RingCentral has seen its Microsoft Teams business rocket 500 percent, according to CEO Vlad Schmunis.

The vendor’s senior team spoke on an earnings call with investors after announcing quarterly sales growth of 33 percent year on year in Q1, up to $468m.

RingCentral did not report actual revenue figures for its Teams business, but Schmunis said the vendor could reveal the size at a later date.

“We will eventually be disclosing the number, but for competitive reasons, let’s just say this is one of our stronger growth drivers at this point,” he said.

“And what we set out to do was simply provide the world’s best Teams integration, which, at this point, we already have between direct routing and embedded dialer.

“We really are the only sizable vendor to support both. That opens up a tremendous amount of opportunities for us.”

RingCentral COO Mo Katibeh said that the vendor sees opportunities with enterprises on Microsoft’s E1 and E3 licences, which do not include telephony services.

Microsoft’s E5 licence does include some telephony services, but Katibeh said these are not enough for large enterprises that are heavily dependent on voice.

“The large majority of Teams customers are on E1 or E3 licenses, which do not include phone or telephony service – a key part of any business identity,” he said.

“This creates an immediate opportunity to complete the cloud communication suite by adding a well-integrated UCaaS solution like RingCentral.

“As to the minority of Teams customers who have an E5 license, they still require an incremental calling plan to make calls outside of their company. Even more importantly, they often need a richer feature set, five 9s reliability, integrated contact centre options, larger geographical footprint, all things that RingCentral can offer.”

Partner Growth

 RingCentral said it has seen growth in the business flowing from both its channel partners and vendor partners, including Avaya, Alcatel-Lucent Enterprise, and Atos.

These relationships contributed to pipeline growth of almost 50 percent year on year in the quarter.

Katibeh said that RingCentral’s partnership with Mitel is “ramping materially faster than originally expected”, while business with Avaya was up 30 percent year on year.

The vendor is focusing on expanding beyond North America, with just 10 percent of its sales coming internationally. He added that a new wholesale distribution model in Europe will complement this strategy.

 



from UC Today https://ift.tt/0kMxFW8