The UC&C Vendor LandscapeAnnual Summit Review of the

Strengths & Cautionsfor Industry Leaders

Blair Pleasant, President & Principal Analyst, COMMfusionDave Michels, Principal Analyst, Buffalo Communications.

Landscape Highlights

• The UC product market is mostly mature– IP telephony, presence, phones, and mobile

– Solution life increasing

– PBX is back – Too many vendors; market consolidation continues

• Shift to the cloud continues– Enterprises moving to UCaaS

– Contact centers as a service

New and Hot 2017• CPaaS: Twilio IPO was a game changer. Cisco, ShoreTel,

Vonage, and more…. • Workstream Messaging: The new IM• Video: First year where both Cisco and Microsoft will lead

with integrated room systems. Vidyo, Logitech, Polycom, Pexip, Starleaf…

• Contact Center as a service reaching larger markets• Cloud first. Cisco, Microsoft and most UC vendors now• SDN WAN: Sometimes MPLS and OTT isn’t enough

Summit Hat Tips• Polycom• Logitech• Revolabs• Starleaf• Enghouse• Inteliquent• Masergy• Plantronics• vSpatial

• Vidyo• Kandy• AVST• ATT• Tata• AudioCodes• Nectar• Nyansa

The Landscape

• 8x8

• Alcatel-Lucent Enterprise

• Avaya

• BroadSoft

• Cisco

• Fuze

• Microsoft

• Mitel

• NEC

• RingCentral

• ShoreTel

• Unify

• Vonage Business

8x8Strengths• Robust offering, UCaaS Leadership• Accelerated midmarket & ent adoption• Integrations to Google Apps & O365• Integrated video• Full contact center offering – ECaaS• Security and compliance (HIPPA)• Int’l expansion in Europe & Asia –

added 3 data centers• 26th consecutive quarter of profitability

Cautions• Limited messaging solution • Hybrid is challenging• Contact center still not properly

integrated in with VO• Flash based collaborative client• Large scale deployments are yet

to be proven• Enough resources to support

growth & customer base?• No workstream msg solution - yet

Alcatel-Lucent EnterpriseStrengths

• Building Momentum after year of establishing independence

• Strong Telephony share Europe

• Solid UC product capabilities

• Strong focus on hospitality –creative tech and financing.

• Global

Cautions

• Effects of Chinese ownership

• Weak distribution presence in NA

• Behind in Cloud – though OT is prem, cloud, and hybrid ready.

• Rainbow delayed – coming soon. Includes workstream messaging

AvayaStrengths

• Contact Center Leadership – new: Oceana • Huge installed base • Strong midmarket solution – IP Office• Focus on Embedded comms • Developer enablement - new Breeze SDK,

Zang CPaaS– Zang Spaces – workstream messaging

• New team engagement portfolio & unified client - Equinox

• Global product and service coverage• Network offering – strong growth in fabric

Cautions• Losing market share, esp. in enterprise• Huge debt load – exploring asset sale -

no suitor in sight• Uncertain future limiting sales• Behind on cloud - confusing story• Midmarket IP Office cloud hosted by

partners - ScanSource, Carousel

• New channel program – may be good or bad

BroadSoftStrengths

• Huge global UCaaS Market Share

• Penetration outside English speaking countries

• Announcing TeamOne, CCOne, and expanding Project Tempo

• Powers Verizon OneTalk

Cautions

• Shifting to wholesale model with BroadCloud

• Many partners struggle with differentiation

• Launching “Powered by BroadSoft” branding

• Software-only

• Tends to lag on innvoation

CiscoStrengths• #1 in current year IP Telephony

revenues• Spark to glue together UC,

WebEx, Telepresence• Broadest voice & video endpoint

portfolio in industry• Voice/Video/Web conferencing

leadership • Spark Encryption model• Spark OS

Cautions

• Spark is not done

• UCC is one small part of the company

• New management may de-emphasize this lower-growth Cisco unit

• Premium pricing for most endpoints

FuzeStrengths• Track record with enterprise

• Business process integration

• Video-centric collab experience

• Rich technology platform -WebRTC, APIs

• Mature Channel Strategy

• Int'l expansion

• Funding – more development $

Cautions

• Branding – low profile, light marketing

• Small Company (<500 EE)

• Slow Adoption of Web and Video Conferencing

• Not appropriate for <200 users

• 3rd party contact center

MicrosoftStrengths• Leverages Office “anchor”• Vision is back with Satya • Both Skypes enable

intercompany federation• Very Global - major share in

127 geo-markets• Ecosystem strength - phones,

headsets, etc.• Global Conferencing service

Cautions• Third-party contact centers -- a

lot of them

• Co-opetition with resellers and providers

• Fragmented video solution with native SfB and Polycom solutions

• Strong cloud focus, but limited features on SfB Online

• Good enough SLA

MitelStrengths• Playing every angle: premises, cloud,

hybrid; wholesale, retail, supplier; managed

• Merger-driven growth: Revenue, Int’l., platforms

• Parity across premises, cloud, hybrid• Vertical offerings – APIs, partners• Adjacency expansion – Mavinir for

mobile – VoLTE• New: World Cloud – same UC features

anywhere

Cautions• Too many options &

platforms• Becoming the “consolidator”

- more acquisitions• Product roadmap

consolidation continues –uses up resources

• 3rd party for SMB cloud contact center - LiveOps

NECStrengths

• Global

• $40B revenue company

• Strong in verticals

• Broad IT portfolio (SDN, Biometrics, Servers)

• UNIVERGE BLUE building momentum

Cautions

• Weak Marketing and Analyst Outreach

• Consolidating Portfolio with 3C and SV

• Technology Lags Market

• No Workstream Messaging

RingCentralStrengths• Comprehensive - voice, UC, video,

WCC (Glip), conferencing

• RingCentral Connect - platform for integrations & workflows

• Strong marketing, good market mindshare for OTT vendor

• Self provisioning & management

• Cloud Connect – dedicated connection to RC cloud

Cautions• Third-party contact center offering • RC Meetings is separate app• Move upstream may provide

challenges • No large customers – largest is 5k• Limited language support globally –

only French & Spanish• Direct hybrid solution is difficult –

no consistent experience across onprem & cloud

ShoreTelStrengths• Established SMB/Mid market

simple premises play• Next generation common

platform released• Consistent growth and

profitability• Arguably the newest UC

platform in the industry• New CPaaS Play (Summit)

Cautions

• Unproven new product

• Sky Status and Migration unclear

• North American focus

• No workstream messaging solution

• For sale?

UnifyStrengths• Huge installed base, esp. in Europe

• Solid, flexible technology base

• First UC vendor w/ WCC (Circuit)

• Vertical expertise

• 3rd-party integrations (Fusion)

• Broader portfolio of solutions & market access via Atos

• Added Circuit Freemium model

Cautions

• North American GTM

• Significant staff reductions

• Having difficulty selling Circuit

• Continuing senior management changes

• Uses 3rd party for cloud CC

VonageStrengths• Strong marketing and brand

awareness

• Strong leadership

• 3 UCaaS Services

• Nexmo CPaaS

• Integrated MPLS and SDN WAN

• Strong OSS/BSS with (Zeus)

• Financial strength from consumer success

Cautions

• Lots of acquisitions – still internal fragmentation– SDN WAN on 1 Service

– Nexmo integrating with Vonage

• Three Contact Centers

• Predominately Voice-oriented and OTT

QUESTIONS???

The UC&C Vendor LandscapeAnnual Summit Review of the

Strengths & Cautionsfor Industry Leaders

Blair Pleasant, President, CommFusionDave Michels, Principal Analyst, Buffalo Communications

Thank you!