ShoreTel Blows $11.4 Million
Today’s news includes ShoreTel’s acquisition of Agito Networks. For those of you that have never heard of Agito, join the club. The company was a pioneer in the concept of making mobile phones PBX extensions – what every major telephony solution does today. In fact, ShoreTel just released its new Communicator client for iPhone and BlackBerry devices.
Andy Abramsom writes of Agito: “Founded by Pej Roshan, and ex Cisco marketing executive, the company was the first to commercialize the concept of an extended enterprise on the Blackberry, accomplishing that largely without much help from RIM…Agito’s early moves were like many VOIP and FMC companies, well ahead of the market, but unfortunately without more cash infusion Agito was never going to gain more traction with the mobile operators any more than they had early on.”
Agito’s core technology consists of a tight integration with mobile phones such as RIM’s BlackBerry devices (the ones precariously close to the edge of relevance) and its ability to work with multiple brands of phone systems including those from Alcatel, Digium, Avaya, Cisco, Microsoft, Mitel, Nortel and oh yes, ShoreTel. Agito’s RoamAnywhere product connects these multiple UC systems and many of their features to cellular phones.
At one time, this technology was really impressive. You can for example, route an incoming call into the phone system to a cellular phone via Wi-Fi or 3G. But I am confused exactly what ShoreTel intends to do with their new mobility play. I think Agito’s success with non ShoreTel brands will be compromised, and the company does not currently support Android or Microsoft Phone 7. Nor does the world seem particularly interested in FMC solutions.
Perhaps $11.4 Million was a bargain too good to pass up. I am not familiar with Agito’s patents or revenue. My concern is ShoreTel has a lot of priorities – like moving off MGCP to SIP or separating its appliance concept to a software solution that can be virtualized, or even finding a new CEO (all of which are projects currently underway). Just seems like the acquisition has the potential to be a distraction. The play isn’t very clear to me, and the technology of Agito (support Nokia phones on an Avaya Call Manager) doesn’t seem particularly strategic to ShoreTel.
Good luck with that.
Hi Dave,
So is your assertion that all the other PBX companies do single number dial to mobile phones well? That's the bit I don't buy.
Cheers,
Abner
Hello Mr. Michels,
Thank you for sharing your view on our recent acquisition of Agito Networks. I'd like to offer some additional information for you and your readers, and provide some feedback on you posting.
"The company (Agito Networks) was a pioneer… what ever major telephony solution does today."
>> Agito does offer several unique capabilities which are not available from the incumbent larger VoIP PBX providers. There any many customers that have selected Agito for several reasons.
"ShoreTel just released its new Communicator for iPhone and BlackBerry"
>> We have had solutions for BlackBerry and other platforms for several years, sold as our ShoreTel Mobile Call Manager. Support for the iPhone is new with our Release 11 software, and all are generally available.
"I'm confused exactly what ShoreTel intends to do"
>> ShoreTel plans to functionally integrate Agito's solutions with our solutions, in a manner that will continue to be brilliantly simple for users and administrators. We will continue to offer Agito (aka ShoreTel Mobile) to Avaya, Cisco and other system customers.
"I think Agito's success with non ShoreTel brands will be compromised"
>> I respect your view, but I believe the solutions will be even more appealing for the end customers, as they now can leverage ShoreTel's support and financial strength. Our competitors will certainly put up challenges, but they cannot get around the fact that the ShoreTel Mobile solution is superior to what they offer. We'll let the customers decide what is best for them.
"Company does not support Android or Microsoft Phone 7"
>>We plan on supporting the devices based on the demand of customers. As you are aware, each Android device has unique properties requiring validation, and Microsoft Phone 7 is still early in adoption by business users.
"ShoreTel has alot of priorities like moving off MGCP to SIP…."
>> We always have had many priorities to manage in the company. The only priority that matters is to deliver products resulting in the highest customer satisfaction, which is also reflected in our increased market share and record sales levels.
"Nor does the world seem particularily interested in FMC."
>> This is just like the iPad. At first, it was viewed as a neat device. After you use it, you start to see why it changes the way you work. I use the Agito solution every day. The sound quality is perfect in our building and the handoff when I go to my car happens without even having any change in sound. I can see why Agito's customers are just as much of raving fans for this as ShoreTel customers are. I'd enjoy having you come to Sunnyvale and try it.
"Just seems like the acquisition has the potential to be a distraction."
>>It's actually an tremendous opportunity to reduce the development time, and time to market. There is considerable synergy with our combined solutions. As you've seen with move, we didn't announce ShoreTel 'plans to acquire', followed 3 months later by 'completes" acquisition. We are already working on the technology integration which is very well understood.
"Technology doesn't seem particularly strategic to ShoreTel."
>> We wouldn't invest in this technology if we didn't believe it was of high value to customers. I'm pretty confident that in a year from now, this will be viewed as a game changer for ShoreTel. You can be sure the people here are working to make that happen.
And we have about 100 open requisitions if there are readers that would like to join the team and help make it happen!
Please feel free to contact me if I can ever be of assistance.
Regards,
Bernard Gutnick
Senior Director
ShoreTel
[email protected]
Bernard,
Thank you for the more detailed explanation. Mobility is clearly a critical component of unified communications.
The industry is moving quickly and bold moves are necessary to win. May the acquisition go smoothly and the customers of both firms benefit.
Dave