[VoiceOps] Acquire MetaSwitch
Peter Rad
peter at 4isps.com
Wed Aug 14 20:25:50 EDT 2024
Companies that big have a rule, if it isn't a $100M in revenue quick, it
gets killed.
Quarterly revenue is $60B!
A $100M product is a 0.17% of revenue.
Metaswitch's 2019 financial report shows annual revenue of $180 million.
Selling telco gear isn't a billion dollar business.
Revenue in Productivity and Business Processes was $20.3 billion and
increased 11% (up 12% in constant currency), with the following business
highlights:
·Office Commercial products and cloud services revenue increased 12% (up
13% in constant currency) driven by Office 365 Commercial revenue growth
of 13% (up 14% in constant currency)
·Office Consumer products and cloud services revenue increased 3% (up 4%
in constant currency) and Microsoft 365 Consumer subscribers grew to
82.5million
·LinkedIn revenue increased 10% (up 9% in constant currency)
·Dynamics products and cloud services revenue increased 16% driven by
Dynamics 365 revenue growth of 19% (up 20% in constant currency)
Revenue in Intelligent Cloud was $28.5 billion and increased 19% (up 20%
in constant currency), with the following business highlights:
·Server products and cloud services revenue increased 21% (up 22% in
constant currency) driven by Azure and other cloud services revenue
growth of 29% (up 30% in constant currency)
Revenue in More Personal Computing was $15.9 billion and increased 14%
(up 15% in constant currency), with the following business highlights:
·Windows revenue increased 7% (up 8% in constant currency) with Windows
OEM revenue growth of 4% and Windows Commercial products and cloud
services revenue growth of 11% (up 12% in constant currency)
·Devices revenue decreased 11% (down 9% in constant currency)
·Xbox content and services revenue increased 61% driven by 58 points of
net impact from the Activision acquisition
·Search and news advertising revenue excluding traffic acquisition costs
increased 19%
Microsoft returned $8.4 billion to shareholders in the form of share
repurchases and dividends in the fourth quarter of fiscal year 2024.
On 8/14/2024 6:05 PM, Jeff Brower wrote:
>
> Peter-
>
> What I think you're saying is that Microsoft acquired Metaswitch
> because of their cloud native communications technology, and they
> still like that, but are now shedding the physical equipment part of
> the business.
>
> That makes business sense for Microsoft Sr management, but there is
> revenue in non-Azure edge communications and AI, maybe not M$ level of
> multiple billions, but substantial and growing. Retail surveillance,
> robotics in factories, automated vehicles, etc need communications and
> inference specifically not in the cloud -- cheap, instant response,
> 100% fail-safe reliable, and private. I find it hard to see Metaswitch
> guys who spent 25+ years building a successful combined hardware +
> software business, who were very good at it and for whom AI is a
> natural fit with their signal processing and HPC background, watching
> it and their customer base disappear. But as you say, maybe they are
> happy with it.
>
> -Jeff
>
> Quoting Peter Rad via VoiceOps <voiceops at voiceops.org>:
>
>> That's not happening. The Metaswitch employees I know that are left
>> are happy taking marching orders from M$.
>>
>> The problem the softswitch industry had was that the pie was stable.
>> It wasn't growing, so you weren't selling new logos. You were just
>> supporting customers - and that isn't a growth business nor is it a
>> profitable business.
>>
>> The problem is that of the 900 operators using Metaswitch in the US,
>> most are mom and pop and rural. That doesn't convert to "Going Azure."
>>
>> These mom-and-pop's will have to make due with what they have for the
>> next 5 years - and use that 5 years as a runway for an exit strategy.
>>
>> The largest Metaswitch white-label provider just went to CXDO, so the
>> writing on the wall that I have been seeing for 2 years, others are
>> now seeing.
>>
>> Regards,
>>
>> Peter @ RAD-INFO
>>
>> On 8/13/2024 3:54 PM, Jeff Brower via VoiceOps wrote:
>
> Not sure about Affirmed, but I know some of the original MetaSwitch
> guys, and a few still at Microsoft. They were, and I suspect still
> are, extremely dedicated and capable. My guess is they will find a way
> to spin out / buy out MetaSwitch in some form it will continue.
>
> -Jeff
>
> Quoting Jawaid Bazyar via VoiceOps <voiceops at voiceops.org>:
>
>> I have a use case. The use case is, be in a position to take
>> customers tomorrow on a 5/9's platform.
>> One alternative is Ribbon: that solution is out of my price range,
>> and, likely out of price range of every rural ILEC I know.
>> A second is Squire, but, I'm not willing to risk it w/o getting my
>> hands on a long-term trial which was requested but not offered.
>> The final alternative is to throw into developing one, likely in two
>> phases. The orchestration and front end of the Elephant Talk project
>> is complete, now just need to settle on a production backend.
>>
>> On Tue, Aug 13, 2024 at 3:33 PM Alex Balashov via VoiceOps
>> <voiceops at voiceops.org> wrote:
>>
>> I suppose this all raises the question of why on earth you'd want
>> to acquire a Metaswitch, but you've clearly got an angle.
>>
>> -- Alex
>>
>> > On Aug 13, 2024, at 3:20 PM, Jawaid Bazyar via VoiceOps
>> <voiceops at voiceops.org> wrote:
>> >
>> > "Microsoft's end game is for every operator to have a big pipe
>> to Azure to access Metaswitch, vSBC, Teams and other components."
>> >
>> > My question is, can you actually run a MetaSwitch CFS in Azure?
>> Because to my knowledge, you cannot.
>> >
>> > I would be very interested if I was wrong about this.
>> >
>> > Jawaid
>> >
>> >
>> > On Tue, Aug 13, 2024 at 12:56 PM Peter Rad via VoiceOps
>> <voiceops at voiceops.org> wrote:
>> > Besides getting rid of their Max UC softphone (to make MS Teams
>> THEE softphone), they did EOL a lot of the Meta product.
>> >
>> > We - RAD-INFO, ECG and Andrew Ward - did a webinar about it in
>> May. You can watch the recording here:
>> https://info.ecg.co/webinar-recording-broadworks-metaswitch-netsapiens-ribbon
>> >
>> > Microsoft's end game is for every operator to have a big pipe
>> to Azure to access Metaswitch, vSBC, Teams and other components.
>> >
>> >
>> > Let me know if there is anything I can do for you. Thank you.
>> >
>> > Regards,
>> >
>> > Peter Radizeski
>> > RAD-INFO INC
>> > Telecom Consultant
>> > Bandwidth * Voice * Cloud * Data Center * Internet * CyberSecurity
>> > (813) 963-5884
>> >
>> >
>> >
>> > On 8/13/2024 8:41 AM, Mike Hammett via VoiceOps wrote:
>> >> "Given the MetaSwitch products are no longer sold, and
>> Microsoft is EOLing them, and not taking new support contracts..."
>> >>
>> >>
>> >> That's news to me.
>> >>
>> >>
>> >>
>> >> -----
>> >> Mike Hammett
>> >> Intelligent Computing Solutions
>> >> http://www.ics-il.com
>> >>
>> >>
>> >>
>> >> Midwest Internet Exchange
>> >> http://www.midwest-ix.com
>> >>
>> >>
>> >>
>> >> From: "Jawaid Bazyar via VoiceOps" <voiceops at voiceops.org>
>> >> To: "voiceops" <voiceops at voiceops.org>
>> >> Sent: Tuesday, August 13, 2024 7:23:05 AM
>> >> Subject: [VoiceOps] Acquire MetaSwitch
>> >>
>> >> Hello,
>> >>
>> >> We are in the market to acquire / take over a MetaSwitch CFS.
>> In particular, we're looking for the virtual edition that runs
>> purely in VMWare.
>> >>
>> >> The components we'd need are:
>> >> CFS
>> >> MRS (Media Resource Server)
>> >> Perimeta
>> >> SAS (Service Assurance Server)
>> >> MetaView Server
>> >>
>> >> These are fairly common components.
>> >>
>> >> Given the MetaSwitch products are no longer sold, and
>> Microsoft is EOLing them, and not taking new support contracts,
>> we're not talking about a big cash up front kind of deal, but,
>> instead a revenue share kind of arrangement.
>> >>
>> >> Anyone that has one and is interested, contact me directly
>> off-list.
>> >>
>> >> Cheers,
>> >>
>> >> Jawaid
>> >>
>> >>
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>> >>
>> >
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>> --
>> Alex Balashov
>> Principal Consultant
>> Evariste Systems LLC
>> Web: https://evaristesys.com
>> Tel: +1-706-510-6800
>>
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