What’s Going On with the BroadSoft-Based SPs?

The acquisition of BroadSoft by Cisco Systems (CSCO) in February 2018 was a significant milestone in the telecommunications industry. As a leading provider of unified-communications-as-a-service (UCaaS), Broadsoft had been a critical enabler for service providers worldwide, offering robust solutions for voice, video, messaging, and remote collaboration.

But with the acquisition and BroadSoft’s subsequent absorption into Cisco’s extensive portfolio, the landscape for BroadSoft-based SPs has experienced substantial changes. In this article, we’ll explore how the acquisition impacted Broadsoft-based SPs and the challenges and opportunities that have emerged since the deal happened.

Quick Takeaways:

• Cisco’s acquisition of BroadSoft has significantly altered the UCaaS landscape, prompting service providers to reassess their strategies.
• Many BroadSoft-based service providers have faced challenges in adapting to Cisco’s integration, including concerns over product support and innovation.
• The rise of alternative UCaaS platforms like Microsoft Teams and Zoom has intensified competition, offering more flexible and user-friendly solutions.
• Service providers now have a timely opportunity to explore alternative platforms that offer greater flexibility, cost efficiency, and customer-centric features.
• Intermedia presents a strong alternative for service providers seeking customizable, innovative, and customer-focused UCaaS solutions.

Background on BroadSoft and the Cisco Acquisition

BroadSoft, founded in 1998, quickly established itself as a pioneer in the VoIP (Voice over Internet Protocol) and UCaaS markets. Its cloud-based communications platforms empowered service providers to deliver a range of services, including hosted PBX, SIP trunking, and contact center solutions, to business customers.

By the time of its acquisition, BroadSoft had a dominant presence in the market, with solutions deployed by over 500 service providers, serving millions of users globally. Cisco’s acquisition of BroadSoft for a staggering $1.9 billion was driven by a strategic need to bolster its collaboration portfolio and strengthen its position in the rapidly growing cloud communications market.

Cisco, already a giant in the world of networking and enterprise communications, saw the acquisition as an opportunity to integrate BroadSoft’s technology with its existing collaboration products, such as Cisco Webex and Cisco Unified Communications Manager (UCM).

The move was intended to create a comprehensive, end-to-end solution that could compete more effectively against other major players in the UCaaS space, such as Microsoft Teams and Zoom. Broadsoft filled a critical gap in Cisco’s service provider cloud portfolio.

Initially, the acquisition was met with mixed reactions from the industry. Some saw it as a natural evolution for BroadSoft, while others were concerned about the potential disruption it would cause to existing SP relationships and the uncertainty regarding product continuity.

 For many SPs, BroadSoft had been a reliable partner, and the fear of being subsumed into the vast Cisco machine led to anxiety about the future.

The Transition Phase for BroadSoft-Based SPs

The period following the acquisition was marked by significant transition challenges for BroadSoft-based SPs. Cisco’s integration strategy involved aligning BroadSoft’s offerings with its broader collaboration portfolio, which required SPs to adapt to new business models and technology stacks. This transition was not without its difficulties.

One of the primary challenges was the uncertainty surrounding product support and development. SPs had invested heavily in BroadSoft’s platforms, and the prospect of these platforms being phased out or merged with Cisco’s existing solutions created a sense of unease.

Additionally, SPs were concerned about the potential loss of the agility and customer-focused innovation that had characterized BroadSoft’s approach. Cisco, known for its enterprise-grade solutions, operates on a different scale and with different priorities, which some SPs feared could lead to a dilution of the niche expertise that BroadSoft had provided.

Moreover, market dynamics shifted as competitors sensed the timely opportunity to capture dissatisfied BroadSoft customers. Alternative UCaaS and VoIP providers intensified efforts to attract SPs by offering flexible, cloud-native solutions that promised to be more adaptable and responsive than those provided by Cisco. The pressure on SPs to evaluate their options and potentially transition to new platforms was immense.

SPs adopted varied strategies in response. Some decided to stick within the Cisco-BroadSoft ecosystem, betting on Cisco’s long-term vision and the benefits of an integrated solution. Others began exploring alternative platforms, seeking more control over their service offerings and a closer alignment with their customers’ evolving needs. This period of reassessment and realignment was crucial in shaping the current landscape of BroadSoft-based SPs.

Current Status of BroadSoft-Based SPs

Several years after the acquisition, the situation for BroadSoft-based SPs has stabilized, though the landscape remains dynamic. Many SPs that chose to stay within the Cisco ecosystem have successfully integrated Cisco’s broader offerings into their service portfolios.

Cisco has made considerable efforts to support these SPs by providing resources, training, and product roadmaps that align with their business goals.

For instance, the integration of BroadSoft technology into Cisco’s Webex platform has allowed SPs to offer a more comprehensive suite of communication and collaboration tools. This integration has been particularly beneficial for SPs serving large enterprise customers who demand seamless, end-to-end solutions that encompass voice, video, messaging, and file sharing.

However, challenges remain. The UCaaS market has become increasingly fragmented, with new entrants offering innovative, cloud-native solutions that appeal to a broader range of businesses. SPs reliant on legacy BroadSoft systems have had to navigate the complexities of maintaining these systems while also adapting to the growing demand for more flexible, cloud-based services.

Additionally, the pace of innovation within Cisco’s portfolio has been a double-edged sword. While it offers SPs new capabilities, it also requires continuous investment in training and infrastructure upgrades to keep pace.

Industry Impact and Future Outlook

There’s no doubt that Cisco’s acquisition of Broadsoft had a profound impact on the UCaaS and VoIP markets that’s still playing out today. While their integration of Broadsoft no doubt added strength to its position as an enterprise communications provider, the larger market has seen significant shifts with which Cisco hasn’t fully kept up.

The rise of alternative UCaaS platforms—Microsoft Teams, Zoom, and RingCentral to name a few—has introduced new competitive pressures. These platforms, characterized by cloud-native architectures and user-friendly interfaces, have appealed to businesses of all sizes, from SMBs to large corporations.

Why SPs Are Considering Alternative Solutions

As the UCaaS market continues to evolve, many SPs are finding themselves at a crossroads. For many, now is a smart time for formerly Broadsoft-based SPs who are no longer feeling fully aligned with their UCaaS solutions to consider alternative providers that offer greater flexibility, lower costs, and a more customer-centric approach. 

Considering alternative UCaaS providers could offer several key benefits:

• Greater Flexibility: Many alternative providers offer more customizable solutions than Cisco’s, allowing SPs to tailor their services to better meet the unique needs of their customers. This can be crucial in a market where one-size-fits-all solutions are increasingly less effective.
• Cost Efficiency: By exploring other options, SPs might find providers that offer more competitive pricing models, enabling them to maintain or improve their margins while delivering high-quality services.
• Enhanced Customer Focus: Providers like Intermedia emphasize a customer-centric approach, ensuring that their solutions are not only technologically advanced but also aligned with the specific needs and expectations of the end-users. This can translate into higher customer satisfaction and loyalty.
• Innovative Features: The pace of innovation in the UCaaS space is rapid, and alternative providers with UCaaS-specific expertise often excel in integrating the latest technologies into their offerings.

Elevate Your UCaaS Offerings with Intermedia

Intermedia is an industry-leading cloud communications company that helps over 140,000 businesses connect better—from wherever—through our AI-powered platform that includes voice, video conferencing, chat, SMS, contact center, business email and productivity, file sharing and backup, security, archiving, and more.

Our comprehensive UCaaS solutions help SPs  stay better informed, connected, and productive in today’s fast-changing world of enterprise communications.

Get in touch with our team to explore how we can help you transform.

Melinda Curtis

Melinda Curtis is a Director of Product Marketing at Intermedia, where she focuses on helping businesses improve employee productivity and enhance their customer experiences using Intermedia's award-winning cloud communications solutions. Melinda brings over 20 years of experience in telecommunications, having worked in B2C and B2B marketing, product management, and vendor management roles. In her free time, she loves to travel with her family.