How Radcom's Pricing Model Is Set to Disrupt the Market

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Jeffery111 6/28/2018 | 4:27:55 PM

the big deal I love the idea of using a fee only to use the software. It seems like it will become the best option available.

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asterfranco 4/27/2018 | 11:00:21 PM

The Power of Being Small "The problem is that Radcom, as a small and lean software vendor, can afford to operate with that model -- many vendors can't, at least in their current states. The constant pricing model seems certain to light a fire under the telecoms industry procurement process and shake things up in a very big way."

This is the reason I love Radcom

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vances 2/15/2018 | 10:12:02 PM

Transactional Licensing is a Legacy of Appliances Yes, transactional licensing is a legacy of the appliance age!

At SigScale we reject that model by dimension pricing on the bandwidth between us and our customers, not the bandwidth between their own customers. If a CSP doubles the traffic volume through a VNF instance it doesn't change our costs so it shouldn't impact our price to the CSP.

We start with a fully open source model where CAPEX can be eliminated where existing VNFs deliver all required features. The OPEX costs are priced proportionally to the use of SigScale's software engineering and support resources. There is of course a relationship to traffic volume as much higher volume likely translates to more VNF component instances (VNFCI) or more VNF instances (VNFI) raising the complexity and resulting in greater support needs. The point however is our pricing is based on the use of our resources and not relative to the amount of revenue a CSP is able to derive from the use of our software.

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microcaptechinvestor 2/14/2018 | 7:51:45 PM

Re: Multiple shots on goal Good to hear RDCM report great results, revenue up 32%, guiding for 20% growth next year as a starting point.

They announced they won a new Tier-1 multi-carrier operator (contract expected soon) and will unveil a new cloud-native "full visibility product" at MWC.

Good stuff!

Disclosure: Long shares.

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microcaptechinvestor 2/9/2018 | 2:34:59 AM

Multiple shots on goal Ray, nice piece. I learned something new I didn't know about the company in terms product extension into TAP, network packet brokering and entry into the enterprise market.

Seems like RDCM has many shots on goal to grow, and they tend to be very conservative in their messaging so I'm surprised to see this article the week before earnings. My guess is Q4 earnings will be a big coming out party for new disclosures / customers.

Disclosure: Long RDCM.

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