The WSJ posted revenue numbers from Shoretel. I am taking a guess that these would be industry average or demonstrate what all PBX vendors are seeing. ( could be wrong.)

"Recurring revenues, which consist of cloud monthly recurring revenues and support revenues, represented 40% of total revenue in the third quarter of fiscal 2014 and reached an annualized value of $130 million." So 30-35% of revenues are now coming from HPBX MRC.

As an inter-Connect or a VAR with hardware heavy business (revenue) models, now would be a good time to start putting a monthly quota on MRC sales every month. You have to start now in order to build up enough of a recurring revenue that it can steady out hardware sales losses.

"Hosted revenues of $22.6 million were up 24 percent year-over-year and 4 percent sequentially. Non-GAAP gross margin on hosted revenues was 41.1 percent in the third quarter of fiscal 2014." HPBX revenues are going up. Everyone confirms this. What should concern you: If your HPBX revenues ARE NOT increasing by 10-15%. [You might have to change your sales compensation program in order to incent the sales team to sell MRC over NRC.

I don't know how they define "gross margin", but considering it's a homebrew hosted softswitch (not M6, Meta or BSFT); there has to be some labor overhead for the developers that keep it spinning, secure and up-to-date.

"For the third quarter of fiscal 2014, total revenue was $82.4 million, an increase of 5 percent compared to the third quarter of fiscal 2013." So ShoreTel is doing $320M per year. Considering that M5 was doing $48M per year; it looks like they grew that to $88M since 2010.