying spree, I don't hear anything Cloud. Sure, CavTel had data centers and PAETEC built one but where's the buzz words around these acquisitions? The Street likes to hear buzz words.

Last week, privately there was speculation about IP5280 since their presence at ITEXPO quietly disappeared. Apparently, the Rocky Mountain regional Broadsoft-based ITSP was busy acquiring the Hosted VoIP and Internet services business accounts of RockyNet. Much needed consolidation in the Hosted VoIP space. No idea what the numbers were although the press released mentioned that this 'increases IP5280's customer base by over 15%" if revenue went up accordingly that amounts to a $825K deal based on INC5000 notes.

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