skip to Main Content

Digium Receives $13.2 Million In Venture Funding

Digium, the creators of Asterisk the open source PBX, announced today that they have receieved $13.2 Million in venture captial from Matrix Partners of Boston, MA.

Although Digium would not disclose any revenue figures, they did disclose that they have been profitable since 2002, and have seen 100% revenue growth year over year since. Although no revenue is generated from the download of the Asterisk software, I can tell you that their Digium hardware sells like hot cakes and is certainly the main driver of their business right now.

I am curious to see what they do with the funds. Anyone have any thoughts on what Digium might do with $13.2 Million?

Smith’s VoIP Week in Review

This is the first installment of the VoIP Week in Review, a segment that will become a weekly feature here at Smith On VoIP. Here are some of the biggest stories in the industry this week:

Check back next Friday for the next installment of Smith’s VoIP Week in Review.

Death of a VoIP Equipment Vendor?

I am surprsied that I did not catch this one sooner (guess I should start reading Greg Galitzine’s blog with increased frequency). It lookes like IP PBX systems vendor Zultys has ceased operations and let go of most of the company’s 200+ employees. According to Zultys founder and CEO, Ian Miles, the company has simple ran out of money and can not find additional funding at this time.

This is unfortunate news. Prior to this, Zultys was a highly touted IP PBX systems vendor, with a top notch product line. It is difficult to imagine,  VC’s not wanting to fund a company with as much media and press coverage (they were featured almost monthly in magazines such as Business 2.0, Inc., and Entrepreneur) in addition to the all of the industry awards they have won. I guess this is an example of live by the VC, die by the VC?

Could we be seeing the beginning of a VoIP industry bubble burst?

Grandstream BudgeTone 200 (GS-200) Coming Soon!

It looks like Grandstream Networks is set to unveil it’s fourth IP phone under $100 this week. The Grandstream BudgeTone 200 or GS-200 is set to hit the streets at a list price of $89.

The Grandstream BudgeTone 200 features dual RJ45 Ports for LAN/WAN switching or routing and a full duplex speakerphone. This IP Phone will definitely be a hot seller when it hits the shelves. I wonder if the huge product marketing budgets of Grandstream larger competitors is the reason that none of the major players (Linksys, DLink) has been able to break into the sub $100 price range.

Although they will never win a beauty contest, Grandstream phones offer tremendous value for SOHO and SMB consumers. Click Here to get yours today!

EarthLink and Covad Team to Offer Residential IP Centrex

EarthLink has teamed with Covad to offer VoIP service through EarthLink’s new DSL service. What is interesting about the offering is that it does not require any additional hardware.

Unlike other VoIP services, including the one EarthLink currently sells for $20 a month, the new service doesn’t require consumers to add hardware. Customers can use their existing phones and plug them into phone jacks as they would with any regular telephone service. The technology, called “line-powered voice,” puts all the intelligence and equipment for offering VoIP service in Covad’s central office, where all the gear to provide the DSL service is housed.

Remember that you heard the term “Residential IP Centrex” hear first. This offering is hot. I have been stating for some time that many VoIP providers are missing the boat when marketing VoIP services. By adding ATA’s, IP Phones, Soft Phones, etc VoIP Service Providers made the customer experience foreign, and for those who are not techies or geeks, intimidating. I believe this offering from Earthlink will result in a customer experience that is much easier to swallow for the “second round” of VoIP adoptors. This, in turn, will result in a higher activation and conversion rate for the company.

Garrett Smith

Back To Top