& cplSiteName &

The Future of Metaswitch

Phil Harvey
The Philter
Phil Harvey
10/4/2012
50%
50%

6:00 AM -- ORLANDO, Fla. -- Metaswitch Forum 2012 -- John Lazar has taken the stage and is, once again, ready for his close-up.

Not that John Lazar, the other one.

Lazar, named Metaswitch's CEO in June, has been out of the driver's seat for two years as the company was being run by Kevin DeNuccio, the former Redback Networks Inc. chief who had caviar wishes and IPO dreams. (See DeNuccio Replaced as Metaswitch CEO.)

DeNuccio is still on Metaswitch's board, and Lazar says he consults with DeNuccio regularly.

But Lazar isn't here talking growth, necessarily. He's using the word transformation an awful lot. The time away from the CEO chair allowed him to look at the company he's worked for since 1987 more objectively.

Now that he's back, the former software engineer is describing Metaswitch as a "software company." He's not just trying to sound hip. His four-part strategy provides a glimpse into a company that is helping its customers modernize their networks, while giving them a reasonable path to provide revenue-generating services that businesses and consumers want, over IP networks.

The challenge facing Lazar is interesting. Metaswitch had revenues last year around $156 million, and it now has about 650 employees, of which 300 are engineers. But the kinds of customers he has built Metaswitch's business on aren't necessarily the same ones that will take advantage of its most leading-edge capabilities.

Lazar, then, is looking at a future where Metaswitch could very well become less of a telecom infrastructure provider and more of a Web-scale, network service enabler. To stay relevant in that context, Metaswitch would have to court over-the-top providers that aren't phone companies, don't own telecom networks, and are the very companies poised to take revenues from Metaswitch's oldest customers.

A Four Point Plan
Lazar's first priority, though, is to focus his business. He used his keynote here to declare that Metaswitch will solidify its position as a premium name in VoIP infrastructure. That is Metaswitch's main business now, and larger firms like Genband Inc. , Ericsson AB (Nasdaq: ERIC) and others are currently in command of more market share. But product managers in sessions here are frequently citing higher quality calls and simpler software interfaces as living proof that Metaswitch has a distinct market advantage, even if they're not shipping as many boxes as competitors.

The next item in Lazar's strategy is to take advantage of the business services market. How? By better enabling telcos of all sizes to sell hosted business voice services to enterprises and giving them a way to add value along the way.

At this show I'm introduced to Integra Telecom Inc. , which is using Metaswitch gear to provide a hosted voice service to businesses in its 35 metro markets. Such capabilities could enable Integra to go to war with other telcos, selling business voice and related hosted services in territories where it doesn't have facilities.

Integra execs say that a hosted solution is a "marginal, but meaningful improvement" in the business when compared to the economics of selling a managed PBX service. But competition someday may require Integra to be more flexible and to consider wholesaling services or competing outright in other markets, and this is sort of an insurance policy.

The third part of Lazar's plan is to position Metaswitch as a solid alternative supplier in the session border controller market, which Acme Packet Inc. (Nasdaq: APKT) dominates. He noted that he's "blown away" by the level of complacency he gets when talking to service providers about denial of service attacks. "You can't predict what's going to hit you," he told the crowd here.

Finally, Lazar wants Metaswitch to, on behalf of its customers, clarify what the cloud means. In step with that item, Martin Taylor, Metaswitch's CTO, used his keynote to outline how Metaswitch, which now sells its products via specialized hardware, will move to standard, commodity servers, then to virtualized servers and, finally, to services that are designed specially for the cloud.

For the rest of the story, go to Page 2.

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
fgoldstein
50%
50%
fgoldstein,
User Rank: Light Sabre
12/5/2012 | 5:19:49 PM
re: The Future of Metaswitch


The company now called Metaswitch was for years Data Connection Ltd., a software company building protocol code.  The original Metaswitch product took a lot of their existing code modules that had gone into other companies' products, filled in some gaps, and created a CO switch that ran entirely on merchant iron.  This was simultaneously radical and obvious, a smart place to be.


DCL renamed the company after the product that came to dominate its sales. But it's still a software comany at heart, whose core skill is making things work on commodity hardware.  The secret sauce is in support, which they do very well. So it's natural for them to recombine their software modules to address new markets.

RBR
50%
50%
RBR,
User Rank: Light Beer
12/5/2012 | 5:19:47 PM
re: The Future of Metaswitch


Redux Cisco.  Routers and Switches are just appliances to run their software.  Right move for Metaswitch, tough love to their valued customer base; transform with us, or hello telegraph. 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:19:46 PM
re: The Future of Metaswitch


Ummm...I worked security appliances which were simply x86 servers running FreeBSD or Linux.  Routers tend to have things like switch fabrics and specialized high performance I/O.  Except at the low end they are definitely NOT appliances.  I can not imagine how many Dell Blade Servers would be required to provide the network throughput of a CRS-1.  


seven


 

RBR
50%
50%
RBR,
User Rank: Light Beer
12/5/2012 | 5:19:36 PM
re: The Future of Metaswitch

Dearest brook, you are welcome to call that hardware running switching or routing software whatever you like.  I’ll leave that between you and Cisco / VMware. 

Of import is Phil’s column and excellent panel discussion at the Metaswitch Forum (kudo’s Phil, well done) on the impact of virtualization on both vendor and service provider.  It is far too easy for us to associate a vendor with the hardware they sell, or a service provider with the physical network they operate.  As Mr. Lazar and team hammered home, it is our intellect and product awareness of how telephony services are provided, manifested in software for vendors, or business practices for a service provider, where our comparative advantages in the future market resides.  Hitherto, placement of our hardware or our geography defined our respective market space.  Mr. Lazar clearly sees the need to expand his market through virtualization and his team is enthusiastically coaching service providers to do the same.   The same forces are at work with OTT on MVPD’s and Aps on Mobile Wireless Service Providers.

Last year’s Forum highlighted the physical network and pipe, bolstering service providers to transform how they see themselves.  This year, MetaSwitch cut the cord between network and service, aware that their customers must do the same.  Those centered on the access, the physical network, must seek the support of that ecosystem (a very viable market, ripe with opportunity). Those confident in their telephony service can join MetaSwitch to compete in the cloud.  Point being, MetaSwitch can no longer rely on hardware sales to sell their product, and Local Exchange Carriers can no longer rely on telephone service, to sell their access.  Virtualization is changing everything.  Bernie’s companion commentary (Oct 5, 2012) sums it up well.  Time to decide is now.


 

RBR
50%
50%
RBR,
User Rank: Light Beer
12/5/2012 | 5:19:35 PM
re: The Future of Metaswitch


AFC was a great company, liked your stuff. 


Agreed, Hosted IP PBX is indeed tough, and trixbox is a very viable market killer already, not to mention the Microsoft or Google free stuff coming.  Its more the telephony service, legacy PSTN interface, and knowing telephone products where LEC's have advantage they need to leverage.  Indeed, the whole concept of a PBX is likely fading.  What remains are customer needs for voice communications, those specialized aps that are used like call fowarding, hunt gorups, auto attendant, find-me-follow-me, etc... and providers who understand both need and solution.  Ever watch an IT professional sell a UCM, ugly...  


MetaSwitch and LEC's have a symbiotic future, as you aptly allude "both good and ill".


Cheers.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:19:35 PM
re: The Future of Metaswitch


RBR,


I don't work at Cisco or VMWare and never have.  The last company that I worked for that is known here is AFC.  I have talked about working in a company that is in the Email Security business as a SaaS vendor.


There are many people in the virtual "Unified Communications" business.  Metaswitch for both good and ill will now have a whole new set of competitors.  Like Microsoft for example.  Not saying that they can't do well, just this is NOT new ground.  Heck there are even open source switches in this space.


seven


 

More Blogs from The Philter
There's an interesting tension between how much SDN can benefit service providers and how it could threaten their established businesses
Stanford's Nick McKeown says SDN won't take hold until networking equipment vendors give up some control
OneAPI may provide developers a reason to build apps and content for networks, not just mobile operating systems
Ericsson CEO Hans Vestberg defends his company's managed services deals and says he'd rather invest in R&D than make expensive acquisitions
Use our message boards to share photos from your Barcelona experience this week
Light Readingís Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
LIVE NOW!
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
UPCOMING COURSE SCHEDULE
Friday, December 2, 1:00PM EST
The SDN Approach to IP & Optical Integration
Sterling Perrin, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (1) comment


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
ITU: The Broadband Is Our Future

11|29|16   |     |   (0) comments


At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
LRTV Custom TV
Tackling 5G in Dallas

11|28|16   |     |   (0) comments


Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
LRTV Interviews
Cox Prepping for Virtualization Trials

11|14|16   |     |   (0) comments


In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
LRTV Custom TV
Drivers & Potential of NGP

11|11|16   |     |   (0) comments


ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
LRTV Custom TV
Huawei IP 2020 for Future Networks

11|11|16   |     |   (0) comments


Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
LRTV Custom TV
Digital Object Architecture

11|11|16   |     |   (0) comments


Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
LRTV Custom TV
BT's Openreach Has High Hopes for Long-Reach VDSL

11|11|16   |   06:04   |   (0) comments


Peter Bell, Network Portfolio CIO at BT's access business Openreach, talks about the operator's trial of a new broadband access technology called Long Reach VDSL.
Upcoming Live Events
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T Debuts DirecTV Now on New Video Platform
Mari Silbey, Senior Editor, Cable/Video, 11/28/2016
Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
Dan Jones, Mobile Editor, 11/30/2016
Altice Plans FTTH for Entire US Footprint
Iain Morris, News Editor, 11/30/2016
Altice FTTH Bill Could Hit Almost $9.6B in US
Iain Morris, News Editor, 12/1/2016
Samsung Bows to Investors, Considers Revamp
Iain Morris, News Editor, 11/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.