Metaswitch Gives Big Lift to Mobility Strategy with Colibria Acquisition

| Apr 7, 2011 | IP Services Infrastructure
| Analyst: Joe McGarvey

Event Summary

April 6, 2010 -- Metaswitch Networks announced the acquisition of Colibria, a provider of enhanced instant messaging, presence, and network address book solutions. The acquisition, the value of which was not disclosed, is intended to further Metaswitch’s strategy of increasing its reach into the mobile market and to provide a complement to its recently announced Thrutu service, which provides operators with software for allowing subscribers to exchange content during a phone call.

Quick Take

Analytical Summary

• Current Perspective: Very positive on Metaswitch Networks’ acquisition of Colibria; despite the details of the transaction being undisclosed, it is safe to assume the acquisition will turn out to be a bargain for Metaswitch, which acquires well-regarded software that has the potential to explode in popularity as the mobile network continues to evolve into a broadband communications channel and pipe to the Internet for billions of subscribers. In addition, the Colibria portfolio provides a compelling complement to Metaswitch’s recently launched Thrutu service, which in turn adds significant flesh to the bones of the company’s mobility strategy.

• Vendor Importance: High to Metaswitch, which put a mobility stake in the ground with the 2011 launch of Thrutu but required additional support and assets to build out a strong foundation for its ambitious strategy of expanding and enhancing the portfolio it offers mobile operators. The Colibria acquisition provides the company with strategically valuable products, such as instant messaging software, presence servers, Network Address Book, and Social Networking Gateway, as well as the accompanying protocol expertise that will significantly advance its mobility strategy.

• Market Impact: Moderate on the overall IP services infrastructure market, as Colibria’s product portfolio pushes Metaswitch into new competitive territory. In addition to IBM and Microsoft, which are major suppliers of presence servers and instant messaging technology, Metaswitch will be competing at the application layer with legacy network equipment makers such as Alcatel-Lucent, Ericsson, Huawei, Nokia Siemens Networks (NSN), and ZTE, all of which have plans to deliver Rich Communications Suite (RCS) services, which are based on many of the components in Colibria’s portfolio. To complicate the competitive landscape, Colibria is a partner with some of these RCS suppliers, such as NSN.

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