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Fonality Receives $12M to Grow Open Source Communications

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September 04, 2008

Fonality Receives $12M to Grow Open Source Communications

By Michelle Robart, TMCnet Editor

Fonality (News - Alert), a provider of open source telephony and communications systems, today announced it has obtained a $12 million financing round led by venture capital firm, Draper Fisher Jurvetson Growth Fund, with participation from existing investor Intel Capital.

Fonality has driven 16 successive quarters of record growth. Creating open source Internet-based telephony and unified communications solutions, Fonality enables ground-breaking capabilities for growing enterprises, including globally-distributed operations, home-based workers and highly mobile workforces. Fonality plans to use this additional capital to continue expanding its share of the $7 billion domestic telephony market and set up shop in the $25 billion global telephony market, focusing specifically on affordability and mobility for businesses with five to 500 people per location.
"Fonality's model has always been to free people from the prison of their cubicles, and to do so affordably," stated Fonality CEO, Chris Lyman (News - Alert). "But, with the rising price of gas and the increased adoption of high quality broadband, our vision of 'your office is the world' is nearly upon us. This investment by DFJ and Intel Capital, two top-tier investment firms, gives us the freedom to further accelerate our growth and acquisition strategy."
Fonality's open source technology links all forms of business communication -- instant message, landline calling, mobile calling, chat, voicemail, customer relationship management (CRM), e-mail and more -- into one unified desktop software application. In addition, businesses can purchase Fonality phone systems at, through a global network of resellers, and by Dell (News - Alert).
In other Fonality news, the Managing Director of DFJ Growth Fund, Randy Glein, has joined Fonality's board of directors.
 According to Glein, "Fonality is the right solution at the right time. The company has developed a powerful, affordable communications platform for small and medium-sized businesses, allowing Fonality-enabled businesses to compete more effectively in the global economy.”
“Fonality combines the benefits of open source development, rich proprietary features, and professional support to help its 5,000 customers take advantage of the latest communications innovations very affordably. Fonality supports workers wherever they are and lets them communicate inside and outside their organizations with easy-to-use software available everywhere, on any device,” Glein expained.
Concentrating on building affordable, easy-to-use, and full-featured products enables Fonality to compete directly with Cisco, Microsoft, Nortel (News - Alert) and Avaya while creating an entirely new niche for affordable professional call centers for companies with five to 500 employees.
"Before Fonality, a 50-person office with a seven-person in-house sales group could never afford these technologies," said Lyman. "You could never tell your best salesperson: 'work from home or the road today and take sales calls as if you were in the office.' This used to be a $100,000 expense. Fonality's open source technology gives growing businesses a big-time presence that fits within their budgets."
Fonality has redefined the business phone system, and over 5,000 companies worldwide depend on its products for affordable, easy-to-use, Internet-powered communications. The company’s renowned IP-PBX (News - Alert) VoIP phone systems have connected more than 350,000,000 mission critical phone calls.
More than 7,000 computer consultants, vendors and resellers augment Fonality's direct sales organization. Earlier this year, the company initiated a relationship with Dell to sell Fonality products online at and via Dell telephone sales.

Michelle Robart is a contributing editor for TMCnet. To read more of Michelle's articles, please visit her columnist page.

Edited by Michelle Robart

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