Companies that big have a rule, if it isn't a $100M in revenue quick, it
gets killed.
Quarterly revenue is $60B!
A $100M product is a 0.17% of revenue.
Metaswitch's 2019 financial report shows annual revenue of $180 million.
Selling telco gear isn't a billion dollar business.
Revenue in Productivity and Business Processes was $20.3 billion and
increased 11% (up 12% in constant currency), with the following business
highlights:
·Office Commercial products and cloud services revenue increased 12% (up
13% in constant currency) driven by Office 365 Commercial revenue growth
of 13% (up 14% in constant currency)
·Office Consumer products and cloud services revenue increased 3% (up 4%
in constant currency) and Microsoft 365 Consumer subscribers grew to
82.5million
·LinkedIn revenue increased 10% (up 9% in constant currency)
·Dynamics products and cloud services revenue increased 16% driven by
Dynamics 365 revenue growth of 19% (up 20% in constant currency)
Revenue in Intelligent Cloud was $28.5 billion and increased 19% (up 20%
in constant currency), with the following business highlights:
·Server products and cloud services revenue increased 21% (up 22% in
constant currency) driven by Azure and other cloud services revenue
growth of 29% (up 30% in constant currency)
Revenue in More Personal Computing was $15.9 billion and increased 14%
(up 15% in constant currency), with the following business highlights:
·Windows revenue increased 7% (up 8% in constant currency) with Windows
OEM revenue growth of 4% and Windows Commercial products and cloud
services revenue growth of 11% (up 12% in constant currency)
·Devices revenue decreased 11% (down 9% in constant currency)
·Xbox content and services revenue increased 61% driven by 58 points of
net impact from the Activision acquisition
·Search and news advertising revenue excluding traffic acquisition costs
increased 19%
Microsoft returned $8.4 billion to shareholders in the form of share
repurchases and dividends in the fourth quarter of fiscal year 2024.
On 8/14/2024 6:05 PM, Jeff Brower wrote:
Peter-
What I think you're saying is that Microsoft acquired Metaswitch
because of their cloud native communications technology, and they
still like that, but are now shedding the physical equipment part of
the business.
That makes business sense for Microsoft Sr management, but there is
revenue in non-Azure edge communications and AI, maybe not M$ level of
multiple billions, but substantial and growing. Retail surveillance,
robotics in factories, automated vehicles, etc need communications and
inference specifically not in the cloud -- cheap, instant response,
100% fail-safe reliable, and private. I find it hard to see Metaswitch
guys who spent 25+ years building a successful combined hardware +
software business, who were very good at it and for whom AI is a
natural fit with their signal processing and HPC background, watching
it and their customer base disappear. But as you say, maybe they are
happy with it.
-Jeff
Quoting Peter Rad via VoiceOps <voiceops@voiceops.org>:
That's not happening. The Metaswitch employees I know that are left
are happy taking marching orders from M$.
The problem the softswitch industry had was that the pie was stable.
It wasn't growing, so you weren't selling new logos. You were just
supporting customers - and that isn't a growth business nor is it a
profitable business.
The problem is that of the 900 operators using Metaswitch in the US,
most are mom and pop and rural. That doesn't convert to "Going Azure."
These mom-and-pop's will have to make due with what they have for the
next 5 years - and use that 5 years as a runway for an exit strategy.
The largest Metaswitch white-label provider just went to CXDO, so the
writing on the wall that I have been seeing for 2 years, others are
now seeing.
Regards,
Peter @ RAD-INFO
On 8/13/2024 3:54 PM, Jeff Brower via VoiceOps wrote:
Not sure about Affirmed, but I know some of the original MetaSwitch
guys, and a few still at Microsoft. They were, and I suspect still
are, extremely dedicated and capable. My guess is they will find a way
to spin out / buy out MetaSwitch in some form it will continue.
-Jeff
Quoting Jawaid Bazyar via VoiceOps <voiceops@voiceops.org>:
I have a use case. The use case is, be in a position to take
customers tomorrow on a 5/9's platform.
One alternative is Ribbon: that solution is out of my price range,
and, likely out of price range of every rural ILEC I know.
A second is Squire, but, I'm not willing to risk it w/o getting my
hands on a long-term trial which was requested but not offered.
The final alternative is to throw into developing one, likely in two
phases. The orchestration and front end of the Elephant Talk project
is complete, now just need to settle on a production backend.
On Tue, Aug 13, 2024 at 3:33 PM Alex Balashov via VoiceOps
<voiceops@voiceops.org> wrote:
I suppose this all raises the question of why on earth you'd want
to acquire a Metaswitch, but you've clearly got an angle.
-- Alex
> On Aug 13, 2024, at 3:20 PM, Jawaid Bazyar via VoiceOps
<voiceops@voiceops.org> wrote:
>
> "Microsoft's end game is for every operator to have a big pipe
to Azure to access Metaswitch, vSBC, Teams and other components."
>
> My question is, can you actually run a MetaSwitch CFS in Azure?
Because to my knowledge, you cannot.
>
> I would be very interested if I was wrong about this.
>
> Jawaid
>
>
> On Tue, Aug 13, 2024 at 12:56 PM Peter Rad via VoiceOps
<voiceops@voiceops.org> wrote:
> Besides getting rid of their Max UC softphone (to make MS Teams
THEE softphone), they did EOL a lot of the Meta product.
>
> We - RAD-INFO, ECG and Andrew Ward - did a webinar about it in
May. You can watch the recording here:
https://info.ecg.co/webinar-recording-broadworks-metaswitch-netsapiens-ribbon
>
> Microsoft's end game is for every operator to have a big pipe
to Azure to access Metaswitch, vSBC, Teams and other components.
>
>
> Let me know if there is anything I can do for you. Thank you.
>
> Regards,
>
> Peter Radizeski
> RAD-INFO INC
> Telecom Consultant
> Bandwidth * Voice * Cloud * Data Center * Internet * CyberSecurity
> (813) 963-5884
>
>
>
> On 8/13/2024 8:41 AM, Mike Hammett via VoiceOps wrote:
>> "Given the MetaSwitch products are no longer sold, and
Microsoft is EOLing them, and not taking new support contracts..."
>>
>>
>> That's news to me.
>>
>>
>>
>> -----
>> Mike Hammett
>> Intelligent Computing Solutions
>> http://www.ics-il.com
>>
>>
>>
>> Midwest Internet Exchange
>> http://www.midwest-ix.com
>>
>>
>>
>> From: "Jawaid Bazyar via VoiceOps" <voiceops@voiceops.org>
>> To: "voiceops" <voiceops@voiceops.org>
>> Sent: Tuesday, August 13, 2024 7:23:05 AM
>> Subject: [VoiceOps] Acquire MetaSwitch
>>
>> Hello,
>>
>> We are in the market to acquire / take over a MetaSwitch CFS.
In particular, we're looking for the virtual edition that runs
purely in VMWare.
>>
>> The components we'd need are:
>> CFS
>> MRS (Media Resource Server)
>> Perimeta
>> SAS (Service Assurance Server)
>> MetaView Server
>>
>> These are fairly common components.
>>
>> Given the MetaSwitch products are no longer sold, and
Microsoft is EOLing them, and not taking new support contracts,
we're not talking about a big cash up front kind of deal, but,
instead a revenue share kind of arrangement.
>>
>> Anyone that has one and is interested, contact me directly
off-list.
>>
>> Cheers,
>>
>> Jawaid
>>
>>
>> _______________________________________________
>> VoiceOps mailing list
>> VoiceOps@voiceops.org
>> https://puck.nether.net/mailman/listinfo/voiceops
>>
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--
Alex Balashov
Principal Consultant
Evariste Systems LLC
Web: https://evaristesys.com
Tel: +1-706-510-6800
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