Metaswitch, an advanced carrier services provider of technologies and solutions that power the migration of communications networks to open, next-generation architecture, has a lot to be proud of looking back on its accomplishments in 2010, and a lot to look forward to in the upcoming year of 2011.

TMCnet recently had the opportunity to interview Kevin DeNuccio (News - Alert), CEO at Metaswitch Networks regarding the company’s accomplishments and future projections. Below is the interview in its entirety.

How did Metaswitch perform as a whole in 2010?

Last year was one of significant growth for us, particularly in North America and several other key international markets. In fact growth was up 18 per cent on the previous year. But we also exceeded expectations in other ways.  We successfully continued to expand into the CALA region with customer wins such as Telecom Argentina and Columbus Networks, as well as deployments in regional markets with TDS Telecom, SureWest Communications, and Cincinnati Bell (News - Alert) and leading MSOs, including Knology; bringing the total number of new carrier customers to over 65 during the year.

I also moved from the Metaswitch Board of Directors to become the new head of the company in February of last year. I could see that Metaswitch has an extraordinary combination of talent and technology – traditional telephony and exciting new mobile, IP-based applications – that could fill the innovation gap in the industry and propel the company into the ranks of the major vendors worldwide. So, when the opportunity arose to help drive that strategy from the inside, I jumped at it.

Two months later we were among just a few companies in the UK to be awarded the Queen’s award for enterprise, specifically for our innovations and the commercial success of our MetaSphere application server, bringing our tally to four Queen’s awards in the 29 years of our history. In addition, we had our most successful Forum event ever in September, with over 800 customers, partners and guests spending three days deep-diving into all aspects of the telecom industry. Delegates also viewed a live link to the E/V Nautilus in the Aegean Sea with keynote Dr. Robert Ballard, famed oceanographer.

Finally, but certainly not least, we also managed the successful purchase and integration of leading Service Broker solutions provider App Trigger Inc., after acquiring the company in March.

Did the company’s results meet expectations for the year?

Last year’s results achieved our goals and more. Our unaudited results for the 2009/2010 financial year to Aug 31 show that revenue grew from $113.7 million to $134.5 million, or 18 per cent growth, with pro-forma EBITDA margins sustained at 20 per cent. This was achieved in tough economic conditions across the globe, where service providers have had to persuade residential and enterprise customers of the benefits of added services when both businesses and families have the same goal: namely, trying to protect their income.

What would you say was the biggest announcement Metaswitch made this year?

Without a doubt, I would say that the most significant development was the acquisition of App Trigger. I’m not sure whether the full significance of the acquisition has yet been widely absorbed; Service Broker technology is going to fundamentally alter Telcos’ trepidation and concerns about the cost and feasibility of service migration.

Is there a solution Metaswitch is particularly proud of in 2010?

Enhancing our carrier solution portfolio through the acquisition of App Trigger is something we are really proud of. The Service Broker resides between the application layer and the core network to provide interworking and managed connectivity to the evolving network.

Over the years, operators have invested millions if not billions in their legacy infrastructure. Migration consumes companies’ profits and can lead to debt situations. Service Broker technology enables the migration of new technology onto legacy systems and older services onto newer systems without tearing down the existing structure.

Metaswitch also supports the Service Broker Forum, a multi-vendor association which evangelizes and educates the telecommunications industry on the Service Broker product category through the sharing of ideas, opinions, and knowledge.

How do Metaswitch solutions stand apart from competitors in the market?

Our broad range of telephony application server and switching products are for service providers building out next generation voice networks, modernizing legacy voice networks, or deploying new voice applications. The solutions are unique in the breadth of their capabilities. They span a provider’s legacy services and connectivity, as well as high-value services that attract and retain subscribers.

One of the main differences between us and our competitors is that our customer base is very broad – from wireline, mobile and MSO operators, to software vendors and equipment manufacturers and large enterprises, to the Military and Government. We also enable developers to reach carriers with new applications with our Innovators Community.

Our products offer modularity and scalability to suit networks from a few thousand to many millions of lines. To achieve all this we have for many years now made a conscious decision to employ only the brightest and the best. This means rigorous and incisive recruitment of only the best graduates and well-regarded industry veterans, coupled with a massive investment in all our employees. The result is the creation of a 600-strong company with focus and steadfast commitment to long-term customer relations. We do not just support products, but ensure they succeed, thereby distinguishing ourselves significantly from our competitors.

Metaswitch had a successful financial year in 2010, how does the company plan to continue this financial success in the new year?

We’re recognized as the number one vendor of Class 5 replacement solutions in the US. That’s a hard won badge of honor that required some intensive R&D and a commitment to customer support that’s unrivaled in the industry. Obviously we intend to build on this customer base of well over 400 US service providers and to help them navigate this ever-changing competitive and regulatory landscape. Beyond that, we’re committed to being more “global and mobile” – you’ll see us for the first time at Mobile World Congress (News - Alert), delivering solutions to mobile operators that truly meet their requirements – rather than just trying to repurpose wireline products. We have continued to invest heavily in R&D, around the world, to fuel this activity, internationalizing our product portfolio while also innovating in areas that show a real commitment to pushing Metaswitch into new areas for sustained growth. Stay tuned – we’re probably the only 30 year old company that is truly upwardly mobile!

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Stefanie Mosca is a Web editor for TMCnet. Previously she worked as a freelance copy editor for Digital Surgeons LLC. She holds a master's degree in journalism from Quinnipiac University and a bachelor's degree in communication from the University of New Haven. To read more of her articles, please visit her columnist page.

Edited by Stefanie Mosca