& cplSiteName &

Matrixx Lines Up New Customers, Funding

Iain Morris
3/9/2016
50%
50%

Matrixx Software is set to announce details of new customers and a new round of funding just weeks after teaming up with Salesforce partner Vlocity on a cloud-computing service, Light Reading has learned. (See Matrixx, Vlocity Launch Go Digital.)

The highly regarded Silicon Valley-based company -- winner of the Outstanding OSS/BSS Vendor trophy at the 2015 Leading Lights awards -- is one of several startups looking to address telcos' requirements for more sophisticated IT systems as digital services become increasingly popular. (See Leading Lights Awards 2015: The Winners and Leading Lights 2015 Finalists: Outstanding OSS/BSS Vendor.)

Swisscom, Australia's Telstra and Vodafone New Zealand already make use of the company's real-time charging and policy products, while the investment arms of Swisscom AG (NYSE: SCM) and Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) are also investors in Matrixx Software Inc.

Matrixx now appears to be on the cusp of a new phase of growth. In January, it announced a major strategic partnership with Vlocity Inc. , a cloud software company that last year raised $42.8 million in a funding round led by Salesforce.com Inc. .

The tie-up was spurred by growing demand among service providers for "a stack that is digital and cloud-based and can be up and running in three to five months," according to Jennifer Kyriakakis, one of Matrixx's two founders (along with CEO Dave Labuda) and its current vice president of marketing.

"We have a big piece of the solution -- the real-time engine, the digital commerce functionality, real-time self-service -- but we didn't have the front-end, omnichannel, CRM-type experience of Vlocity," she says. "Together we have an end-to-end stack that an operator can use to launch a new brand and get to market quickly."

Around half of the conversations Matrixx is now having with prospective customers are about using the service it has developed with Vlocity, according to Kyriakakis.

"There are people trialing it who have invested [in Matrixx] and there are people trialing it who have not invested," she tells Light Reading.

The appetite for Matrixx's technology has been especially strong in the Asia-Pacific, says Kyriakakis, where competition in consumer mobile markets has been "cut-throat." New customers will be revealed soon, she indicates.

But the company is also getting closer to potential customers in Europe: Matrixx today announced that it has joined BT's Innovation Martlesham tech cluster, a "collaborative ecosystem of ICT companies focused on the development of next-generation technologies and the sharing of innovative ideas and concepts" based at the UK incumbent operator's R&D headquarters. (See Matrixx Joins BT’s Innovation Martlesham Community.)


Want to know more about cloud services? Check out our dedicated cloud services content channel here on Light Reading.


Matrixx is also about to announce details of new funding commitments, having previously raised more than $33.6 million in five rounds of funding since it was founded in 2009: The total amount the company has raised is likely much greater than that, as Light Reading believes the company's as-yet-undisclosed May 2014 round, led by Telstra Ventures, was north of $13 million, while its April 2012 round led by Swisscom Ventures is also undisclosed.

Other investors include private equity firms Adam Street Partners, Greylock Partners , Innovacom and Tugboat Ventures.

Salesforce as a suitor?
The involvement of Salesforce in Vlocity -- whose technology is actually based on the Salesforce platform -- suggests the software-as-a-service pioneer is looking to play a much bigger role in the markets targeted by Matrixx.

"I think you'll see Salesforce pushing more into the communications space with a B2C offering," says Kyriakakis when asked if other strategic partnerships are in the pipeline.

Matrixx marketing maven Jennifer Kyriakakis tries to avoid the telecom paparazzi...
Matrixx marketing maven Jennifer Kyriakakis tries to avoid the telecom paparazzi...

While Matrixx and Vlocity are initially catering to mobile operators rolling out digital services under a "second brand," they plan on expanding the offering to cover enterprise and fixed-line service evolution. "We are looking together with Salesforce and Vlocity to cover a three- to five-year evolution [of customer systems]," says Kyriakakis.

All of this raises the possibility that Salesforce could be announced as one of Matrixx's new investors and that it could even be a prospective suitor. Kyriakakis would not comment when asked if Matrixx has fielded takeover offers.

Even so, it may be an increasingly attractive target given the benefits that early adopters of its technology appear to have realized.

According to Kyriakakis, Telstra has seen a 40-50% drop in call center traffic since it began working with Matrixx, taking a huge cost out of its business. Perhaps more importantly, she says, its average revenue per user has risen by 5% over that period as customer transactions have shifted online.

"People are buying additional services and more data because Telstra has removed the fear of doing that by giving customers more transparency," says Kyriakakis.

Matrixx obviously faces competition from established vendors that have been serving operators for years, but the marketing vice president reckons none has a digital mindset. "We see them talking about it but we don't see them coming up with solutions," she says.

The big question is whether more service providers will entrust a relatively small player with the job of digital transformation across the entire business.

That will require Matrixx to impress during early deployments, according to Kyriakakis. "They will give us smaller projects and say, 'Prove yourself in six months and if so we will think about evolving our entire business over time,'" she says.

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
3/9/2016 | 8:17:20 AM
The time is right...
If Mattrixx is still a private company come 2017 I'll be shocked.

 
From The Founder
The time has come for a telecom app store to save the industry.
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.
LRTV Documentaries
Order From Chaos: The Steve Saunders BCE Keynote

5|24|17   |   17:27   |   (0) comments


Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability testing.
Think of this as the video sequel to the recent columns he's written about NFV and the prospect of a telecom app store. (See

LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 80-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
LRTV Huawei Video Resource Center
The Challenges of Mobile Banking Implementation

5|12|17   |     |   (0) comments


Kamal Quadir of bKash Limited explains the challenges and needs of implementing mobile banking in the Bangladesh market.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Verizon on M&A: Who Needs a Cableco?
Mari Silbey, Senior Editor, Cable/Video, 5/17/2017
What's Blocking 4K TV Today
Alan Breznick, Cable/Video Practice Leader, Light Reading, 5/22/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
When Gig Speeds Alone Aren't Enough
Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.