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Telepacific acquisition signifies continued consolidation of US market September 21, 2016

Posted by Matthew Townend in Uncategorized.
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On September 19th Telepacfic announced the acquisition of DCSI, this demonstrates the continued consolidation of the Cloud Comms and managed service market in the US. It is a very significant deal in the US market and Cavells strategic partner Q Advisors acted as the exclusive financial advisor to Telepacific in this deal.

It also raises the question of when we will see increased consolidation in the European Market, we saw Arkadin complete the acquisition of UK Microsoft expert Applicable in July but still we have a relatively fragmented marketplace. Cavell and Qadvisors have seen increased interest from both potential acquirers and sellers although deal volume is still relatively low.

Q Advisors Partner Michael Quinn will be presenting at Cavells European VoIP summit in Amsterdam on October 11th, and will also be at our March event in London. Their are a few tickets still available for the Amsterdam event available at:

http://www.cavellgroup.com/index.php/events/2016-05-24-15-31-41/benelux-voip-summit-agenda-2016

For more details on the DSCI acquisition links are below:

TelePacific Completes DSCI Acquisition, Creating National Powerhouse Delivering Managed Services with Five-Nines Guaranteed Performance

http://qllc.com/news/2016/09/20/q-advisors-represents-telepacific-transformative-managed-services-transaction-and-related-financing/

 

 

The concept of selling UC is dying! Service Providers offer industry/sector specific propositions to meet customer demand September 13, 2016

Posted by Dominic Black in Uncategorized.
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For well over a decade, the industry has been talking about Unified Communications, with vendors trying to push the idea that end users want to unify all their communications through one interface (normally vendor specific), and that they need to utilise a number of new communications mediums through this interface (including: Video, Presence, Collaboration, etc.).

When we look at the players who have been successful in selling hosted communications both in the UK and Europe, we see that very few are selling a concept of UC at all. What they have done well is they have segmented their customer base and they have produced bundled solutions that understand the “Context” within which the customer is operating and have offered solutions accordingly. Yes, there are some customers who want an all-singing, all-dancing UC experience, like you see in most vendors videos, but this appears to be a minority.

Our recent research on the Hosted Comms market shows that most service providers have developed their segmentation further, and they are now offering solutions that are designed to suit their customers’ needs in relation to the Vertical industry segment they operate in.

Figures have shown that 41% of the service providers tracked by Cavell, offer a selection of vertical solutions, 66% of which offer a public sector proposition, some providers selling solutions specifically tailored for one of the following public sector segments: local government, central government, education, healthcare, housing, public administration, justice, and emergency services.

The main commercial segments have been Financial (41%), Retail (38%) and Hospitality (23%). Other prevalent business categories vertically targeted by service providers are construction, media, travel & transport, and organisations operating in the legal sector. Cavell has also witnessed signs of verticalisation in technology, automotive, recruitment, logistics, manufacturing, third sector and professional services.

Matthew Townend, Director of Research & Consulting at Cavell stated: “The increased verticalisation shows an increasing requirement for Service Providers to offer solutions that recognise the context that their customers work and communicate in, rather than attempting to offer a broad based UC solution that attempts to dictate how they should communicate”.


Cavell Group have launched their latest UK Hosted VoIP and SIP Trunking market reports on the 2nd of September. For more information, please read our previous blog post.

Cavell Research Shows Customers Leapfrogging SIP to a Hosted VoIP Solution September 2, 2016

Posted by Matthew Townend in VoIP Numbers.
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Cavell Group’s latest IP Voice market reports show unexpected market dynamics, with the SIP Trunking market performing slower than expected and the Hosted VoIP market continuing to grow strongly.

Cavell has seen strong growth across all segments of the Hosted VoIP market in the last six months. The market has shown 11% growth reaching a total of 2,423,123 Business Hosted VoIP seats, while the SIP Trunking market has only grown 9.94% in the last six months to a total of 2,113,528 SIP trunks. This is a slowdown in the migration from ISDN to SIP Trunking and may show that customers are leapfrogging SIP to move directly to a hosted solution.

In the previous six months (June to December 2015) the SIP Trunking market had grown by 13.73%, hence during these six months the market has suffered a slowdown, which Cavell believe is due to a few key factors, such as BT’s announcement of 2025 as the End-of-Life of the ISDN Network having yet to stimulate customers and providers to make immediate migrations. Also, the market for SIP is becoming increasingly competitive from a price perspective, leading service providers to drive customers toward more lucrative Hosted VoIP solutions, and lastly, easy-to-migrate customers have already moved, meaning the remaining customers may need specific technical or commercial considerations.

Matthew Townend, Director of Research & Consulting at Cavell stated:

“There is probably not one Call Centre in the land that has not migrated from ISDN to SIP, but the remaining approximately 50% of the market set to migrate, is going to need more compelling commercial and technical reasons to move.”

“If providers do not build a migration plan for their ISDN customers, they are likely to see the Hosted VoIP providers move them to their services before they react”, he added.

If you are interested in finding out more about the UK Hosted VoIP and SIP Trunking markets, the reports have been released for purchase today and are available on our website: www.cavellgroup.com/uk-research-reports. or contact Francisca Dinga francisca.dinga@cavellgroup.com

 

 

 

 

 

 

 

 

 

 

 

 

Cavell is beginning latest round of research on the UK Hosted VoIP and SIP Trunking markets July 7, 2016

Posted by Dominic Black in VoIP Numbers.
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Cavell is commencing our latest round of research on the Hosted VoIP and SIP Trunking markets and is looking for input from Service Providers into our survey. As many of you are aware, the data that is inputed for our research is used to build a total market picture for the VoIP and SIP markets across the UK and individual company data is confidential.

Cavell will be running a webinar in August to go over the top level findings with those companies that have contributed to the survey and will receive discount codes to our upcoming European VoIP Summits.

Please follow the links for each survey below, each one should take around 5 minutes and your input is greatly appreciated

Hosted VoIP

SIP Trunking

If you would like to discuss this research or speak to one of our analysts, please contact Dominic Black at dominic.black@cavellgroup.com

 

Cavell is pleased to announce two new European VoIP Summit dates. June 15, 2016

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After the success of the past two European VoIP Summit’s in London, Cavell is please to announce that we are taking the event to Amsterdam on the 11th of October 2016 and returning to London on the the 9th March 2017.

The European VoIP Summit is the largest event focused on Service Providers with the leaders of the VoIP industry coming together for a day of panel discussions, keynotes and presentation from experts and market leaders in the market from across Europe. Our previous event earlier this year in London had over 220 delegates from 58 European Service Providers, see more information here from that event

Amsterdam – 11th October 2016

As Cavell expanded our research team into the Dutch market with Rob Kurver joining the team in December, it was an easy decision to try to replicate the event in the most advanced VoIP market in Europe. We are happy to announce that Broadsoft and Genband will be returning as Gold Sponsors although there are plenty of opportunities still available.

You can find out more about the event and buy tickets here, we have finalized the Agenda and are currently signing up speakers for the event.

London – 9th March 2017

The European VoIP Summit 2016 in London earlier this year saw over 220 delegates from 58 Service Providers from around Europe come together for a discussion on the trends and dynamics of the European VoIP industry.

We have booked the QEII conference center in the heart of Westminster, London for the event, with views looking over the Houses of Parliament and Westminster Abbey. As we sold out last year, we have expanded the space to accommodate many more attendees and expect around 250 this year. Yealink have continued their association with our event and will be Gold Sponsors for the 2017 event.

We have our agenda here for the London event and will be propagating the list with speakers when they confirm. Tickets can be purchased here

Speaking and Sponsorship

Speaking slots and Sponsorship is still available for both events, please contact Dominic Black at dominic.black@cavellgroup.com if you are interested in sponsoring or speaking

GoDaddy enters the VoIP communications space with acquisition of FreedomVoice May 19, 2016

Posted by Dominic Black in Uncategorized.
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GoDaddy have acquired FreedomVoice, a US based VoIP Provider, to deliver voice services to their portfolio of services tailored towards SME customers. With 14m customer globally, GoDaddy has a huge opportunity to cross sell services to these customers and recognises that voice communications solutions are key to SME customers and this acquisition will enable them to target their customers effectively.

FreedomVoice cost GoDaddy a reported $42 million in cash plus up to $5 million in potential future milestones payments with most of the team remaining with FreedomVoice. With over 200,000 SME customers, the synergies between the two companies are clear. It will be interesting to see whether GoDaddy can find ways to use technologies like WebRTC to deliver integrated voice products into their current solutions to really deliver an differentiated voice product to their customers.

Read about the acquisition here

Genband Perspectives 2016: Contextual Communications, Disruptors, the Future of Service Providers, CPaaS and Kandy May 13, 2016

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David Walsh saw the rise of Contextual Communications being one of the drivers of increased communication. His belief that by enabling people to communicate with whatever device and through any application that they want will increase the level of communications between parties which will in turn facilitate collaboration and increased productivity.

XO, the largest SIP Trunking provider in the USA, gave a good example of this with their Contact Center solution which use the Kandy platform with WebRTC integrations to allow customers to contact them using any medium that they want, be it voice, email, IM or video. By giving customers the choice of communication, they are able to improve the customer experience and address the customers’ needs – a key priority for contact centres.

Disruptors are driving innovation as companies look for ways to stay relevant in their industry

Katrina Troughton says that IBM are seeing that business leaders are facing more challenges then ever before. With the lifespan of Fortune 500 companies dropping under 15 years due to disruption, CEOs are looking at ways that they can keep their employees engaged and stay relevant in today’s market. There is a big push for companies to innovate to survive but many find it difficult to do so as they don’t have the skills.

This is relevant to VoIP providers as an increasing homogenisation of products, where differentiation is around pricing and features, is becoming ubiquitous across the board. As the Service Providers have a great understanding of their customers, as they work with them on a daily basis and understand their challenges, they are in an unique position to be able to give them the tools to communicate and enable greater collaboration.

What will a Service Provider look like in the future?

The issue for Service Providers is that they have generally been poor at creating their own applications as they do not have the development skills to create solutions for their customers, as their focus is around providing a voice service, not enabling collaboration. Roy Timor-Russo of Genband thinks that Genband will be able to fill that role of adding value with their apps and knowledge of what has worked for other Service Providers in other markets and alongside the Service Providers core voice competency.

Genband see their position in the market is providing the platform for application developers to integrate their features into. As one of the first movers into the CPaaS (Communications Platform as a Service), the Kandy platform was built to allow developers to build applications for Service Providers, Enterprises and Vendors to quicken the time to market. David Walsh highlighted in the press conference at the end of the first day the need for all members of the telecoms ecosystem to be able to ‘Fail Quick’ with new features and that long development times do not always translate into successful stories. 90% of applications built will not be a success but there needs to be an acceptance and understanding that failure will yield results.

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It is still unclear what role Service Providers will play in the future, whether they will simply be running dumb ‘pipes’ or their customer will be facing background, meaning that they are well positioned to understand their customers needs and build the solutions to fit certain business verticals. What will be interesting is whether there will be a demand for a basic VoIP/UC solution in the future and how Service Providers will be able to cope with an increasingly development driven approach.

Is Kandy going to be future?

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We have seen a number of CPaaS providers appear over the last few years and it is still not clear who will emerge as a success. What is interesting and will be a challenge for Genband going down the route of Kandy and CPaaS is how they will maintain revenues in the future as customers adopt a ‘Click to Consume’ model, choosing only the applications that are relevant to themselves. From a company that is used to selling large CAPEX solutions, making a move to tight margins on applications over a base price of $2/user/month may prove difficult in the short term. Genband have created a good story with the Kandy platform and it will be interesting to see how the CPaaS ecosystem progresses in the future.

“I want to be the platform”,  “No, I want to be the platform”… “Who is going to be the Communications Platform of the future?” May 11, 2016

Posted by Dominic Black in Uncategorized.
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In a week, when Vonage USA spends $230m on Nexmo, a Communication Platform business that most of you will not have heard of, and when a traditional communication hardware provider like Genband spends a large proportion of its annual conference talking about its own “Kandy” Communication Platform as a Service (CPaaS) platform, many Service Providers will be wondering what is all the fuss about.

Well, it’s simple: Service Providers, Vendors, System Integrators and Developers are all trying to work out what their role is going to be in this new world of communications and they may as well have to fight for their very future and relevance.

Where the battle is going to be won and lost is by making communications relevant and in context of customers and consumers’ current and future working patterns, and help revolutionize business process or disrupt markets with new models of working. This is going to require many to have the capability and ability to move quickly and agilely whilst maintaining low costs in serving these requirements.

Gone are the days when it was about UC and Providers being proud that they have packed a whole load of irrelevant features into their UC client or equipment, often provided by slow moving vendors.

The future is about providing a platform that people can integrate and develop on, to jointly solve both specific and generic customer problems. This development may be done by the Platform provider or by enabling developers externally to access the platform and develop their own solutions on top.

Not surprisingly traditional ecosystems are also being reinvented with people realizing the majority of the value will be in providing the platform. Traditional Vendors are pitching themselves against their Service Provider customers, and System Integrators are realizing that they might own the key to accessing the development resources. Within this melee, new providers such as Twillio and Nexmo have filled this void, offering developers with a global platform on which they can develop.

At the recent Genband Conference we started to hear the Service Provider angle with CenturyLink describing how they are looking to build such a platform, which will bring them the benefit of quick and agile product development for their own customers. They will be able to go to a 2 or 3 developers with a brief of their requirements and potentially get custom differentiated apps developed cheaper and quicker than previous models.

It’s not all over for the Service providers as a couple of key questions are still to be answered in many cases:

  • Who has the ability to: sell, assure, bill and deliver these applications?
  • Who either has their own development resources or controls access to these resources?
  • Who can provide a truly global or regional capability for customer?
  • Who can translate customer business requirements into real life solutions?
  • Who has the ability to potentially integrate to multiple platforms for a customer?

In up coming posts and research we are exploring these questions further, and we are already running strategy sessions with Service Providers to answer these questions.

For more details please contact: Matthew.Townend@cavellgroup.com or Dominic.Black@cavellgroup.com.

UC Expo: Millennials, Collisions & Video April 28, 2016

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Last week at Olympia London we saw many vendors repeat the same messages as they addressed the impact of millennials on the workforce, digitisation and video. Cisco highlighted the importance of using collaboration tools to create ‘collisions’ in the workforce – we understand the point they were trying to make but the term is often perceived with negative connotations, particularly in the insurance industry!

Microsoft’s put significant effort into the event with a big presence on various stages and in the exhibition space. They are now strongly positioning themselves in the UC space and Cavell believes that their success will continue in the coming years, especially in Large Enterprises. Microsoft also demonstrated their Cloud PBX for the first time in the UK which allows users to run Skype for Business services in Office 365. Handset manufacturer Yealink were also showcasing their Skype for Business integrations with their new range of handsets.

What Cavell are seeing more and more of is vendors driving innovation by encouraging developers to develop on their platform. We are interested to see how this plays out in the future as all major vendors, including Broadsoft, Genband, Cisco, Microsoft, are undertaking various Hackathons. Cisco’s announcement in March shows their commitment to having external developers use their platform as they hope their Spark Innovation Fund of $150m dollars will drive development.

“Disrupt or be disrupted.” – Marianne Calder, Cisco opening keynote, UC Expo 2016

Cavell will looking in-depth in the next few months of what how the relationship between Service Providers, Vendors and Developers will change in the future as this is an area where there is some really interesting changes that we think will impact the Voice market in the future.

Cavell are off to Orlando next week for GENBAND Perceptives 2016 where Matt Townend is speaking. We look forward to seeing all those who are attending there!

Mitel announces intention to acquire Polycom April 18, 2016

Posted by Dominic Black in Uncategorized.
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The deal is expected to close in Q3 for about $1.96 billion in cash and stock, and the purchase will add Polycom’s collaboration, videoconferencing and handset range to Mitel’s existing product set.  Their is an obvious synergy around expanding Mitel’s video and conferencing solutions and the ability to sell to their extensive current customer base and channels

Their joint press release states:

“The combination of Mitel and Polycom will create a new industry leader leveraging Mitel’s recognized leadership as a pioneer in global communications with Polycom’s well-known premium brand and industry-leading portfolio in the conference and video collaboration market.”

The acquisition also raises a couple of questions as well:

One interesting question that this will raise is how will Service Providers who are offering a rival solution to Mitel react to now selling Polycom handsets? This is especially relevant to those who are heavily aligned to Polycom, such as those selling Broadsoft solutions. Mitel has not always made friends with other cloud vendors with its very aggressive claims about market leadership, which certainly upset other vendors. Whether this opens opportunities for handset manufacturers such as Yealink, Cisco, Snom will be interesting to see in the next few months.

“It will be interesting to see whether Broadsoft, Microsoft and others will still be keen to partner and work with Mitel to promote Polycom handsets in the future” – Dominic Black, Cavell Group

In recent years the overall market for hardware based Video Conferencing had seen a general down turn as OTT and alternative solutions hit the market. This had lead Polycom to focus more on its core handset offering such as the VVX etc., where it has been extremely successful.  The synergies in this area of the market are probably less pronounced than in the Video Collaboration and conferencing market areas.

“Synergies in the Video Conferencing and Collaboration areas are more promoted than in the core handset area, where Polycom has been refocusing so it will be interesting to see how these synergies are leveraged.”

This acquisition is one of many we expect in the market this year, as traditional equipment providers are forced to realign their businesses in the line with Cloud and IP transformation. We expect to see continued consolidation both at the Service Provider and supplier level in coming months.

Read more: http://investor.mitel.com/releasedetail.cfm?ReleaseID=909405