|
West Corporation Expands Unified Communications Suite with Smoothstone Acquisition
| Jun 7, 2011 | Voice and Unified Communications Services
| Analyst: Cindy Whelan
Event Summary
June 6, 2011 – West Corporation has completed its acquisition of Smoothstone, adding the provider of cloud-based VoIP services to its portfolio of communications solutions, which also includes InterCall conferencing and collaboration and Intrado public safety services.
Quick Take
Analytical Summary
• Current Perspective: Moderate on Smoothstone’s acquisition by IT services provider West Corporation for approximately $120 million, because the move is the latest in a series of acquisitions that West has made to beef up its unified communications product set. The company is rounding out its portfolio with cloud-based VoIP/UCC services, a managed security offer, and MPLS connectivity spanning the U.S. and Europe. The VoIP/UCC space is becoming crowded with players contending for a piece of the enterprise marketplace; West’s purchase of Smoothstone puts it on stronger footing against competitors in the global UCC market such as AT&T, BT and Verizon. The move may also provide Smoothstone with additional resources to compete more effectively for business against mid-market competitors in the U.S. including cable operators and competitive local exchange carriers (CLECs).
• Vendor Importance: High to Smoothstone, because the move unites Smoothstone with West’s InterCall conferencing and collaboration division, creating a combined entity that can provide a full suite of calling and conferencing solutions in the U.S. and internationally. West Corporation is a billion-dollar global organization with the financial resources to support Smoothstone’s growth. However, West has been built by acquisition and the company has closed six acquisitions since June 2010. Integrating these companies may dilute West’s focus on Smoothstone. Depending upon how the company as a whole will be structured, the acquisition could impede Smoothstone’s ability to execute on the product and geographic expansion initiatives that it undertook in late 2010.
• Market Impact: Moderate on the UCC market, because Smoothstone is now backed by a billion-dollar parent company that has the financial resources to expand the company’s services and reach, potentially accelerating Smoothstone’s 2010 initiatives. In the global market, the move will help West compete against providers such as AT&T, BT Global Services and Verizon by adding cloud-based UCC solutions to the company’s IT and consulting services. At the mid-market, the move strengthens Smoothstone’s position against competitors such as the business services arms of cable operators Comcast, Cox and Time Warner Cable, as well as competitive carriers MegaPath and XO Communications. However, it is not clear how Smoothstone will be managed going forward, and if West will change the company’s plans to fit other strategic goals.
CLIENTS ONLY
Current Perspective
| Client access - Full report in Voice and Unified Communications Services | More information
Top
Top
|
 |
|
Current Analysis Offices
Washington, D.C. +1 703 404 9200, Toll free 877 787 8947
Paris, France +33 (0) 1 41 14 83 15
© 2012 Current Analysis Inc. All rights reserved. | Privacy Policy
|
|
West Corporation Completes Acquisition of Smoothstone IP Communications
Creates Leader in Hosted Unified Communications for the Enterprise
OMAHA, Neb.--(BUSINESS WIRE)--West Corporation, a leading provider of technology-driven, voice and data solutions, today announced the completion of its acquisition of Smoothstone IP Communications, adding to its market-leading unified communications portfolio. Smoothstone is now part of InterCall in West’s Unified Communications operating segment.
“The acquisition of Smoothstone positions us as the leader in the enterprise unified communications marketplace”
Smoothstone is a leading provider of cloud-based communications for the enterprise. They deliver highly flexible and scalable solutions for clients’ next-generation IP telephony needs. Infonetics, the international market research and consulting firm, recently ranked Smoothstone among the leaders in its third annual North America Business Voice over IP (VOIP) Services Leadership Scorecard. Smoothstone enjoys a unique position among the companies ranked in the study as the only industry player focused on the enterprise market. The report noted that Smoothstone’s continued growth has been fueled “due to a strong focus on execution and its success in driving new customers onto its hosted VOIP platform, resulting in the second largest installed base of seats in 2010.”
“We are excited to be joining West and believe that together we can accelerate Smoothstone’s growth,” said Jeff Wellemeyer, co-founder and president of Smoothstone. “The combined companies have unprecedented experience in deploying unified communications solutions from mid-market companies to the largest enterprises. Both also have deep expertise in the deployment of both Cisco and Microsoft environments.”
“The acquisition of Smoothstone positions us as the leader in the enterprise unified communications marketplace,” said Todd Strubbe, president of West’s Unified Communications operating segment. “Together, we are able to help our clients speed the deployment of unified communications applications and services while helping to minimize the costs, complexities and risks of deploying new technology in dynamic business environments.”
The Smoothstone product portfolio will be available to West’s large base of clients, adding cloud-based IP telephony to a growing list of unified communications solutions. Smoothstone will continue to offer its full portfolio of applications and services, and will continue in its mission to help leading enterprises transform the way they communicate.
About West Corporation
West Corporation is a leading provider of technology-driven, voice and data solutions. West offers its clients a broad range of communications and network infrastructure solutions that help them manage or support critical communications. West’s customer contact solutions and conferencing services are designed to improve its clients’ cost structure and provide reliable, high-quality services. West also provides mission-critical services, such as public safety and emergency communications.
Founded in 1986 and headquartered in Omaha, Nebraska, West serves Fortune 1000 companies and other clients in a variety of industries, including telecommunications, banking, retail, financial, technology and healthcare. West has sales and operations in the United States, Canada, Europe, the Middle East, Asia Pacific and Latin America. For more information on West Corporation, please call 1-800-841-9000 or visit www.west.com.
About InterCall
InterCall, a subsidiary of West Corporation, is the largest conference and collaborations service provider in the world and a leading provider of global cloud-based unified communications services. Founded in 1991, InterCall offers telephony, messaging, conferencing and collaboration tools for businesses of all sizes, from large global enterprises to small or regional companies. With a global footprint and broad service capabilities, InterCall’s flexible models for hosted, managed and on-premises communications services help companies get the most out of their business processes.
InterCall's strong U.S. presence, including four call centers and 26 sales offices, is bolstered by operations in Canada, Mexico, Latin America, the Caribbean, the United Kingdom, Ireland, France, Germany, Australia, New Zealand, China, India, Hong Kong, Singapore and Japan. For more information, please visit www.intercall.com.
About Smoothstone
Smoothstone IP Communications is the leading provider of cloud based communications for the enterprise – including MPLS-based application networking, enterprise voice, unified threat management, advanced contact center solutions, unified messaging and collaboration tools – all delivered as a unified suite of cloud-based applications. As part of West’s Unified Communications’ operating segment, Smoothstone’s scalable, on-demand applications and services can be integrated with a customer’s existing network and telecommunications infrastructure, operational processes, and employee activities, enabling customers to migrate to unified IP communications as their business requirements dictate. For more information, visit www.smoothstone.com or call 800.773.3037.
Source: West Corporation
