Tier 1

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.

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.

VOSS gets $12M in Series B funds

Pete Wylie — Mon, 22 Sep 2008 10:17:08 -0400

VisionOSS Communications (VOSS) announced a $12 million infusion of Series B private equity funding Monday, as the company looks to move beyond early adopters and into the rapidly growing UC market. Eden Ventures, XAnge Private Equity and Pyrford Enterprises combined on the Series B funding. Pyrford led VOSS's Series A funding as well.

VOSS, based in Berkshire, U.K, plans to use the capital to add enterprise and service-provider UC features, such as video telephony, messaging, conferencing and presence, to its current offering. VOSS technology is presently used by tier 1 carriers and enterprises, such as BT and IBM, according to a company release.

"Our goals are to provide the world's leading UC service delivery platform, and to make it virtually as easy, quick and efficient for customers to launch new UC services as it is to launch a video on YouTube," said VOSS CEO Mike Frayne. "We've seen our early adopter customers fully capitalize on the platform's benefits, especially our support for hybrid, multi-vendor architectures, and we know we're well positioned to lead in the broader market uptake of Unified Communications."

VOSS also reports that Eden Ventures' Mark Farmer and XAnge's Cyril Bertrand will join its board of directors.

For more:
- see the VOSS press release here

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Acme Packet new Net-Net product offering

Pete Wylie — Tue, 16 Sep 2008 09:19:17 -0400

Acme Packet announced today the release of the Net-Net 4500, an intermediate SBC offering that will sit between its existing Net-Net 4250 and 9000 products. In most configurations, the Net-Net 4500 has more than 100 percent more capacity for calls per second, media streaming and IPsec tunnel capacity than the 4000 series.

The improved performance ability of the Net-Net 4500 will benefit service providers facing ever-increasing demands on their networks as subscriber bases increase and the total number of data streams balloons.

In addition to cutting costs due to its increased performance ability and processing power, the Net-Net 4500 is more energy efficient as its redesigned power supply system uses far less energy than the 4000 series, according to Jonathan Zarkower, director of product marketing for Acme Packet.

"The Net-Net 4500 has undergone significant field testing, where it produced valid performance numbers, and we have completed its beta deployment," Zarkower said.

Zarkower said some of the Tier 1 customers Acme Packet already serves have seen increased performance and subscriber satisfaction after implementing the Net-Net 4500. He also mentioned the potential benefits of using the Net-Net 4500 to support public service security gateways and WiFi.

Acme Packet initially planned to include a prominent customer who beta tested the product in the Net-Net 4500's release materials, but decided to launch without. Zarkower declined to comment on the lead users of Net-Net 4500.

Given Acme Packet's present market share of over 50 percent of the SBC space and long list of customers, expect implementation of the Net-Net 4500 to be wide-spread as VoIP continues to replace TDM communications within enterprise space.

For more:
- see the Net-Net 4500 release here

FierceVoIP Leaders: Andy Ory, President, CEO, and Co-founder, Acme Packet

Pete Wylie — Mon, 25 Aug 2008 16:40:47 -0400

FierceVoIP: Acme Packet recently released its second quarter financials, and you were quoted as saying they were disappointing, but that you weren't overly concerned with revenue not meeting initial projections. Are you still optimistic about Acme Packet's growth?

Ory: Absolutely, we believe we have the best product, coupled with the thought leadership, experience and security to provide the best service possible for our clients.

We had some sales get pushed back into the third quarter, which contributed to the adjusted revenue projection. And overall, just the way we primarily go after Tier 1 companies, their adaptation rates are a little slower, but the purchases are usually much bigger, which can lead the market to be rather lumpy.

FierceVoIP: Company literature states that Acme Packet works with 29 of the top 30 Tier 1 companies. Do you see any competitor's entering into that space in the near future?

Ory: I just don't see another company matching the product first of all. I sincerely believe Acme Packet has the best session border control product on the market; in addition, I think we have by far the highest penetration and a great relationship with our customer base. We offer more connection with more markets than any of our competitors, and that really goes back to our inception eight years ago.

FierceVoIP: How so?

Ory: Well, while other players in our market were going after the smaller carriers, the more entrepreneurial ones, we were focusing on the Tier 1 companies. And over time it became apparent that the larger carriers had the customer base and the infrastructure that required a lot of session border control servers.

FierceVoIP: What level of adoption of the Net-Net 9000 client have you seen so far?

Ory: We are definitely seeing the Top 10 beginning to purchase it more. The 4000 model is still the workhorse and it gets deployed more often, but some of the bigger companies are really seeing the advantage of the 9000 because the larger telcos are used to big iron and gateway, and it has really useful features, like in-box redundancy and better signaling and media capacity. The 9000 is certainly better-suited for anyone with DSP requirements.

FierceVoIP: Recently, you said Acme Packet does about 40 percent of its business in the U.S. and 60 percent internationally, do you see those percentages staying pretty much the same going forward, or do you see a shift toward either market?

Ory: Well, I'd say it's closer to a 50-50 split between the two now. When big deals go through it can skew the numbers one way or another, but I say its pretty close to half-domestic, half-international. APAC and CALA are doing well, as the cost of doing business in these regions trends down, the value proposition, in places like Mexico and Brazil, is really expanding.

FierceVoIP: Where do you see the VoIP industry going in the next 5 to 10 years?

Ory: I think in 10 years, maybe even 5 years, the bulk, if not all, of our communications are going to be IP. Whether you're in your home, car or office, it's all going to be digitized and sent by packet over IP. The problem then enters in, "How can I trust this line?"

For example, if I wanted to make a call to a bank to make a big transaction for my business, I'm not going to use Skype, it's just not secure enough for that type of call. So customers really have to form trust and find quality in the type of IP they use for each type of communication. I think what you will have is companies and carriers building out closed, privately managed signal networks, and there is going to be a lot of need for session border control in that environment. So in short, I think we see a Layer 5 session-oriented build out in the next five years.

FierceVoIP: There is quite an opportunity there, any specific areas you see as first adopters?

Ory: I think the enterprise and call center markets are really ripe for growth. They want to move to IP to lower cost and improve disaster recovery. I think they will turn to trusted carriers for the reliability and security, back to the trust issue, and we will be primed to offer the session border control so these communications can be both cost-effective and secure.

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

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