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End Customers
Unlike large enterprises, most SMBs aren't typically so concerned about the vendor and/or platform powering their services. The change in BroadSoft technology ownership is likely to have limited impact on their purchase behavior as long as the providers can offer compelling services packages and pricing.
Cisco's acquisition of BroadSoft may, however, create opportunities for BroadSoft technology deployments in the upper mid-market and enterprise. Cisco's brand is particularly strong in that customer segment and can help boost BroadSoft adoption among businesses that may require more cost-effective cloud communications solutions, but tend to trust the Cisco brand more than those of competitors.
Customers with both Cisco and BroadSoft technology investments may potentially benefit from tighter integration of their different technology stacks. They may be able to capitalize on some opportunities for hybrid deployments comprising best-of-breed elements of both vendors' portfolios.
Customers may, however, be negatively affected by Cisco efforts to rationalize its UCaaS applications suite, as this may lead to new user interfaces and the need for new custom integrations. Depending on how Cisco evolves the different technology stacks, potential changes may have a positive impact in the long run, but could be disruptive or at least challenging for existing customers in the short run. Possible strategic moves by Cisco to more heavily promote its own communications endpoints at the expense of third-party vendors could also negatively affect customers with existing investments in Grandstream, Mitel, Polycom, VTech, Yealink, and other devices. Businesses expanding their BroadSoft deployments may be particularly concerned about continuity in user and admin functionality, as well as endpoints.
Conclusion
In one broad swipe, Cisco filled a gap in its portfolio, dramatically expanded its share in the rapidly growing UCaaS market, created more opportunities to sell its communications endpoints, entered the SIP trunking and residential VoIP space, and eliminated a formidable competitor. Should the acquisition complete successfully, it will be well worth Cisco's $1.9 billion investment. Changes are likely to take place; most will be for the better, but some may pose challenges to the BroadSoft ecosystem. Like most other acquisitions, the Cisco-BroadSoft deal could be viewed as a sacrifice of competitive options for the benefit of a stronger UCaaS market growing forward.
Get more insight from Frost & Sullivan at Enterprise Connect 2018, March 12 to 15, in Orlando, Fla., in the session, "Decision Factors in Choosing a UCaaS Provider," as part of the Cloud Communications track. Register now using the code NOJITTER to save an additional $200 off the Advance Rate or get a free Expo Plus pass.
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