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Megisto Sells Up

Light Reading
LR Mobile News Analysis
Light Reading
7/1/2005

Data services platform startup Megisto Systems Inc. is believed to have sold its assets to Interactive Technology Holdings Ltd. (ITHL), a Hong-Kong based vendor with which it had previously struck a reseller partnership (see Megisto Gets Asian Reseller).

“Megisto this week concluded a transaction, selling its product and all its customers to another company,” writes Megisto CEO Gordon Saussy in an email note to Unstrung. “A number of our employees have also joined that company to continue development on the product. The transition on the Website is a first step towards defining the new public face of what has been Megisto, and the product is going to be a serious factor in the market for quite some time to come.”

Saussy was unable to disclose the identity of the buyer, but several sources tell Unstrung that a deal worth around $1 million has been struck with ITHL. The Hong Kong vendor was not available for comment at press time.

“I’m very happy that the product and team are going forward, supporting our existing customers and winning new ones, and wish them tremendous success,” adds Saussy.

Megisto scored around $60 million in VC funding and announced deals at Maxis Communications Bhd., Meteor Mobile Communications Ltd., and StarHub Pte. Ltd. (see Megisto Flickers in Europe, Megisto Maxes Up, and Megisto Gleams at StarHub).

Rumors that the vendor was struggling to stay alive were rife for several weeks, and the company has never been too far from speculation surrounding its health (see Wireless Scuttlebutt, Megisto Defends Maxis Win, and Megisto Denies Brain Drain). In 2003 Megisto underwent a major shift in market focus, providing infrastructure for “value-added services, specifically in prepaid, content charging, and service packaging,” rather than attempting to tackle incumbent vendors in the GGSN (GPRS Gateway Support Node) and PDSN (Packet Data Serving Node) markets (see Megisto Breaks Silence).

— Justin Springham, Senior Editor, Europe, Unstrung

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lrmobile_boondocksbandit
lrmobile_boondocksbandit
12/5/2012 | 3:08:47 AM
re: Megisto Sells Up
The first one you refer to is spelt as Cambia. Also, don't forget Tahoe Networks
doodah
doodah
12/5/2012 | 3:08:47 AM
re: Megisto Sells Up
Discounting asset sales as a success, our GGSN PDSN startup scorecard is:

Candia Failed / DOA (is that the right name?)
Megisto Failed / Asset sale
Proquet Failed / Asset sale
Watercove Failed / Asset sale
Starent Going strong, expected to do ok

Probable success rate = 17%

That's a helluva lotta VC money down the drain for a market that has failed to develop.

Note that I have discounted incumbent solutions from Cisco, Nortel (Shasta), Huawei, UT Startcom, Lucent, Ericsson, though we may want to count the acquisition by Nokia of (I forget the name) as a failure since that product was killed off.

Doo Dah
MicrowavedBrain
MicrowavedBrain
12/5/2012 | 3:08:46 AM
re: Megisto Sells Up
Yep, Tahoe was the one he couldn't remember.

Why did this market not materialize?

Was it because GPRS was an overhyped flop and the big vendors had enough time to build their own?
Or was it that converged billing vendors found other ways to extract relevant billing info?

We normally have engineers posting excellent technical arguments on the boards, but can anyone provide some high level business analysis of what didn't happen as expected in this market?
w2csan
w2csan
12/5/2012 | 3:08:40 AM
re: Megisto Sells Up
This market did materialize and Cisco grabbed it!

Most of the converged billing solutions deployed by tier 1 wireless operators are handled by Cisco's CMX product line, specifically the Service Selection (SSG) and Content Services gateways (CSG) both of which are fully supported by Openet's FusionWorks and ActiveCharge to enable real-time charging for post-paid and pre-paid converged billing.

If you would like details on how operators are using the CMX solution check out the solutions guide on Cisco's CMX site:

http://www.cisco.com/en/US/net...

and Openet's White Paper on "CSG ActiveCharge Integration" available for download at:

http://www.openet.com/inf_coll...
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