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What's Up With Mitel

October 17, 2017

Mitel announced this week that it now serves more than one million hosted cloud seats. The news comes less than a month after the company closed its acquisition of ShoreTel.

This growth is part of a larger trend in unified communications as a service. Synergy Research Group, which released new data about this space, said UCaaS adoption is strong. It’s accelerating at an annualized rate of 29 percent, according to the research firm.

“We are also seeing an up-market acceleration of UCaaS adoption, moving from serving mostly smaller sized organizations now to gaining traction in businesses of over 100 seats and over 1,000 seats,” said Synergy founder and chief analyst Jeremy Duke, who added that there’s plenty of runway for UCaaS in displacing legacy business communications systems.

Synergy in its new report names RingCentral the overall UcaaS market leader. It says 8x8, Mitel, BroadSoft, and Vonage are next in line. The research firm also published a graphic breaking the UCaaS market into retail, cloud communications, and wholesale bubbles.

• Retail market leaders include RingCentral, 8x8, ShoreTel (which is now owned by Mitel), and Vonage, according to the UCaaS fourth quarter 2017 graphic.

• Mitel is a market leader in the cloud communications space, according to Synergy Research Group, which sandwiched the company between Cisco and Avaya in this grouping.

• And Mitel appears as the No. 3 market leader in the UCaaS wholesale category, beneath BroadSoft and RingCentral.

In the Gartner UCaaS Magic Quadrant report published last month, that research firm lists Mitel among the Visionaries. Others in that quadrant include Fuze and BroadSoft. The Leaders quadrant contains Verizon, RingCentral, BT, Orange Business Series, 8x8, and West. Challenges include Microsoft, Google, and AT&T. NTT Group, Masergy, and Star2Star are identified as Niche Players.

The United States, the United Kingdom, and Germany contribute most of the revenues from UCaaS solutions, according to Synergy. That helps explain why Mitel recently signed on 11 new certified partners in Germany

Edited by Mandi Nowitz

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