Dave Michels
Dave Michels is a Principal Analyst at TalkingPointz. His unique perspective on unified communications comes from a career involving telecommunications...
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Dave Michels | January 27, 2015 |


Thinking of Phones

Thinking of Phones Steve Kokinos, CEO of UCaaS innovator Thinking Phone Networks, gives us the lowdown on where the company is today and where it's headed.

Steve Kokinos, CEO of UCaaS innovator Thinking Phone Networks, gives us the lowdown on where the company is today and where it's headed.

When Steve Kokinos, CEO of Thinking Phone Networks, founded the unified communications as a service (UCaaS) provider in 2006, he did so with the vision of using communications to automate processes and uncover buried intelligence. At the time he observed: "Communications systems are the only applications that truly have 100% penetration across the entire enterprise." Lots has changed in the ensuing 9 years, so I caught up with Kokinos recently for an update on his vision and a status report on the company.

ThinkingPhones runs on an internally developed platform, delivering voice, video, mobility, presence/IM, messaging, collaboration, contact center, and communications analytics applications as cloud services. It is doing well, reporting revenue growth of more than 100% each year since 2012 and having recently raised $56.7 million in new funding to help ensure the trend continues. (This brings total funding at the Cambridge, Mass., company to approximately $89 million.)

Kokinos tells me that with this new investment ThinkingPhones will likely be able to double its current headcount, which sits around 250 today, by the end of the year. Additionally, the company intends to increase its investments in product development and international expansion, he says.

The UCaaS sector is crowded, but unlike the majority of the providers, ThinkingPhones is focused mostly on enterprise customers rather than small and medium-sized businesses (SMB). It primarily sells its services through an indirect channel.

Steve Kokinos, ThinkingPhones

What follows is an excerpt from our conversation. Read on for Kokinos' thoughts on the importance of the cloud, shifting enterprise communications requirements, the mobility mandate, and more.

No Jitter: You started ThinkingPhones ahead of the cloud's rise. Assuming you think ThinkingPhones is still ahead of the pack, tell me how.

Kokinos: The central theme we see in modern enterprise communications is the move toward mobile-centricity. End users want the same experience with work apps that they enjoy in their personal lives. Taking inspiration from that and delivering on messaging both internally and externally, having a great immersive experience with apps like Salesforce and Google Apps, and using analytics to help drive enterprise visibility in new directions are all critically important.

At the same time, enterprises require parity with legacy systems. While legacy hardware and software may not serve end-user desires, they do represent years, if not decades, of embedded business processes that dictate how companies interact with their customers and partners. Getting that right is critical, and we're the only ones in the cloud who can do that while still delivering a fresh, modern experience.

No Jitter: Many telecom firms are moving away from "Tel" in their names. Explain to me the name ThinkingPhones and which part of the name you consider more important.

Kokinos: Making enterprise communications more intelligent and intuitive, and helping businesses increase their agility is at the absolute core of what we do. Modern enterprise communications should enable new ways of interacting and addressing problems through thoughtful actions -- hence the "Thinking" portion of our moniker.

And while the "Phones" part of our name proves that we never lose sight of the fact that voice communications is central to our mission, we want to make it clear that what we do isn't about traditional telephony. The fact that people have a true emotional connection to their smartphones and tablets necessitates a new way of thinking about how companies and customers connect. The future of business communications is completely mobile and dynamic based on the context and location of each interaction. Drawing on that trend is a real positive from our viewpoint.

No Jitter: The majority of UCaaS providers target the SMB market. ThinkingPhones has always been more focused on larger accounts. What is the average size customer for ThinkingPhones, and is that average growing or shrinking?

Kokinos: From the beginning, we felt there was a lack of emphasis on larger enterprises in the UCaaS market. When you dig into why, it has a lot to do with the complexity and breadth of requirements. We built our platform from the ground up to handle a wide range of traditional voice requirements (complex IVRs, contact center functionality, parking, paging, administrative controls) while at the same time delivering a modern, mobile-focused experience that brings communications into today's cloud ecosystem.

We've been seeing customer sizes trending upwards pretty quickly -- the average today is about 1,000 users but we're seeing growing demand with larger enterprises consisting of tens of thousands of users.

Continue to the next page for more from Kokinos


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