Sheila McGee-Smith
Sheila McGee-Smith, who founded McGee-Smith Analytics in 2001, is a leading communications industry analyst and strategic consultant focused on the...
Read Full Bio >>

Sheila McGee-Smith | October 07, 2015 |


8x8 Cloud-Enables Regus Re-Invention

8x8 Cloud-Enables Regus Re-Invention UCaaS provider 8x8 lands big deal with workplace provider Regus, and plans to start migration for roughly 2,500 locations.

UCaaS provider 8x8 lands big deal with workplace provider Regus, and plans to start migration for roughly 2,500 locations.

After the stock market closed on Oct. 5, UCaaS provider 8x8 announced a deal with Regus, a global workplace provider, to deploy 8x8's cloud-based enterprise communications service. As an industry analyst and regular contributor to No Jitter, I am often briefed on such announcements before they are made public. There were no pre-briefings on this news, a signal that the company may have considered it to be "material."

In the world of financial markets, news released by a company that might affect the value of its securities or influence investor decisions is considered material. Material news includes information such as unusual corporate events, unexpected earnings results (whether good or bad), stock splits, etc.

I spoke with 8x8 CMO Enzo Signore about this news, and the first thing I wanted to know was what it is about the announced deal that might make it material? He responded that it is the potential size of the deal. At a very high level, the numbers look like this:

  • Regus currently has 2,500 locations and is growing fast.
  • The company added 452 locations in 2014, 231 in the first half of 2015, and has plans to finish the year with 600 new locations.
  • Each location typically has about 30 tenants, each tenant typically has 1-10 telephone lines, sometimes as many as 20-25.
  • Even using a conservative average of 5 users per tenant, the total addressable market in the account is 375,000 users.

No matter what monthly user fee one attaches to that end number, the potential impact on 8x8 revenue is material by any measure.

Note my use of the word "potential." There are no promised minimums, nor a defined pace, for adoption of 8x8 by Regus at this time. In any matter, it is significant that as Regus began looking for a new communications solution, it only evaluated cloud-based solutions. As seen in the graphic below (from Regus's second quarter earnings call in August), Regus is interested in more than just like-for-like dial-tone replacement. It understands that businesses that use virtual office services are looking for more mobile and work anywhere applications -- and 8x8 was chosen with that need in mind.


The initial plan is to start deploying 8x8 in 140 sites in the U.S., U.K., and Europe. These first sites will be new center openings. After that, Regus will start the migration of centers with legacy PBXs, which include Cisco, Avaya, Mitel and Nortel systems.

I asked Signore if there was contact center opportunity with Regus in addition to 8x8's Virtual Office Pro that Regus says it will eventually offer to all customers. Signore said that the contact center opportunity is in the future and could potentially be both sell-to and sell-through. Initially, Regus will use 8x8's Switchboard Pro application to manage live answering of calls to its tenants. Over time, it may consolidate that function, say regionally, using contact center technology. Another opportunity would be to offer tenants their own ability to create and staff small contact centers -- a great two-tier go-to-market model for the 1-5 agent contact center target market.

A material deal? I think so.

Follow Sheila McGee-Smith on Twitter and Google+!
Sheila McGee-Smith on Google+


Enterprise Connect Orlando 2018
March 12-15 | Orlando, FL

Connect with the Entire Enterprise Communications & Collaboration Ecosystem

Stay Up-to-Date: Hear industry visionaries in Keynotes and General Sessions delivering the latest insight on UC, mobility, collaboration and cloud

Grow Your Network: Connect with the largest gathering of enterprise IT and business leaders and influencers

Learn From Industry Leaders: Attend a full range of Conference Sessions, Free Programs and Special Events

Evaluate All Your Options: Engage with 190+ of the leading equipment, software and service providers

Have Fun! Mingle with sponsors, exhibitors, attendees, guest speakers and industry players during evening receptions

Register now with code NOJITTEREB to save $200 Off Advance Rates or get a FREE Expo Pass!

December 13, 2017

The two major vendors in the Unified Communications space, Cisco and Microsoft, are both strongly promoting their cloud UC deployments. If cloud UC is on your enterprises roadmap, but you dont want

November 29, 2017

As video conferencing use rises in the enterprise, businesses are looking for ways to bring this technology out of traditional conference room and make it more broadly accessible. That's made the h

November 1, 2017

Your customers (internal and external) demand that you offer them the ability to connect by any means. With the adoption of cloud communications tools you now have access to an expanded portfolio o

November 30, 2017
With a ruling on the FCC's proposed order to dismantle the Open Internet Order expected this month, communications technology attorney Martha Buyer walks us through what's at stake.
October 23, 2017
Wondering which Office 365 collaboration tool to use when? Get quick pointers from CBT Nuggets instructor Simona Millham.
September 22, 2017
In this podcast, we explore the future of work with Robert Brown, AVP of the Cognizant Center for the Future of Work, who helps us answer the question, "What do we do when machines do everything?"
September 8, 2017
Greg Collins, a technology analyst and strategist with Exact Ventures, delivers a status report on 5G implementation plans and tells enterprises why they shouldn't wait to move ahead on potential use ....
August 25, 2017
Find out what business considerations are driving the SIP trunking market today, and learn a bit about how satisfied enterprises are with their providers. We talk with John Malone, president of The Ea....
August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.