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Broadsoft Goes Deep in White-Label

These acquisitions are coming faster than I can type!!! Sheesh! Broadsoft is buying VoIP Logic!

This is ironic because when BSFT bought Intellinote and made a bunch of announcements about spreading BroadCloud and BroadBusiness, I remarked they should just buy VoIP Logic. And then they did.

This adds some white-label expertise to the mix for Broadsoft as it looks to ramp up white-label revenues. There aren’t any more carriers to bring on the BroadWorks platform, so from here on out, BSFT has to sell white-label licenses. And acquisitions make Wall Street happy because you confuse the organic revenues with inorganic ones.

It pivots now from a software company to a service provider — and directly competes against many of its clients either directly or indirectly. As it powers Verizon’s One Talk, Rogers’ Unison and ACCESS4 (in Australia), it is picking one carrier in a market over another. This isn’t sitting well with quite a few BSFT clients.

But what can you do? On the one hand, BSFT should have been a more innovative software company (where’s the Slack integration?). On the other, it decided to look quarter to quarter at licensing revenues. It didn’t want to become like Taqua (who was scooped up by Sonus ).

The VoIP industry has a problem: too many providers, more coming every week and not enough buyers. It reminds me of the cellular industry. MVNOs come and go pretty fast. The Top 4 guys are battling it out in a bloody price war.

Only in VoIP, it is a struggle to find ways to bring value. Cellular is stealing the small business market. Most other small businesses that I speak to just want to replace POTS or PRI. The PBX industry is do a slow fade at about 3-5% per year but that isn’t the erosion everyone predicted. Cloud Communications just isn’t selling like warm donuts at Krispy Kreme.

More consolidation is needed. And not mergers like VTech and snom. We need stronger VoIP companies to emerge – with a brand to build some demand and be able to execute on it.

Congrats! to VoIP Logic. The CEO, Micah Singer, was on a number of my ITEXPO panels over the years.

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    October 31, 2016 , On Rad's Radar

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