The popularity of relying on third party vendors to provide access to next generation technologies is driving the demand for cloud solutions. This is especially true for businesses seeking ways to reduce the cost of staying in touch. As such, the opportunity is ripe for business VoIP providers wanting to drive new revenue streams and secure profitable opportunities.
One such provider making the most of the demand in the industry at large is RingCentral (News - Alert). The company recently went public and is expected to report their quarterly earnings Tuesday evening. Before the arrival of these results, Jeff Kagan, a tech analyst, offered his insight on the company.
“If RingCentral handles this correctly, they could grow into one of the leaders in the new world of VoIP. There are plenty of smaller and larger competitors in the same space. So success is not a forgone conclusion by any stretch of the imagination. But VoIP is still young and is still growing rapidly and lot’s of change is ahead. So the future potential is there, if they can make the right moves going forward,” said Principal Analyst Kagan, in a statement.
As one of the newer competitors in the business VoIP providers’ space, RingCentral offers telephone service over the Internet instead of delivering it through the traditional telephone network. The company has been competing in telecommunications since 1999 and with successful growth, they have also changed their focus. Communications via VoIP is where the company has found solid footing.
The provider effectively competes with others in the VoIP space, whether it’s smaller companies without a strong brand presence or the larger behemoths like AT&T, Verizon and CenturyLink. RingCentral is also trying to take share from cable television providers like Time Warner, Cox and Comcast (News - Alert). According to Kagan, however, the ease of use and management of the RingCentral solution may give it a leg up on the competition.
For the smaller business, RingCentral offers a powerful solution in that it can scale up or down according to the needs of the business. It also extends advanced IP-PBX (News - Alert) features, enabling users to have remote control for optimal management, quality support and a number of critical calling features. The company currently supports 300,000 business customers.
Is this enough to attract investors? The demand for solutions offered by business VoIP providers is growing and the market is projected to reach record highs through to 2017. If RingCentral can deliver on the expectations of the customer base and outperform the competition, they just may be a safe bet.
Edited by Blaise McNamee