Digium To Boost Cloud Services Play With VocalCloud Acquisition


Digium has acquired hosted VoIP provider VocalCloud in a deal the Huntsville, Ala.-based company said will bolster its own portfolio of cloud-based Unified Communications (UC) products and services.

Terms of the deal, which closed Aug. 30, are not being disclosed, Digium said.

VocalCloud, based in Atlanta, first partnered with Digium to develop Switchvox Cloud, the hosted version of Digium's flagship phone and UC system introduced in March of this year. The platform was created to deliver the full suite of UC features available through the on-premise version of Switchvox, but through a services-based model, allowing users to pay on a month-to-month basis and tap into those features through a variety of end devices, including smartphones and tablets.

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Digium CEO Danny Windham said it was the initial success of the Switchvox Cloud platform that prompted the VocalCloud deal.

"The success of that product has been so encouraging," Windham told CRN, noting that 170 of Digium's roughly 1,400 North American channel partners are already selling Switchvox Cloud. "So it seemed very logical to bring them on board."

What's more, VocalCloud is also a supporter of Asterisk, the open source telephony platform created and sponsored by Digium, making the two companies a natural fit, Windham said.

Digium's growing footprint in the hosted UC space not only gives solution providers a broader portfolio to offer their customers, but affords them recurring revenue streams and a great services play, Windham said. Digium will continue to offer the on-premise version of Switchvox, as well, to accommodate those partners who "struggle" with the cash-flow challenges associated with the hosted model, he added.

Digium's new Cloud Services unit is poised to heat things up between Digium and other UC players like Cisco, ShoreTel and Avaya, which also offer hosted UC solutions.

PUBLISHED SEPT. 3, 2013