As we reach the end of 2017 there is more consolidation and changes in the telecommunications and unified communications market with indications that it will continue.
Cisco announces Agreement to acquire BroadSoft
Cisco and BroadSoft announced a definitive agreement for Cisco to acquire BroadSoft.
The acquisition has been approved by the board of directors of each company who believe Cisco and BroadSoft will deliver a robust suite of collaboration capabilities across every market segment. They also believe their combined offers, from Cisco’s collaboration technology for enterprises to BroadSoft’s suite for small and medium businesses delivered through Service Providers will give customers more choice and flexibility.
As businesses continue to move toward the cloud in search of simplicity and speed, they hope to deliver best in class collaboration tools and services. BroadSoft’s hosted offerings, aimed at small and medium businesses are complementary to Cisco’s on-premises and enterprise HCS offerings.
The announcement stressed that both product suites are delivered to the market through local Service Providers, mainly telcos. However it will be interesting to see if this adds capability to Cisco’s Spark vendor cloud platform.
Of Gartner’s Magic Quadrant UCaaS, Worldwide 2017 nearly half are telecommunications service providers offering Cisco HCS or Broadsoft. Here in New Zealand this is the same as Spark Digital’s Ready Cloud Collaboration (HCS) or Vodafone One Business (Broadsoft).
As highlighted last month, it will be interesting to see how this influences Cisco’s presence in the New Zealand unified communications and collaboration market alongside their ability now to promote Cisco Spark.
Sonus merges with GENBAND to become Ribbon Communications
Sonus and GENBAND completed their merger following which each became a wholly owned subsidiary of newly created parent company Ribbon Communications.
This should not really impact the use of Sonus products here in New Zealand as Sonus Networks is a global leader in cloud and real-time communications security, and GENBAND is a leading provider of carrier and enterprise network real-time communications solutions, not widely used here.
The two companies plan to create a leader in next-generation communications networking, with increased scale and market reach across products, customers and geographies. The combined company is expected to realise annual cost synergies of $40 million to $50 million in 2018 and to drive solid cash flow from operations in the first year.
This merger looks more aligned to corporate financial synergies rather than technology.
Vocus Group plans to sell its New Zealand assets
Vocus Group plans to sell its New Zealand assets, which include the Orcon and CallPlus retail businesses, by the end of June next year. Vocus New Zealand, the country’s fourth largest telecommunications company, has 192,000 broadband customers (it owns the Slingshot, Orcon, CallPlus brands as well as what was FX Networks brands), supplies electricity to about 9000 homes and businesses, and resells mobile services to 21,000 people.
Telecommunications Users Association chief executive Craig Young said it would be concerned if either Spark or Vodafone were allowed to buy Vocus’ New Zealand retail businesses.
“As the third-largest fixed-line competitor in New Zealand it’s important to our market that [Vocus] remains strong, competitive and independent from at least the two big players in the market,” he said.