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ShoreTel Rolling Up Its Sleeves As CEO Prepares To Exit

By Chad Berndtson
July 22, 2010    9:36 AM ET

Page 2 of 2

Along with the new products, Gavin said, is a stepped-up campaign to bring disillusioned former Nortel partners into ShoreTel's fold. Many of them, he noted, will be ShoreTel's most helpful evangelists.

"The Nortel channel being jump ball, we've acquired a significant number of Nortel channel partners," he explained. "But it's on the advertising side too: we need to talk more about this and work this message a little harder out there."

ShoreTel is not afraid to attack rival Avaya's partner base either. Gavin declined to name names, but suggested that some of Avaya's larger national U.S. partners are giving ShoreTel a harder look than before.

"We're going after some of the bigger ones: they see the benefits and are intrigued, but of course they're a little more reluctant, and have more to worry about from the Avaya side," he said. "We're not saying you have to go exclusive. We're willing to let the customer decide and you can decide on a case by case basis which one is better. We're sticking to our story."

Earlier this year, Combs told CRN that market turmoil created by big moves like Avaya-Nortel acts in ShoreTel's favor and that the midmarket represents a huge opportunity for ShoreTel and its channel.

"We have a product that is brilliantly simple: customers love it, partners can make money by selling it, and we have world class customers satisfaction rates," Combs said at the time. "So my main issue is simple: I'm not in enough opportunities. That's where our distribution partners will help us most."

All the while, ShoreTel's modest gains continue. Last week, ShoreTel adjusted its guidance for its fiscal fourth quarter, saying it now expects to report revenues between $41 and $42 million -- up from its previously projected $35 to $38 million -- for the quarter ended June 30.

"We are very pleased to see over 10 percent sequential revenue growth in the fourth quarter, driving our quarterly revenues to our highest level ever and above our previously announced guidance," Combs said in a statement.



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