Skip to main content

Broadsoft and the UCaaS Sector Today

On an analysis call about Broadsoft and Broadcloud today, no mention of Broadsoft selling direct to end-users via the channel. Yet I have it confirmed that channel partners CAN sell BroadCloud seats putting the deals through Ingram or Telarus to get paid commissions.


Now BSFT is like every other vendor: competing directly with their clients.


There is a rumor that BSFT will be launching a CPaaS soon. That would make them compete against Vonage/Nexmo, twilio and their own vendor Bandwidth.com. Any revenue is needed to keep that stock up.


No idea why Avaya is on a call about BSFT, except that Avaya is releasing a new firmware upgrade for its handsets to re-configure them to be compatible with Broadsoft. So that means another handset vendor that is certified for BSFT -- at a time when handset sales are flat or declining in lieu of softphones.


Slack came up in the same breath as UC-One often. FYI.. Slack has more than 5 Million daily users -- that is more seats than MITEL has (3.2 million). They have 1.5 million paying users, which is more seats than any UC player has.


Amazon who is working with Level3 (soon to be C-Link) and Vonage. They have Cloud Contact Center. They have free tools for contact center. They have Chime, the Webex competitor. If they pivot to UC for SMB, it may be game over when they figure it out.


The only competitors mentioned on the call were RingCentral, 8x8 and Cisco Spark. RC is so good at marketing that people think they are the king of the UC ring. They are not. The surprise to me was no mention of Microsoft Skype4B. Once voice enabled becomes standard, many Hosted VoIP players will have to pivot from dial-tone replacement.


UCaaS functionality is about the same across the board. So how are channel partners choosing a UCaaS Provider to work with? Price; Commission (SPIFF); ease of doing business; or a relationship with the vendor.

Comments

Popular posts from this blog

3 Things Changing the Channel Forever

There are three things happening that will change the channel forever. And cloud isn't one of them, although indirectly it is.

   One of the biggest factors affecting the channel is the Age. Partners are getting old. They are aging out. And no new blood is coming in. About one-third of the channel has already left - either retired, sold or pivoted to other things (like software). One estimate was that 700 new vendors entered the IT/telecom space in the last 3 years. At least that many. All with the expectation that channel partners will flock over and sell their stuff.

    It is more difficult today to be an Agent. When you made big bank selling T1 and LD, it was easy to transition into the Agent space. Today, notsomuch.

 If you sell a 100MB Internet pipe for $800, you make $120 per month for 3 years BUT you will likely not get paid for 180 days after the contract is inked due to process, install, build, turn up and billing.

 If you sell a 110 seat UCaaS deal at $20 per seat (a…

Broadsoft (and Others) For Sale

Rumor has it that Broadsoft hired a banker to look at a sale (to a private equity firm most likely). This rumor has been reported by William Blair, Yahoo News, Light Reading and more.

Note reports that Broadsoft is for sale are accompanying reports that 8x8, RingCentral and others are also looking at strategic options.

There are a number of indicators that UCaaS is in trouble: Avaya in bankruptcy; Shoretel being grabbed by Mitel; Broadview to Windstream - to name but a few. There is also the big problem that keeping the sales engine going at 20+% year over year is not just hard but impossible. [In Fusion's investor presentation on the Birch acquisition, FSNN notes that organic growth is 2-4%!!!]

Most providers are not profitable. Light Reading reports, "Like 8x8 and RingCentral, BroadSoft has been growing its business but has struggled to turn that growth into operating profits. In the second quarter of this year, the company reported a 9% year-on-year growth in revenues to $…

Secrets for Channel Managers (webinar)

Are you a Channel Manager?

Are you looking for some tips on how to improve your job performance?

Then join me for Secrets for Channel Managers, a 50 minute webinar for channel managers to learn tips and tricks before the Q&A. This webinar will be August 11th at Noon Eastern time. The cost is just $25 per person. Register Here!


Secrets for Channel Managers (webinar)
Aug. 11, 2017 at Noon ET
Register Here!

Agenda:
Getting Attention
What's more important than Recruiting?
Are you leveraging Pareto?
Elements that Matter

Send your Questions in ahead of time so I can answer them!