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More on the ShoreTel, Agito Deal

TMCnews Featured Article


October 22, 2010

More on the ShoreTel, Agito Deal

By Paula Bernier, Executive Editor, TMC


Editor’s Note: The following content was recently posted on TMCnet Contributor, Paula Bernier’s (News - Alert), TMCnet blog.

A girl can't even take some time off these days without missing news of an acquisition. While I was enjoying some R&R yesterday in the dentist's chair, ShoreTel (News - Alert) revealed its plans to buy Agito.


For $11.4 million ShoreTel gets an enterprise mobility platform that will enable users to communicate on any device at any location and using any network.

Bringing mobility into the fold is important for companies like ShoreTel given smartphones, laptops and, increasingly, tablets are becoming the key tools employed by business users. With the Agito acquisition in its pocket, ShoreTel will be able to provide PBX functionality on a variety of popular wireless endpoints including the BlackBerry, iPhone (News - Alert), iPad, and Nokia and Windows Mobile smartphones.

As discussed in the October issue of Unified Communications Magazine, which should post on TMCnet by the end of this month, Synergy (News - Alert) Research's latest data reported in the quarter shows ShoreTel grew market share once again in the June quarter to 8.2 percent in the U.S. pure IP market and 5.6 percent of the U.S. IP telephony market. ShoreTel sold approximately 96,000 end user licenses in the quarter, with more than 800 new customers added in that period.

The company is making gains both in the U.S. and abroad by going up market, and winning more and larger contracts.

ShoreTel started out selling to small businesses, but now also has medium and large enterprise users. The target is opportunities involving between 20 and 10,000 users. It recently sold it first contact center in EMEA in excess of 1,000 lines.

International now represents 10 percent of ShoreTel's business, and that's growing. The company has seen the best success in Australia and Europe. As part of its most recently reported quarterly financials ShoreTel revealed it had record high international revenues of $5 million - about 12 percent of four quarter total revenues. That represents a 130 percent year-over-year increase.

ShoreTel wins and retains customers by delivering what Gavin says are simple and straightforward solutions to their unified communications problems.

"The whole notion of brilliant simplicity is what we focus on," he says.




Edited by Jaclyn Allard







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