Megisto Denies Brain Drain

Revamped startup Megisto Systems Inc. is playing down industry concern over its recent change in product strategy, refuting suggestions it is struggling to keep up headcount.

Founded in mid 2000 as one of the early movers in the wireless router, or GGSN (GPRS Gateway Support Node), space, the vendor claims to have moved out of the market in an effort to distance itself from similar failed ventures (see Alcatel Swallows WaterCove and Nokia Sweeps Up Tahoe).

Earlier this month the company told Unstrung it is now focused on providing infrastructure for “value-added services, specifically in prepaid, content charging and service packaging.” A carrier win is expected to be revealed in the next two weeks (see Megisto Breaks Silence).

Despite this imminent announcement, the turnaround has prompted some industry cynics to suggest that the change in product strategy is a case of too little, too late, with one mischievous Unstrung reader claiming that Megisto’s chief European honcho, John Williams, is set to leave the company (read the posting here).

Carol Politi, VP of marketing, is unable to comment on the specific role of Mr Williams. “Our employment agreements legally prevent me from giving out any information regarding employment status,” she explains.

Politi does, however, stress that the vendor is actually in the process of ramping up its sales efforts in a bid to finally make headway in the carrier market. “We have staffed up on the sales side in the last year... In line with this new strategy we have brought on board several new hires, including in the EMEA region a new sales director.”

Current headcount stands at 65, down from “just over 90 at the peak of our product development.” Politi claims that staff numbers are set to grow this year. “We will continue to staff up on the sales side, because we are in a stable state from a product development standpoint. We still have a couple of opportunities open on the sales side and are hiring there.”

The company also appears to have a grasp on the true size of the challenge that lies ahead. “This is hard stuff,” opines president and CEO, Gordon Saussy. “Redefining an organization to the core, changing the way it does business, how it does business and what its focus is -- this is tough. It is understandable that the folks at WaterCove and Tahoe never went through it.”

— Justin Springham, Senior Editor, Europe, Unstrung

or_tech 12/5/2012 | 2:26:56 AM
re: Megisto Denies Brain Drain It is very intresting to see that Megisto (as Proquent before) changed its messaging to be virtually identical to that of P-Cube which has always focused on this aspects (they have always positioned themselves as a 'transparent overlay over any access').

I guess going head-to-head with a competing platform to the incumbents is not a solid strategy for a startup, and all those startup that started off like that have either disappeared (Tahoe, WaterCove) or are now trying to change.

It looks like this is the right way to go for Megisto, but it also might be too late... P-Cube seems to have had significant success lately: They have teamed with UTStarcom, claim deployments in prominent wireless carriers already, and by working with this philosophy from the start probably have a more mature product line.

Even more interesting, is that P-Cube has been able to focus its energy on creating a "Service Control" value proposition for different access markets (their site claims cable, isp & Wireless customers) so their target market is much larger
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