Metaswitch

The 2008 VoIP Fierce 15 arrives – Whew!

Doug Mohney — Wed, 05 Nov 2008 09:28:56 -0500

After numerous discussions, long nights slaving over a hot stove, walking five miles in the snow, yadda-yadda, we settled in on the last two Fierce 15 members late on Monday.

You can find the 2008 VoIP Fierce 15 here.

In a particularly volatile economic environment, one of our spoken fears was to have a Fierce 15 nominee show up on the list today and be bought out. Or worse yet, end up going bankrupt at the end of the week.

Last week ago, the former scenario took place.

Logitech swooped in and bought SightSpeed for $30 million. SightSpeed does SIP-based video solutions and would have been on the list for leveraging video conferencing above and beyond vanilla VoIP calls. True, the deal doesn't close until November, but it is exceedingly rare that deals don't close - in which case there's a bigger problem than anyone has let on.

Do we give Logitech a Fierce blue and orange ribbon for buying technology and a services company? Note that Logitech has joined the ranks of other companies moving out of one-off, simple hardware sales into the recurring revenues model, as well as the me-too (ugh, I hate it!) low-cost phone business? A decision for another day, me thinks.

The other we-can-argue-it case is the whole MetaSwitch vs DCL tail-wagging issue. DCL is a privately held company; MetaSwitch is the division generating 78 percent or so of the company's total revenues AND the biggest brand name in the VoIP and carrier space. At some point, DCL needs to swallow its corporate pride and re-brand the company as MetaSwitch, with DCL's legacy drivers business off to the side; easier sell to the Wall Street Journal and other business pages if you're <ahem> ultimately going that route.

- Doug

MetaSwitch, Top VoIP Company 2008: FierceVoIP, Fierce 15

Tue, 04 Nov 2008 14:31:30 -0500

MetaSwitch

Where it's based: Alameda, Calif.
When it was founded: 1998
Website: www.metaswitch.com

Why it's Fierce: MetaSwitch generates 78 percent, or $91 million of parent Data Connections Limited's (DCL) $118 million total revenues. The company has grown 22 percent since last year, picking up Tier 1 carrier deployments and continuing expansion of its customer base. Currently, MetaSwitch has more than 400 service provider customers, with the year's final quarter closing in August 31, 2008 being MetaSwitch's strongest ever.

If you want more numbers, MetaSwitch counts 125 CLEC customers and has supplied the core softswitch technology for 150 independent operating companies in North America. If you want product growth, MetaSwitch has added the MetaView Network Management System for network monitoring and added the CommPortal Assistant desktop application to the MetaSphere applications suite.

Perhaps the most impressive benchmark when many in the VoIP apps space are conducting reorganizations and layoffs - MetaSwitch is hiring.

MetaSwitch reports hot FY08 results

Doug Mohney — Tue, 28 Oct 2008 23:18:03 -0400

Data Connection Ltd (DCL) reported record revenues of $118 million for its fiscal year ending August 31, 2008, but the real story was that the MetaSwitch division brought in more than three-fourths of the haul.

"We're very, very pleased with the results over the past year," said MetaSwitch President John Lazar. "We try very hard to be very clear about what we're trying to achieve in terms of plan."

The MetaSwitch division of DCL brought in 78 percent of total revenue for a total of $92 million. Growth was up 22 percent over the same period last year and was attributed to both later Tier 1 carrier deployments and continued expansion of the customer base. MetaSwitch now counts over 400 service providers on its books, and the year's final quarter was the company's strongest ever.

Lazar noted that the headline numbers are strong and more importantly, the company is "very profitable." He said the company feels it has a big opportunity in today's economic climate and is in a good position relative to its competition. MetaSwitch is still on track for growth in the forthcoming fiscal year and anticipates continuing to hire "across the board" in sales, engineering, and marketing as revenues increase.

Other highlights from the FY08 report include taking a "significant" venture capital investment in January 2008, a deal with Embarq to provide MetaSwitch's softswitch, media gateway and MetaSphere applications suite to provide the core of its new Embarq Smart IP Enterprise solution. MetaSwitch now serves more than 125 CLECs with its technology.

Moving forward, next generation wireless opportunities look good. "The iPhone has changed the rules," said Lazar. "The Google phone looks very interesting." New enterprise applications taking advantage of SIP phones with XML capabilities are also something that could appear in the future, particularly in the higher education space.

For more:
- MetaSwitch announces FY08 numbers. Release

FierceVoIP Leaders: John Lazar, President & COO, MetaSwitch

Pete Wylie — Wed, 01 Oct 2008 16:11:04 -0400

FierceVoIP: Let's talk a little about MetaSwitch's recent deal with Embarq.

John Lazar: We think the Embarq project is very interesting for two big reasons. Number 1, it is an obvious validation of our strategy to extend our reach. Embarq has more than 700 customers from Tier 1 ones down the chain. Secondly, Embarq allows us to offer cutting edge services, because they understand that subscribers are accessing content through many platforms and devices. Together, we offer broad and coherent access across devices. Embarq's web-based features for end-users are also quite attractive, and its web portal is also very good.

FierceVoIP: Does MetaSwitch have any acquisition plans in the near future, either buying another company in the space or perhaps merging with another one?

Lazar: No, we have no plans of that sort at the time. It's not part of our growth strategy at this time. Of course, we never say never, and if the right company came along that we thought would really add value, we might consider something. But what I want to stress, is that we are growing strongly, we have a great revenue stream, and we're not looking to become part of a larger company right now.

FierceVoIP: Are there any plans for MetaSwitch to expand into other markets?

Lazar: We are focused on our already substantial Tier 1 offerings and making sure they are the best they can be. But we are also looking at gradual expansion upwards and outwards to new markets. We have the beginnings of an operation in the Caribbean and Latin America, and we're excited about the possibility of substantial revenue uptick in this region in the next few years. We are also looking at conscious expansion into Asia and mainland Europe, but not immediately on either.

FierceVoIP: Can we expect any significant new product or service rollouts from MetaSwitch soon?

Lazar: We have a fantastic range of revenue-driving applications we can offer clients right now, and we will continue to add meaningful ones to that package. We have a range of developing products; we're looking at set-top boxes and next-generation mobile devices, and we think there are some really interesting revenue opportunities in mobile and TV.

FierceVoIP: What does the next year to two years hold for Metaswitch?

Lazar: Well, we see some very interesting vertical opportunities in enterprise, opportunities to refine our offerings and provide new applications and services. Also, we are in the process of working with universities for deployments there. I can't comment on any specifics yet, but definitely watch that space.

In a broader sense, we're proud of what we've achieved here. We've gone from zero customers to 300 customers in eight years, we're close to $100 million in annual revenue. We've seen some competitors in the space go by the wayside. The reception we continue to receive from our customers is fantastic. They note, as key values of our products, the reliability, service and customer support, quality engineering and innovation.

FierceVoIP: Do you think the current shaky economic conditions will negatively affect any of MetaSwitch's plans or revenue streams?

Lazar: Even with the current economic climate, we've seen no slow down yet and are hoping that will continue. I think the next two to three years will be very exciting and quite unpredictable. To survive, I think we'll have to innovate very fast in a rapidly changing environment. As always, we're excited for the challenge.

A visit with MetaSwitch

Doug Mohney — Tue, 30 Sep 2008 12:34:52 -0400

During a recent trip to the West Coast that included visits to Streaming Media West and AstriCon, FierceVoIP Editor Doug Mohney stopped by MetaSwitch's offices in Alameda, Calif., for a chat.

"MetaSwitch is not a niche product company," said Andy Randall, vice president of marketing. "We have a broad set of solutions now. In a survey of our customers, they see us as central to where their business is going. They rely on us, trust us, these are relationships that go beyond buying a piece of equipment. We have a broad solution emphasis across a range of different products."

"The other key thing I'd like to emphasize is quality and reliability. We want our customers to say ‘I can sleep at night. MetaSwitch just works.'"

As of March 2008, MetaSwitch had 240 publicly listed carrier customers, with the total number of customers approaching 400. The company has its products installed at carriers in all 50 states, plus all U.S. territories.

Infonetics puts MetaSwitch at number two in market share in North America, between Nortel (1) and Siemens (3). But it's a market that has plenty of growth left, Randall said, as carriers move to replace their legacy hardware - such as Ericsson and Siemens - with softswitches.

With economic conditions tightening up, the era of just shipping equipment, "is gone," said Randall. Customers must see an immediate impact of purchases upon their businesses, so they are buying to see a tangible reduction in operational expenses (OPEX) and/or to get value-added services through new applications.

MetaSwitch is investing its energies in new applications around the MetaSphere applications suite. "The key benefit of MetaSphere is it can deliver features to legacy systems," Randall stated. "It's important to talk to Tier 1s. Even if they are starting to do switch migration, most subscribers will be on legacy switches for a long time... the market is still thinking about VoIP or IMS or session control, but a lot of [new applications] can take place on top of legacy switches."

In 2009, MetaSphere applications will likely appear on more devices, including TVs and mobile phones; a fixed-mobile convergence solution may also debut.

MetaSwitch lands EMBARQ

Doug Mohney — Wed, 20 Aug 2008 10:09:06 -0400

MetaSwitch has announced that its softswitch and MetaSphere application suite forms the core of EMBARQ's Smart IP Enterprise solution. The integrated solution is hosted in the core of EMBARQ's network.

"This is another data point, abetted with a nice name, of what we've been doing for some time and continue to do," said MetaSwitch CEO Graeme MacArthur. "We're becoming more and more of a trusted vendor in the industry and that, in a nut shell, is what it is all about."

In addition to EMBARQ, MetaSwitch counts AT&T, BT, Qwest and Sprint among its Tier 1 customers.

EMBARQ's Smart IP Enterprise service will provide business customers with a bundled package of dedicated internet access, local and long distance voice services and IP-enabled call features. MetaSphere enables click-to-dial with Microsoft Outlook integration and advanced voicemail features. MetaSwitch is also providing IP-enabled features, including rules-based call forwarding, auto attendant, music on hold, sequential ring and remote click-to-dial.

While vendors may be scaling back their purchases due to slowing economic conditions, MacArthur doesn't seem to be fazed by the current business climate. "We're comfortable with our growth and sales situation," he said. "The industry in general is more cautious in how they spend their money. It can actually be a good thing, they look for value, quality, longevity... there's more scrutiny, they'll spend with who they trust."

For more:
- MetaSwitch EMBARQ announcement

Related articles
MetaSwitch Makes Mashups

MetaSwitch makes mashups

Thu, 24 Apr 2008 06:59:56 -0400

MetaSwitch has announced it is demonstrating mashups using its CommPortal subscriber interface with iGoogle and Salesforce.com, providing click-to-dial experiences with both websites. The solutions will enable service providers to integrate CommPortal directly into both websites, allowing users to access click-to-dial, contact integration, visual voicemail and other features.

Demonstrations are taking place this week during MetaSwitch's annual user forum event and put the company into a crowd of softswitch-based vendors that have announced mashup solutions, including BroadSoft and Sylantro. Other companies with mashup capabilities include Digium's SwitchVox SMB IP PBX and NewStep's CSN converged communications platform. Typical objectives around mashups are to enable service providers to quickly develop new applications at reduced cost while adding more revenue-producing services.

The iGoogle/CommPortal mashup includes an iGoogle gadget to enable click-to-dial and a remote click-to-dial option that allows subscribers to utilize the function on their mobile phones. Users can also integrate their Gmail contracts with the CommPortal interface for some contact management functionality. Salesforce.com gets a click-to-dial function with CommPortal and users get access to a contact-based view of their call history along with access to a visual voicemail application; frankly everyone is doing a Salesforce.com mashup.

For more:
- MetaSwitch Mashup release

Related articles:
BroadSoft and JoeDeveloper.NET Mashup Facebook
Converging out of CTIA

MetaSwitch Makes Mashups

Doug Mohney — Tue, 22 Apr 2008 22:11:32 -0400

For more:
- MetaSwitch Mashup Release

Related Articles:
BroadSoft and JoeDeveloper.NET Mashup Facebook
Converging out of CTIA