Unified Communications Featured Article

BroadSoft Talks UC with TMC

August 27, 2015

BroadSoft was an early innovator on the unified communications front, making it easy for businesses to buy and consume its offerings by bundling everything together rather than selling features in a one-off fashion. But the UC space has changed considerably since the company first came onto the scene. So we thought now would be a good time to check in with BroadSoft for an update on the company and where it sees the industry as a whole going. Here’s an excerpt of our interview with Mike Wilkinson, vice president of market offers at BroadSoft.

For those not familiar with BroadSoft, tell us about the company.

Wilkinson: BroadSoft is the leading global provider of unified communications software and cloud services. Our core communications platform enables the delivery of a range of enterprise and consumer calling, messaging, and collaboration communication services, including private branch exchanges, video calling, text messaging, and converged mobile and fixed-line services. Our portfolio of services extends beyond UC services as well, to contact centers and technologies such as SIP trunking and WebRTC.

Who are your customers?

Wilkinson: Our customers are mobile, fixed-line and cable service providers across the globe. BroadSoft generates over $3.5 billion in enterprise revenue per year for its customers, has more than 10 million hosted UC lines deployed globally, and over 75 IMS and mobile deployments. BroadSoft has 700 service provider customers, including 26 of the top 30 based on revenue across 82 countries.

How has your go to market changed in recent years?

Wilkinson: We introduced the BroadCloud managed service that can fast track the deployment of cloud services to less than three months for even a large service provider. Customers like BT and Verizon are both using BroadCloud in the U.K. and U.S. markets,  respectively. Secondly we are aggressively building out a dedicated team of customer acceleration professionals who assist customers sell in the field.  

How is BroadSoft addressing the over-the-top application trend?

Wilkinson: While many of these new applications and devices have value on their own, barraging employees with an avalanche of voice, video, messaging, and collaboration applications has a cumulative negative impact on employee productivity. BroadSoft’s technology focus has been on providing a single end-user experience that can seamlessly unify applications, services, and devices.

BroadSoft acquired mPortal in June. Why?

Wilkinson: mPortal (which was renamed BroadSoft Design following the closing of the transaction) has custom design and development capabilities, and focuses on delivering mobile-centric user experiences—significantly enhancing BroadSoft’s ability to enable its global telecommunications service provider customers to deliver customizable UC experiences to a wide range of business end users across different market segments.

BroadSoft on Aug. 3 reported a second-quarter loss of $8.1 million, after reporting a profit in the same period a year earlier. What happened?

Wilkinson: BroadSoft continues to make significant progress against 2015 strategic and financial objectives. The company measures profitability on a non-GAAP basis, which excludes the impact of certain non-cash expenses. On that basis, BroadSoft reported net income of nearly $10 million dollars in the second quarter, up from $9 million in the year-ago period. On a revenue basis, BroadSoft reported sales in the second quarter of $64 million, up from $54 million a year ago.

In the first half of 2015, BroadSoft also took important steps to increase our lead in the housed unified communications marketplace. At the end of June, BroadCloud had over 200,000 total subscribers. Of those, there were 160,000 wholesale subscribers, up from 130,000 in the fourth quarter of 2014. In addition, BroadSoft now has over 45,000 retail subscribers through PlacetelBroadSoft’s cloud service offering in Germany. Placetel is sold through finocom AG, the German cloud-based UC provider that was acquired by BroadSoft in 2013. 

Edited by Dominick Sorrentino