XO Stakes a Claim in the Unified Communications Market with Launch of Enterprise Cloud Communications

| Mar 1, 2011 | Voice and Unified Communications Services
| Analyst: Cindy Whelan

Event Summary

February 28, 2011 – XO has launched XO Enterprise Cloud Communications, an enterprise-grade IP communications service that offers enterprise IT administrators a scalable, cost-effective IP communications solution. XO Enterprise Cloud Communications offers a range of cost, operational and performance benefits, and includes IP telephony and UC applications, free local and site-to-site calling, enterprise-wide HD voice and HD video, a Web portal for management, Cisco or Polycom handsets, MPLS IP-VPN network services, SLAs and business continuity options.

Quick Take

Analytical Summary

• Current Perspective: Moderate on XO’s launch of Enterprise Cloud Communications, because the solution will offer SMB/SMEs a solution that will offer potential capital cost savings by eliminating the purchase of premises equipment and reduced operational costs by offloading maintenance of equipment and software. XO has noted that this is the first phase in its cloud services strategy; customers can expect to see additional unified communications features added over time.

• Vendor Importance: High to XO, because the launch represents XO’s move into the hosted communications services market. The carrier has offered premises-based voice, data and Internet services for years, but lacked a hosted VoIP solution. XO’s launch of Enterprise Cloud Communications provides the carrier’s SMB/SME base with a network-based VoIP solution and gives the carrier a foundation to layer on additional collaboration and communications features in the future.

• Market Impact: Moderate to competitors offering unified communications services, because the market is still young and carriers are in the early stages of developing and launching network-based services. At this point, XO’s offer consists of just voice and video, with the promise of new collaboration and communications features to be added in the future.

CLIENTS ONLY

Current Perspective

Competitive Strengths and Weaknesses

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Analytical Perspective

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