End of Year Summary (Tidbits part 2426)

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

End of Year Summary (Tidbits part 2426)

Lots of lists and best of posts out there. I am just going to run through the tidbits that I thought were interesting.

Citrix bought the auto-attendant in the cloud company, Grasshopper, earlier this year for about $161.5 M per 10Q filing. Grasshopper revenue was about $50M if you consider ARPU of $11 and about 350K users. That is like 3.2x revenue. Not bad for the boys in Boston. Now of course Citrix is in the midst of a huge re-org. Good luck with that in 2016.

A good read on cyber-security and strategy in this article.

Additional material from Jon Arnold to accompany the Open Source podcast we did and the Open Source for SP ITEXPO session coming up in January.

The Motley Fool spends a lot of time analyzing telcos for stock reasons (like in this one about AT&T's prospects in 2016). I am unsure if they actually understand the business though. Gary Kim explained that IoT hype has more to do a must-have revenue stream for the cellcos. Then Gary takes a dive into the change in revenue for the US carriers in the last dozen years. VZ, AT&T, Frontier and C-Link all have different growth strategies, notwithstanding the fact that all these pies are flat or shrinking - and with increasing competition which means price pressure.

In the UCaaS space, despite the competition, there hasn't been a price war. It could be because there just are any clear winners - and less than 15% of the market has gone to UCaaS so far. Maybe once it hits 40% penetration, it will become like SIP Trunking.

Canadian carrier, Allstream, is coming to the US with a UC&C offering from Cisco. Allstream is being acquired by Zayo. Onvoy is a subsidiary of Zayo.

Of all the UC lists, the only take-away is that there is a distinct line between buyers wanting UC&C and dial-tone. The key is to distinguish, but of course we don't. Most businesses just want key system replacement or cheap voice, but we shovel a UC solution at them HOPING they will adopt it. That is like someone wanted a smartphone and you sell them a laptop with UC-One installed.

The UC&C crowd will need to pivot to Workflow or some other name that represents something like the Office365/Lync/SfB that it will be competing against. Packaging conferencing with Hosted PBX is just not going to work.

The interesting thing is that no one talks about the effect that Twilio and Flowroute are having on some carriers.

This was the year that was supposed to be WebRTC, instead it was API, because again innovation in our space is anorexic.

There was a lot of consolidation in UC from ThinkingPhones, Vonage, Onvoy. There were other deals, the strangest being Alteva-Momentum due to the RLEC piece. Birch and TNCI made inorganic growth moves (that likely won't amount to much of anything). The biggest problem -- as so many know -- isn't the buying, it is the integrating. It is being able to execute on an order from quote to billing. And most of the companies that done acquisitions have done a piss poor job of integrating anything and being able to execute on much. Cable would have eaten their lunch with pricing and capital any way, but these carriers made it easier by screwing up so many things that no one wants to use them any more.

The poor folks at TWC and BHN have spent another year in limbo waiting to be bought. That sucks!

AT&T took over DTV now what?

What happens with XO, ELNK, Integra? CLECs aren't exactly killing it these days.

Windstream will still struggle. All year in 2016. Cable pressure will ease up a little while the acquisitions of Cablevision, Suddenlink and Charter-TWC-BHN happen. But Mediacom, Cox, WOW! and others will make it difficult for CLECs through 2016. That in turn will make it difficult for the Channel.

BTW, Voxbone quietly got Acquired by Vitruvian Partners on August 20, 2015 according to Crunchbase.

"Autotask Corporation has agreed to acquire Soonr, a provider of enterprise secure file sharing and collaboration services for IT business managers," per Channel Vision mag as we close out 2016.

Happy New Year!

Related Articles to 'End of Year Summary (Tidbits part 2426)'
Featured Events