Sangoma has amply demonstrated an ability to leverage unique opportunities such as open-source telephony in a mature, yet rapidly evolving market and translate it to accelerated revenue growth.
With the advent of VoIP, Sangoma found that it could easily make use of its data communication products, experience, and expertise in the voice communication market. Initially meant to be an additional revenue stream, the voice business now accounts for a large percentage of the company’s revenue.
The nascent open-source telephony movement gathered steam around the same time that Sangoma made a foray into the voice communication market. At that time, among various emerging open-source solutions, the Asterisk movement was growing in popularity, with Digium being the only provider of hardware supporting Asterisk deployments. Sangoma realized the opportunity to provide high quality hardware for a movement that could significantly impact the business telephony landscape.
"Sangoma’s focus on high-quality, enterprise-grade hardware in the data communication market enabled it to position itself as a provider of hardware that was needed for a business-grade Asterisk deployment," says Frost & Sullivan Industry Analyst Krithi Rao. "With Asterisk gaining momentum in business-grade deployments, Sangoma has been able to leverage that momentum."
Sangoma’s top-notch product quality has reduced turn-key solution vendors’ support issues that they experienced with other hardware manufacturers. This has, in turn, allowed them to continue to focus on launching more novel products and competing with proprietary telephony vendors.
"Sangoma’s level of commitment in catering to the open-source telephony market is unique compared to other incumbent hardware vendors that only occasionally address the needs of this market," notes Rao. "While many of its hardware counterparts focus on specific open-source telephony projects, Sangoma’s products can work with multiple open-source telephony initiatives including Asterisk, FreeSWITCH, CallWeaver, and Yate."
In order to support the constantly evolving open-source telephony software that includes new features or bugs with every release, hardware vendors have to react quickly and make necessary modifications to their hardware connectivity products. Sangoma can effectively address this challenge due to its products’ unique modular architecture where the core of the product can remain the same and changes can be made to an abstracted "daughter" layer.
In Q2 2007, Sangoma declared a phenomenal increase of 95 percent in revenue over Q2 2006. Although, not quite as impressive, it still notched up a substantial 68 percent growth in Q3 2007 over Q3 2006. In most quarters, sales to the open-source telephony market accounted for most of the growth. The company reported almost 40 percent growth from 2005 to 2006 accelerating to accelerating to 72 percent growth in 2007.
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About Sangoma Technologies Corporation
Founded in 1984, Sangoma Technologies Corporation (sangoma.com) is a leading provider of PC-based telephony hardware and software products for proprietary and open source based telephony solutions. The company develops and manufactures voice and data communication products including the industry-leading series of Advanced Flexible Telecommunications (AFT) PCI cards. Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSXV: STC - News).
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