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Article: The Death Rattle of On-Premise Telecom

VORADIAN | Business Telecommunications Service
Published by in Business Telecommunications ·
in Voradian Blog  By: Ebey J. Ninan  October 05, 2018

For the past month, every analyst, pundit, and blogger has been putting their own spin on Cisco’s acquisition of BroadSoft. Some are saying that the biggest impact will be fewer available customers due to consolidation. Others say there will be new opportunities, because many companies (particularly enterprises) have gone to BroadSoft because they did not want to use Cisco or Microsoft.

Art Schoeller, vice president and principal analyst at Forrester Research has another take. He believes that this is all about getting traction for Cisco Spark. “It’s as if the train had already left the station [for Cisco]. Nine times out of ten, BroadSoft was what I call the ‘weapons merchant,’ the white-label solution for many Tier 1 carriers … it’s cloud, multi-tenant, and BroadSoft has already worked through the economic model of working with a partner ecosystem that’s driving subscription solutions, not premise[s] solutions. So, Cisco is trying to get traction in the market for its multi-tenant solution, i.e. Spark and the future of Spark … the channel says, ‘I’ve already got one, BroadSoft.’”

It’s about Buying Access to Telcos

Rob Salvagno, head of Cisco’s M&A and venture investment team, wrote that Cisco chose BroadSoft not only for its portfolio of cloud collaboration platforms and business applications – assets Cisco already holds – but for BroadSoft’s partnerships with more than 450 telecom carriers in 80 countries, including 25 of the top 30 globally, and some 19 million BroadSoft business subscribers. This is simply Cisco’s way of getting a stronger foothold in selling products to big telecos. But Lorna Garey at Channel Partners writes, “Scooping up BroadSoft also demonstrates that there’s a shortage of IT talent — and Cisco is recognizing it.” or is it about the End of the On-Premises telecom world?

For those of us in the trenches selling UCaaS, I’ll go with this statement from Drew Lydeck, co-founder and president of Avant Communications, “This is the biggest validation that we’ve seen that the on-premises telecom world is officially over. Cisco’s acquisition of BroadSoft is also a validation that everything is moving to a software-defined, subscription-based economy.”  This is particularly true when you consider that BroadSoft can be used to displace the premise-based Cisco Call Manager.

You can see from every indication in the business communications trend, that the UCaaS market is growing leaps and bounds globally. There are still plenty of customers, both SMB and Enterprise, whose next phone system will be cloud-based. They will want to buy the service from a provider that can give them the customized service and support that only a local provider with national strength can give them. Check out Voradian’s hosted communications services for business.



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