Masergy Acquires Broadcore in Effort to Expand Cloud Communications Services
“Monty Ferdowsi and his management team at Broadcore have built a successful company by transforming a traditional PBX services business into a next-generation cloud communications provider,” says Chris MacFarland, CEO of Masergy. “The cloud communications market opportunity is expanding rapidly, and with this transaction, we can immediately offer these cloud solutions to enterprises on a global basis.”
Masergy, an MPLS network operator that claims it championed cloud-based network visibility and control for global enterprises, recently introduced cloud-based services for managing Web-based applications and network security. Broadcore, which is now a wholly-owned subsidiary of Masergy, brings to the table global cloud communication solutions including custom integration capabilities, mobility, SIP trunking, and unified communications.
This Masergy-Broadcore pairing is just the latest combination of service providers in the cloud space. As Telesphere CEO Clark Peterson told TMCnet in an interview early this year, the cloud services space is highly fragmented and could benefit from consolidation. Of course, there’s already been a fair amount of action on this front.
In 2010, CBeyond paid $4 million for Arretta, and the same month, M5 Networks (News - Alert) invested $8 million in Geckotech. More recently, we’ve seen Earthlink acquire STS Telecom, TelePacific and snap up Telekenex, West Corp. grab Smoothstone for $120 million, and Warwick Valley Telephone get its hands on Alteva (News - Alert) for $17 million. That’s not surprising notes Telesphere’s Peterson, who says many LECs and CLECs want to get into cloud services, but don’t have the right skill sets since their traditional businesses never went past the demarcation point.
A Gigaom piece earlier this year noted that the “wave of M&A activity swelling the cloud services sector won’t stop with the software-as-a-service arena.” That piece noted that Internap’s planned $30 million purchase of Voxel “signals a land rush for cloud services, beyond SaaS (News - Alert)” that could make small but capable cloud service providers like Bluelock, Cloud Sigma, and Virtustream into attractive targets.
GFI Software will be exhibiting at the ITEXPO West 2012. To be held Oct. 2-5 at the Austin Convention Center in Austin, TX, ITEXPO (News - Alert) (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations.
Edited by Allison Boccamazzo
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