No Jitter: ShoreTel and M5: 10 Talking Points

    Earlier this month, ShoreTel announced its intention to acquire M5 Networks. The highlights of the deal include an M5 valuation of $160M (estimated to be about four times revenue), of which about half will be paid in cash. ShoreTel intends to operate M5 as a subsidiary, with key M5 management remaining. This was, in my opinion, a fairly significant announcement for ten reasons.

    1) Acknowledgement of Hosted Voice
    Hosted voice, enabled by VoIP, has been around for a little longer than a decade. Until VoIP, telecom was severely limited by geography. There were workarounds, but VoIP is naturally geo-independent. Now, a service provider can serve the nation from just one data center. A recent report by Gartner shows the IP Voice-as-a-Service market growing at a 36 percent compound annual growth rate in North America through 2015, to $2.2 billion. But, as Gary Kim points out, when compared to the entire sector, hosted voice could represent less than six-tenths of 1 percent of US industry revenue.

    Read more at No Jitter.

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