Investing in Cloud: Digium Cloud Services and the Growing UCaaS Market

By Danny Windham

As of September 1, 2013, Digium finalized the acquisition of Atlanta-based VocalCloud and has launched Digium Cloud Services, a wholly owned subsidiary of Digium, Inc.

That’s the headline many of you have seen this week; but the news marks the culmination of efforts that have been in development for more than a year and signifies a major development in the evolution of our company. The acquisition of a hosted VoIP services provider and the launch of Digium Cloud Services is only the beginning of a bigger story. It is part of a strategy to position Digium as a leading supplier of cloud-based communications services.

Current market research indicates that companies of all sizes are increasingly turning to cloud-based solutions because they provide much needed flexibility and cost savings. In fact, some analysts have indicated that public cloud offerings are among the fastest growing segments in the Unified Communications as a Service (UCaaS) market.

We found this growing affinity toward cloud-based services to be true within our customer base while testing the waters with our own UCaaS offering. Delivered in partnership with VocalCloud, Switchvox Cloud launched last March. It allowed us to gauge the possibilities provided by a hosted version of our award-winning Switchvox phone system. The results were very encouraging – which in turn led to our acquisition of VocalCloud and the subsequent formation of Digium Cloud Services.

Delivering Switchvox in a cloud-based model is certainly the prime motivation for this acquisition. This move not only provides the expertise and infrastructure for delivering cloud-based services, it also allows us to enter the market much faster than an internal development.

All that said, the future strategy for Digium Cloud Services includes much more than just Switchvox Cloud.  We envision new products and services targeted to the SMB customer; but we also foresee offerings that we believe will appeal to our Asterisk open source user base.  After all, Digium is in the unique position of being able to service both commercial and open source audiences; and we believe that Digium Cloud Services opens the door to some very exciting opportunities for our customers, channel partners, and the Asterisk community. Stay turned for coming announcements, but know that the future of Digium Cloud Services is much broader than a single service offering.  I look forward to sharing more about these types of products and services, soon.

For now, I hope that you will join us in celebrating.

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About the Author

Danny Windham

Danny Windham joined Digium in February, 2007 as CEO. In this role, Windham was responsible for setting corporate strategy and executing day to day business operations.Prior to joining Digium, Windham served as president and chief operating officer of ADTRAN, a global provider of networking and communications equipment. Windham joined ADTRAN in 1989 following ADTRAN's successful acquisition of Processing Telecom Technologies, a company Windham co-founded in 1986. Prior to becoming president/COO in 2005, Windham served as the senior vice president and general manager of the Enterprise Networks Division.Windham holds a Bachelor of Science degree in Electrical Engineering from Mississippi State University where he was named a Distinguished Engineering Fellow in 2001 and also holds an MBA from Florida Tech.

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