Apparently Broadsoft ended 2006 with a strong y-o-y growth rate. The company continues to expand its business internationally with an increasing amount of its revenue coming from outside the US. Europe, in particular is experiencing strong growth with a number of new customer wins focused on IMS, including KPN and Telenor. During the first two quarters of 2007, there has also been an increased level of interest in mobile and FMC.
While BroadSoft has been successful in penetrating competitive carriers and ISPs, the focus is still the fixed-line and mobile incumbents. The total number of IMS wins has approached 30 now, and lots of them are through Ericsson, which is proving to be the biggest channel of IMS deployments for Broadsoft. The majority of the IMS wins have come from outside the US. The scale of deployments within IMS contracts is still modest however the potential is there.
Competition: Sylantro is still strong in the US with some activity in Asia. Sylantro is still number 1 competitor for Broadsoft in the US. Nokia-Siemens is coming up and especially strong in cable hosted telephony segment. According to Broadsoft, it is winning some business from Comverse. The company sees little competition from Nortel.
For Broadsoft, business centrex is still its core application, while residential VoIP continues to be a steady business. However the company has seen a major ramp up in business trunking deployments. Disaggregated Class 4 feature application servers are a major threat to the VoIP equipment vendors like Sonus and Veraz. Companies deploying disaggregated business trunking (Class4 features) server include XO, McLeod, and Verizon Business.
Other solutions that Broadsoft is pushing include its call center solution. The company has enhanced its capabilities in this area through the addition of call recording, reporting, and supervisor/agent clients. The solution is obviously pitched as a Hosted Contact Center solution with deployments at several service providers.
2Q07 in particular has been good for Broadsoft. I will be back with a qualitative 2Q07 update on Broadsoft in a couple of weeks.